Bill Text: NJ S1637 | 2024-2025 | Regular Session | Amended

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Bill Title: Requires Secretary of Agriculture to establish Farm to School Local Food Procurement Reimbursement Grant Program to reimburse school districts for costs expended in sourcing and procuring local foods for students; appropriates $4,500,000.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2024-12-12 - Referred to Senate Budget and Appropriations Committee [S1637 Detail]

Download: New_Jersey-2024-S1637-Amended.html

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[First Reprint]

SENATE, No. 1637

STATE OF NEW JERSEY

221st LEGISLATURE

 

PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION

 

 

Sponsored by:

Senator  ANDREW ZWICKER

District 16 (Hunterdon, Mercer, Middlesex and Somerset)

Senator  SHIRLEY K. TURNER

District 15 (Hunterdon and Mercer)

 

Co-Sponsored by:

Senators Ruiz and Cruz-Perez

 

 

 

 

SYNOPSIS

     Requires Secretary of Agriculture to establish Farm to School Local Food Procurement Reimbursement Grant Program to reimburse school districts for costs expended in sourcing and procuring local foods for students; appropriates $4,500,000.

 

CURRENT VERSION OF TEXT

     As reported by the Senate Economic Growth Committee on December 12, 2024, with amendments.

  

An Act concerning the procurement of local food products by school districts, supplementing Title 4 of the Revised Statutes, and making an appropriation. 

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    As used in this act:

     "Baseline levels" or "baselines" means the baseline levels identified by a school district pursuant to paragraph (5) of subsection c. of section 2 of this act.

     "Department" means the Department of Agriculture.

     "Eligible costs" means the actual, documented costs, which are reimbursable with program grant funds, as provided by subsection f. of section 2 of this act, and which are expended by an eligible school district, by a participating ¹partner¹ school, or by a ¹[district-operated or third party-contracted food service provider or vendor] school food authority¹ operating in the district, in order to implement or undertake the expanded or modified local food procurement policies, ¹practices,¹ standards, processes, systems, or activities described in ¹[a grant application] the district's proposed local food procurement plan,¹ submitted pursuant to ¹paragraph (5) of¹ subsection c. of section 2 of this act.

     "Eligible school district" or "eligible district" means a school district in which all participating ¹partner¹ schools provide subsidized school meals to students who are eligible therefor¹, and which school district timely submits an attestation form, pursuant to subsection c. of section 2 of this act and in accordance with any relevant attestation deadlines established by the secretary for the program year, as necessary to obtain a pro rata share of reimbursement grant funding annually appropriated, deposited into the Farm to School Local Food Procurement Reimbursement Fund, and dedicated for program purposes¹.

     "Expanded or modified local food procurement policies, standards, processes, systems, or activities" means those policies, standards, processes, systems, or activities, described in ¹[a grant application] an attestation form¹ submitted pursuant to subsection c. of section 2 of this act, which are being newly implemented or undertaken, in ¹[a] an eligible¹ school district or in ¹[participating] partner¹ schools therein, specifically in order to increase, above current levels, the total number or type of local foods being procured for students in the district, the meal periods during which such local foods are served to students in the district, or the total number or type of students in the district who are being provided with access to such local foods, during either the school year or the summer months, or both.

     "Federal School Breakfast Program" means the same as that term is defined in section 1 of P.L.2022, c.104 (C.18A:33-3.2).

     "Ineligible costs" means any costs that do not constitute eligible costs for the purposes of the Farm to School Local Food Procurement Reimbursement Grant 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 ¹[district's grant application,] attestation form¹ submitted pursuant to subsection c. of section 2 of this act.

     "Local food" or "local food product" means any raw, whole, or minimally processed fruit, vegetable, herb, meat, seafood, legume, or grain that is 100 percent grown, raised, or caught in the State or in State waters, regardless of the where the distributor of such food is located.  "Local food" or "local food product" includes New Jersey canned tomatoes, but does not include fluid dairy milk.

     ¹"Local Food for Schools Cooperative Agreement Program" means the federal program, established and administered by the Agricultural Management Service in the United States Department of Agriculture, pursuant to which the Agricultural Management Service is authorized to enter into cooperative agreements, with individual states, in order to provide such states with federal financial assistance, as necessary to enable the procurement thereby of local and regional foods from small businesses, from local and regional farmers and food producers, and from socially disadvantaged farmers and food producers, and the distribution thereby of such local and regional foods, to students at partner schools, as part of the State's school meal programs.

