a) The Legislature hereby finds that farms, especially small- and mid-size family farms as defined by the U.S. Department of Agriculture, contribute to quality of life in STATE by generating economic opportunities, supporting stable family businesses, and generating healthy, fresh food, and that leveraging the agriculture grown on such farms to fight hunger in STATE will support these farms and ensure farm fresh food is available to people and families who struggle to find and afford fresh food.

b) The COMMISSIONER shall establish and promote a local foods procurement program with the goal that no later than [5 years from enactment], 20% of all food and food products procured by the state, state contractors, or other state institutions be food or food products produced in state.

c) To achieve this goal, when agricultural products are purchased by the state, state contractor, or by schools receiving public funding, agricultural products harvested in the state shall be purchased whenever priced no more than ten percent, or fifteen percent if harvested by a small or mid-sized family farm, as defined by the U.S. Department of Agriculture, above products harvested outside the state, are available and of like quality compared with agricultural products harvested outside the state.

i. A solicitation for the purchase of agricultural products shall specify the requirement that products harvested in the state by a small or mid-sized family farm, as defined by the USDA, shall be used where possible. If the state or a school receiving public funding purchases agricultural products harvested outside the state, the officer responsible for the purchase shall certify in writing the reasons that products harvested in the state were not purchased.

ii. State, state contractors, or schools interested in procuring unprocessed agricultural products harvested in the state may use the simplified acquisition threshold set in 2 C.F.R. §200.88.

iii. DEPARTMENT shall, by regulation, establish additional procedures and an enforcement mechanism for this section.

d) A taxpaying individual or corporation that is a grower of a crop and owns or runs a small or mid-sized family farm, as defined by the USDA, and that makes a qualified donation of a crop shall be allowed a credit against the taxes otherwise due under STATE law, as follows:

i) In the case of a qualified donation of salable goods the amount of the credit shall be twenty-five percent of the value of the quantity of the crop donated, computed at the wholesale market price. The Tax Department may establish an annual limit per filer which may not be less than $5,000.

ii) In the case of a qualified donation of non salable goods that is still usable and accepted by the donee, the amount of the credit shall be ten percent of the value of the quantity of the crop donated, computed at the wholesale market price that the grower would have received had the quantity of the crop been salable.

iii) This credit shall be available when crop donations are made to 501(c)(3) organizations or other charitable or social service organizations as promulgated by regulation. The DEPARTMENT shall promulgate regulations to enact this section.

e) To achieve the goal set out in subsection (a), there is hereby created an Office of Local Foods within DEPARTMENT. The Office shall establish and promote a local foods procurement program managed by this office, with the goal that no later than [5 years from enactment], 20% of all food and food products procured by state institutions be local food or food products. This Office shall establish guidelines to assist state institutions to assess their ability to procure local foods or food products while minimizing costs for that procurement.

f) These guidelines shall include goals of decreasing food scarcity in [STATE] by making local agricultural products available.

g) This Office shall work with and foster relationships between the agricultural industry, direct marketing organizations, food policy councils, public health groups, faith-based groups, nonprofit and philanthropic organizations, academic institutions, district agricultural associations, county, state, and federal agencies, and other organizations involved in making fresh food available.

h) The office, under the auspices of the DEPARTMENT, shall do all of the following:

i) Identify opportunities to reduce consumer and small business grocery costs that support small or mid-sized family farming, as defined by the USDA.

ii) Work with regional and statewide stakeholders to identify communities that lack healthy food, determine current barriers, and share information to encourage best practices.

iii) Coordinate with other local, state, and federal agencies to promote and increase awareness of programs that make healthy food more available.

iv) Promote greater retail sale of healthy food including at certified farmers’ markets, encouraging the development and sustainability of local policies that support urban agriculture, increasing the number and quality of food retail outlets in communities with limited food retail outlets, and maximizing resources in the interest of increasing affordable food in every community. The office shall improve availability  of local foods for recipients of benefits under any food supplement program by:

1) Expanding opportunities for farmers to sell local foods to recipients of food supplement program benefits by promoting the use of electronic benefits transfer cards at farmers’ markets and, in partnership with a statewide federation of farmers’ markets, encouraging participation in community supported agriculture by recipients of food supplement program benefits;

2) Assisting farmers’ markets in accepting payments through the electronic benefits transfer system by helping them secure equipment, including equipment that does not require the use of electricity, for processing payments through the electronic benefits transfer system;

3) In partnership with other relevant departments and agencies, educating recipients of food supplement program benefits of the opportunity to use the benefits at farmers’ markets and the advantages of such use; and

4) Identify opportunities for collaboration with community organizations, social services, and partner agencies to provide nutrition education and related classes to residents.

v) Identify food distribution barriers, including, but not limited to, shortage of food retail outlets, limited store capacity, high distribution costs, and lack of capital funding opportunities, and work to overcome those barriers through the following:

1) Encouraging food hubs or other aggregation systems.

2) Coordinating institutional food procurement and buying practices.

3) Increasing access to information, technical assistance, and resources.

4) Establishing public private partnerships with small or mid-sized family farms, as defined by the USDA.

vi) Identify opportunities and provide technical assistance for collaboration between farmers, regional and local food banks, partner agencies, and nonprofit charitable organizations in the gleaning, collection, and distribution of agricultural products for the purposes of reducing hunger and increasing access to healthy foods, and support tax credits available in subsection (b) of this act.

vii)Coordinate with school districts and representatives to do the following:

1) Provide tools to facilitate relationships between local producers and school food procurement personnel, and encourage opportunities to incorporate best purchasing practices such as Good Agricultural Practices (GAP) certification provided by the USDA and insurance.

2) Increase the nutritional profile of foods provided in schools.

3) Increase nutrition education programs and information in schools.

vii) Provide education and develop an outreach campaign to local farmers and other stakeholders for the purpose of supporting local foods providers, such as farms, farmers’ markets, community supported agriculture and seafood providers, to further the goal established in this section.

ix) Prioritize partnerships with small and mid-sized family-owned farms, as defined by the USDA.

x) Explore federal and nonprofit funding opportunities and partnerships to further the goals in this subsection and eliminate food insecurity in STATE.

i) STATE has a compelling interest in protecting privacy and the protection of personal information. In administering this Act, state and local agencies, businesses, and any other entity, shall only request data necessary to administer this Act and retain it only as required to administer and achieve the purposes of the Act. Any personal information or data collected or obtained in the course of administering this Act shall be shared only in a manner that has been deidentified and aggregated to the greatest extent allowable while still in compliance with federal eligibility requirements and every allowable effort shall be made to revoke access to such data should programs be eliminated or should there be an ineligibility determination. Personal information or data collected or obtained in the course of administering this Act shall not be otherwise disclosed without the informed consent of the individual, a warrant signed by a STATE judge or federal judge, lawful court order administered within STATE or a lawful federal court order, or subpoena administered within STATE or federal subpoena, or unless otherwise required by federal or state statute. Personal information or data may be considered deidentified if it cannot reasonably be used to infer information about, or otherwise be linked to, a particular individual or household.

j) The provisions of this Act are severable. If any provision of this Act or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.