     "Local food procurement partners" means all participating partner schools and school food authorities which:  are operating within the boundaries of an eligible school district; are participating in or are benefiting from the implementation of the district's proposed local food procurement plan; and are entitled to receive a district-authorized and apportioned share of program grant funding awarded to the district in any program year, in order to reimburse the eligible costs being expended by such schools and school food authorities in association with their effectuation or undertaking of new, expanded, or modified local food procurement policies, practices, standards, processes, systems, or activities, consistent with the district's proposed local food procurement plan.¹

     "Minimally processed" means that a local food product is in its raw or whole state, or has been cut, chopped, sliced, butchered, dried, or frozen, but has not been cooked, heated, canned, or been subject to supplementation with any additives or fillers.

     "National School Lunch Program" means the same as that term is defined in section 1 of P.L.2022, c.104 (C.18A:33-3.2).

     "Participating ¹partner¹ school" ¹or "partner school"¹ means a school that is identified, by a school district, in ¹[a grant application] an attestation form¹ submitted pursuant to subsection c. of section 2 of this act, and which has agreed to participate in the expanded or modified local food procurement policies, standards, processes, systems, or activities being implemented or undertaken in the district with the use of grant funds awarded under the Farm to School Local Food Procurement Reimbursement Grant Program.

     "Program" means the Farm to School Local Food Procurement Reimbursement Grant Program established pursuant to section 2 of this act.

     ¹"Program year" means each State fiscal year, commencing on July 1 of each calendar year following the date of enactment of this act, for which moneys appropriated, pursuant to sections 4, 6, or 7 of this act, and deposited into the Farm to School Local Food Procurement Reimbursement Fund, are available for distribution and use by the department, for dedicated program purposes.

     "Proposed local food procurement plan" means a plan developed by a school district and submitted to the department, pursuant to paragraph (5) of subsection c. of section 2 of this act, which describes the new, expanded, or modified local food procurement policies, practices, standards, processes, systems, or activities that are proposed to be implemented or undertaken by the district, and by its local food procurement partners, with the assistance of reimbursement grant funding awarded to the district in and for the program year.¹

     "School breakfast program" means the same as that term is defined in section 1 of P.L.2022, c.104 (C.18A:33-3.2).

     ¹"School food authority" or "SFA" means the entity that is responsible for providing, or for contracting with appropriate food service management companies or other third-party food service vendors to provide, school meal services to students at one or more participating partner schools in the State, pursuant to, and for the purposes of, the State's school meal programs.¹

     "School lunch program" means the same as that term is defined in section 1 of P.L.2022, c.104 (C.18A:33-3.2).

     "Secretary" means the Secretary of Agriculture.

     "Small or mid-sized family farm" means a farm that is categorized, by the United States Department of Agriculture Economic Research Service, as a small family farm¹[, which has] having¹ an annual gross cash farm income of less than $350,000, or as a mid-sized family farm¹[, which has] having¹ an annual gross cash farm income of not less than $350,000¹,¹ and not more than $999,999.

     "Socially disadvantaged farmer" means a person who is trained to engage in agricultural or horticultural activities and is a member of a socially disadvantaged group.

     "Socially disadvantaged group" means 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.

     "Subsidized school meals" or "subsidized meals" means school lunch or breakfast, or both, the cost of which is partially or fully subsidized by the State or federal government pursuant to the National School Lunch Program, the federal School Breakfast Program, and the associated provisions of P.L.1974, c.53 (C.18A:33-4 ¹et seq.¹ ), P.L.2003, c.4 (C.18A:33-9 et seq.); P.L.2019, c.445 (C.18A:33-21.1), and P.L.2022, c.104 (C.18A:33-3.2 et al.).

     "Subsidized student" means the same as that term is defined in section 1 of P.L.2022, c.104 (C.18A:33-3.2).

     "Summer Food Service Program" means the federal reimbursement program, established under 42 U.S.C. s.1761 and 7 C.F.R. Part 225, pursuant to which the United States Department of Agriculture is authorized to provide grants-in-aid and other assistance to the states, as may be necessary to help schools, local government agencies, nonprofit organizations, colleges and universities, and summer camps finance the administrative and operational costs of providing meals to children, in low-income areas, during the summer months and other planned periods of school closure.

 

     2.    a.  The Secretary of Agriculture shall establish and operate a Farm to School Local Food Procurement Reimbursement Grant Program¹, in accordance with the provisions of this act and within the limits of moneys appropriated therefor pursuant to subsection a. of section 4, and sections 6 and 7, of this act¹.  The purpose ¹and goals¹ of the grant program shall be to provide sufficient ¹and proportional¹ reimbursement financing¹,¹ to eligible school districts in the State, ¹[as necessary] in order¹ to ¹[allow] encourage and enable¹ such districts to ¹[implement or undertake expanded] initiate, expand,¹ or ¹[modified] otherwise modify the¹ local food procurement policies, ¹practices,¹ standards, processes, systems, and activities ¹being employed thereby or undertaken therein,¹ at their own pace, and to whatever extent that such policies, ¹practices¹ standards, processes, systems, and activities are capable of being so ¹initiated,¹ expanded¹,¹ or modified, as may be necessary to ¹effectuate an¹ increase ¹or expansion in¹ the ¹[total number or type] types or amounts¹ of local foods being procured for students, the meal periods during which ¹[such]¹ local foods are served to students, or the total number or ¹[type] types¹ of students ¹[being offered such] being provided with access to¹ local foods, for the purposes of the National School Lunch Program, the federal School Breakfast Program, the Summer Food Service Program, and any other school meals programs operated during the school year or the summer months, or both.

     b.    The secretary shall be authorized to annually award a program grant¹,¹ to each eligible school district that submits an ¹[application therefor] attestation form¹, pursuant to subsection c. of this section, in accordance with the following minimum and maximum annual funding allowances:

     (1)   a small school district, which has less than 5,000 students enrolled at ¹[participating] partner¹ schools, shall be eligible to receive an annual program grant of not less than $10,000 and not more than $50,000;

     (2)   a medium-sized school district, which has not less than 5,000 and not more than 10,000 students enrolled at ¹[participating] partner¹ schools, shall be eligible to receive an annual program grant of not less than $20,000 and not more than $125,000; and

     (3)   a large school district, which has 10,000 or more students enrolled at ¹[participating] partner¹ schools, shall be eligible to receive an annual program grant of not less than $44,000 and not more than $250,000.

     c.     A school district that wishes to obtain a ¹reimbursement¹ grant ¹award¹ under the Farm to School Local Food Procurement Reimbursement Grant Program¹, for use in any program year,¹ shall submit ¹[an application therefor]¹, in a ¹[form and]¹ manner ¹and by a deadline¹ prescribed by the secretary¹[.  The grant application shall], a program participation attestation form that includes, at a minimum¹:

     (1)   ¹[identify] a statement certifying¹ the total number ¹[and percentage]¹ of ¹partner¹ schools¹[,]¹ in the district¹[, that] which¹ will be participating in, or directly benefitting from, ¹[grant-funded] the¹ local food sourcing and procurement activities¹[, and the total number of students enrolled at participating schools in the district] being undertaken therein with program grant funding¹;

     (2)   based on the ¹[enrollment numbers] number of students enrolled at all partner schools in the district, as¹ identified pursuant to paragraph (1) of this subsection, ¹[indicate whether] a statement certifying¹ the ¹[applicant district constitutes] district's status as¹ a small district, a medium-sized district, or a large district, for the purposes of funding determinations being made pursuant to ¹[subsection b. of]¹ this section, and ¹[indicate] identifying¹ the total amount of ¹[the] program¹ grant ¹[award] funding¹ being sought by the district, within the appropriate minimum and maximum funding range established¹,¹ pursuant to subsection b. of this section¹, for similarly sized districts¹;

     (3)   ¹[for each participating school, identify:  (a) the location of the school; (b) whether the school offers a school lunch program, a school breakfast program, or both, and whether breakfast, if served, is made available to students through a breakfast after the bell program; (c) the current price being charged to students at the school who are required to pay for school meals being served thereto; and (d) the number and percentage of students at the school who are eligible for subsidized school meals;

     (4)   indicate whether the district, or any participating school therein, is located in a food desert area, as designated by the New Jersey Economic Development Authority pursuant to section 38 of P.L.2020, c.156 (C.34:1B-306);

     (5)   include a copy of the district's existing food procurement plan, if relevant, including baseline data that specifically identifies the type and amount of local food products currently being sourced and procured for students at participating schools in the district;

     (6)  describe the ways in which the district proposes to use program grant funding to initiate, expand, or otherwise modify its local food procurement policies, standards, processes, systems, or activities, and expressly identify the expanded types or amounts of local food products that the district proposes to source and procure for students, the expanded meal periods during which the district proposes to serve local food products to students, or the expanded number or types of students who will be provided with access to local foods, as the case may be, beyond the baselines identified pursuant to paragraph (5) of this subsection, through the use of a program grant;

     (7)   identify the name and address of, or provide other appropriate contact information for, each farm or other local food producer from which local foods will be sourced under the district's revised local food procurement program;

     (8)   identify all other State or federal grant awards and financing options that are available to finance the district's eligible costs.  To the extent that the school district's food service department budget contains reference to all available awards and financing options, the school district may submit a copy of its current food service department budget for the purposes of this paragraph] a statement certifying, and briefly describing, the purposes for which the awarded program grant funds will be used by the district, and by its local food procurement partners, in the upcoming program year;

     (4)   a statement certifying whether, and to what extent, the district is seeking the department's discretionary authorization, pursuant to paragraph (2) of subsection f. of this section, in order to enable a portion of the district's program grant award to be used for technical assistance expense purposes in the upcoming program year, and specifying the proportion of the total requested program funding award, by percentage and dollar amount, which is being sought for such discretionary purposes;

     (5) a certified copy of the district's proposed local food procurement plan, as well as a brief summary describing the district's current baseline local food sourcing activities and approximate local food budget, if any, and identifying the extent to which farmers have provided local foods to the district's students during the immediately preceding school year¹; and

     ¹[(9) provide] (6)¹  any other information ¹or attachments¹ required by the secretary.

     d.    ¹[Grants under] (1)  Moneys appropriated, deposited in¹ the Farm to School Local Food Procurement Reimbursement ¹[Grant Program,] Fund, and dedicated for program use in each program year, in accordance with the provisions of this act,¹ shall be ¹proportionally allocated and¹ awarded ¹, to and among all eligible school districts,¹ on ¹[a competitive] an equitable, pro rata¹ basis¹[, within the limits of moneys appropriated or otherwise made available to the department for the program's purposes]¹.  ¹[Any] The proportional amount of reimbursement grant funding to be awarded to each eligible school district, in each program year, shall be determined by the department, in accordance with a funding formula developed pursuant to subsection e. of this section, and shall be sufficient to reimburse all, or a portion of, the district's eligible costs at a rate that is proportional to the reimbursement rate applied by the department, in the same program year, to other, similarly sized and situated school districts.

     (2)   Reimbursement¹ grant ¹[moneys] funding¹ awarded ¹in each program year,¹ pursuant to ¹[program] this act,¹ shall be distributed directly ¹, and on an installment basis in accordance with section 3 of this act,¹ to ¹[the applicant] each eligible¹ school district, ¹[as provided by section 3 of this act,]¹ and each such ¹recipient¹ school district ¹[receiving an award of grant moneys]¹ shall be authorized to use and ¹to further allocate and¹ disburse the ¹distributed¹ funds, as appropriate and necessary to reimburse the eligible costs ¹[that have been]¹ expended¹, during the program year,¹ by the district, ¹and¹ by ¹[participating schools, or by district-operated or third party-contracted food service providers or vendors] its local food procurement partners,¹ in association with the ¹implementation of the¹ district's ¹[expanded sourcing and] proposed local food¹ procurement ¹[of local foods, consistent with the provisions of subsection f. of this section and section 3 of this act] plan¹.

     e.     ¹[In reviewing grant applications and making funding determinations pursuant to] The funding formula developed, for the purposes of subsection d. of¹ this section, ¹[the secretary] shall be designed to¹:

     (1)   ¹[shall consider] facilitate the apportionment and allocation, to and among all eligible school districts, of equitable, pro rata shares of funding appropriated, deposited in the Farm to School Local Food Procurement Reimbursement Fund, and available for program purposes in each program year, based upon, and taking into consideration¹:  (a) ¹the size of each district, and the number of participating partner schools therein; (b)¹ the ¹[extent to which] number and percentage of¹ students ¹enrolled¹ at ¹[participating] partner¹ schools¹,¹ in ¹[the applicant] each¹ district¹, who¹ are eligible for subsidized school meals; ¹[(b)] (c)¹ whether, and the extent to which, ¹[the] each eligible school¹ district ¹,¹ and participating ¹partner¹ schools ¹therein,¹ are located in a food desert area; ¹[(c)] (d)¹ whether, and the extent to which, ¹[the] awarded program grant funding is expected to be used by each¹ district¹,¹ and ¹[participating schools will be encouraged or required, pursuant to the expanded or modified local food sourcing or procurement policies, standards, processes, systems, or activities being implemented or undertaken through the use of grant funds] by the district's local food procurement partners¹, ¹in order¹ to ¹[source] facilitate, encourage, or mandate the sourcing¹ and ¹[procure] procurement of¹ local food products produced by small or mid-sized family farms or socially disadvantaged farmers in the State; and ¹[(d)] (e)¹ whether, and how many times, ¹[the] each eligible school¹ district has previously ¹[applied for,]¹ received, and ¹has¹ fully expended, ¹[program] reimbursement¹ grant funding ¹awarded in prior program years¹; and

     (2)   ¹[shall give priority] provide for proportionally adjusted pro rata shares of available program¹ funding ¹[preference] to be allocated, in each program year,¹ to those eligible school districts that:  (a) have a high number or percentage of subsidized students enrolled at ¹[participating] partner¹ schools and will use awarded grant funds, in full or in part, to increase subsidized students' access to local foods; (b) are located, or have ¹[participating] one or more partner¹ schools located, in a food desert area; (c) ¹[propose] will use, or will encourage or require their local food procurement partners to use awarded grant funds¹ to ¹[expand or modify their local food procurement policies so as to require] facilitate or mandate¹ the increased sourcing and procurement of local ¹[food products] foods¹ produced by small or mid-sized family farms or socially disadvantaged farmers in the State; or (d) were recipients of a program grant award in one or more prior ¹program¹ years, the full amount of which has been ¹[expended and reimbursed] exhausted,¹ in compliance with all applicable ¹program¹ requirements¹, for the reimbursement of eligible costs expended in the relevant program year¹.

     f.  ¹[Of] (1)  Except as otherwise provided by paragraph (2) of this subsection, of¹ the program grant funds annually awarded to an eligible school district, pursuant to this section¹[:

     (1)   at least 80] , 100¹ percent shall be used¹[, by the school district,]¹ to reimburse the costs ¹[being]¹ expended by the district, ¹and¹ by ¹[participating schools, and by district-operated or third party-contracted food service providers or vendors,] the district's local food procurement partners, during the program year,¹ in sourcing and procuring the increased types or ¹[numbers] amounts¹ of local foods that are needed to implement the ¹[district's] new,¹ expanded¹,¹ or modified local food procurement policies, ¹practices,¹ standards, processes, systems, and activities¹[, as]¹ described in the ¹[grant application; and] district's proposed local food procurement plan.¹

     (2) ¹Notwithstanding the provisions of paragraph (1) of this subsection to the contrary, the department, acting on a discretionary and individual case basis, may authorize¹ up to 20 percent ¹[may] of the grant funds annually awarded to an eligible school district, pursuant to this section, to¹ be used ¹[, by the school district, to reimburse] for reimbursement of¹ the costs ¹[being] that are¹ expended ¹, during the program year,¹ by the district¹[, by participating schools, and by district-operated and third party-contracted food service providers or vendors, in acquiring, maintaining, repairing, replacing, or updating appropriate equipment, materials, and supplies, or in employing or training appropriate staff, as] and the district's local food procurement partners, for technical assistance expenditures that are deemed, in department's discretion, to be¹ necessary to facilitate the effective implementation of the ¹[district's] new,¹ expanded ¹,¹ or modified local food procurement policies, ¹practices,¹ standards, processes, systems, and activities¹[, as]¹ described in the ¹[grant application] district's proposed local food procurement plan; provided, however, that the use of program grant funds for such technical assistance expenditures, and the percentage and dollar amount of the total program grant funding award which is to be made available to a district, for such purposes, shall be authorized and determined, in the department's discretion, only in a case where the school district has included, in the attestation form submitted pursuant to subsection c. of this section, for the relevant program year, a statement certifying the need for such technical assistance funding and identifying, by percentage and dollar amount, the proportion of the total grant funding award being requested for discretionary allocation and use for such purposes¹.

     g.    Grant moneys awarded pursuant to the Farm to School Local Food Procurement Reimbursement Grant Program shall not be used to reimburse any ineligible costs, and shall not be used to reimburse any eligible costs that are already being paid for or reimbursed with other State or federal funds.  In any case where another State or federal agency or program is providing funding for eligible costs ¹[being]¹ expended by the district, ¹or¹ by ¹[participating schools, or by district-operated or third party-contracted food service vendors] its local food procurement partners¹, in association ¹with¹ the ¹[expansion or modification] implementation¹ of the district's ¹proposed¹ local food procurement ¹plan or any of the new, expanded, or modified local food procurement¹ policies, ¹practices,¹ standards, processes, systems, or activities ¹described therein¹, the total eligible costs that are reimbursable under the Farm to School Local Food Procurement Reimbursement Grant Program shall be reduced by the amount of the other State or federal contributions.

     h.    ¹(1)¹ A school district ¹[that is approved for] receiving¹ a program grant award, pursuant to this section, shall ¹[not be entitled to receive a lump-sum disbursement of the grant funds, and shall, instead,]¹ be required to prepare and submit¹, on¹ a monthly¹, quarterly, or other periodic installment basis throughout the program year, as specified by department rule or regulation, an¹ invoice and accounting statement¹[, to the secretary, in each month of the annual disbursement period established pursuant to subsection a. of section 3 of this act, in order to receive a disbursement of grant funds awarded pursuant to this section] documenting the eligible costs expended by the district, and by its local food procurement partners, during the relevant accounting period¹.  ¹[Each monthly]

     (2) The periodic¹ invoice and accounting ¹[statement] statements required, pursuant to this subsection, shall be submitted in a form and manner, and at a frequency and by the deadlines, prescribed by secretary, and¹ shall include:

     ¹[(1)] (a)¹  the name and address of, or other contact information for, each farm or other local food producer ¹[supplying] that supplied¹ local food products to the school district¹, or to its local food procurement partners, during the relevant accounting period¹;

     ¹[(2)] (b)¹  appropriate receipts, photos, or other documentation verifying the expenditures ¹[being accounted for] invoiced,¹ in the ¹[monthly invoice and accounting]¹ statement¹, for the relevant accounting period¹; ¹[and]¹

     ¹[(3)] (c)¹  a brief explanation ¹[documenting why] setting forth the basis upon which¹ such ¹invoiced¹ expenditures should be deemed to constitute eligible costs for the purposes of program reimbursement¹; and

     (d)   any other relevant information required by the secretary.

     i.     Reimbursement payments authorized pursuant to this section shall be requested by grant award recipients, and issued by the department, using a reliable and efficient automated system that is specifically designed, or is otherwise capable of being used, for program-related expense invoicing and tracking purposes.  The commissioner shall be authorized either to develop and implement a new automated system or to modify and utilize an existing automated system, as necessary to facilitate the submission of reimbursement claims and the issuance of reimbursement payments under the program, in accordance with the requirements of this section¹.

 

     3.    a.  ¹[Grant] Reimbursement grant¹ funds awarded ¹to an eligible school district,¹ under the program¹, shall not be disbursed to the recipient district in a single, lump-sum payment, but¹ shall be disbursed to the ¹[recipient]¹ school district on a rolling, term-limited, monthly¹, quarterly, or other periodic¹ installment basis, ¹as specified by department rule or regulation,¹ over the course of a ¹[single-year commencing on September 1 and ending on July 31 next following the date on which the program grant is awarded pursuant to section 2 of this act,] single program year¹ and using a draw-down process that provides for reimbursement checks to be issued ¹[to the district]¹ within ¹[60] 120¹ days after the ¹[department receives each monthly] district submits a periodic¹ invoice and accounting statement ¹[submitted by the district pursuant to] for the relevant accounting period, as required by¹ subsection h. of section 2 of this act. ¹[The amount of each such] Each¹ installment payment ¹authorized and issued, pursuant to this section,¹ shall be sufficient ¹in amount¹, within the limits of ¹funding annually allocated to¹ the ¹[district's annual] district in its program¹ grant ¹[funding]¹ award, to reimburse the eligible costs documented in the district's most recent ¹[monthly] periodic¹ invoice and accounting statement.

     b.    ¹[Grant] Reimbursement grant¹ funds disbursed to a school district, pursuant to this section, may be further ¹apportioned,¹ allocated¹, and distributed¹, by the ¹recipient¹ district, to ¹[participating schools, or to district-operated or third party-contracted food service providers or vendors] and among the district's local food procurement partners¹, in order to reimburse the eligible costs ¹[being]¹ expended thereby ¹during the relevant accounting period¹, as documented in the district's most recent invoice and accounting statement.

     c.     Except as otherwise provided by subsection ¹[d.] e.¹ of this section¹[,]:

     (1)¹  any program grant funds that are awarded to a school district, but which remain unclaimed by the district at the end of the annual disbursement period established pursuant to subsection a. of this section, shall be reclaimed by the secretary, at that time, and ¹[used to finance future grant awards under the program] redeposited into the Farm to School Local Food Procurement Reimbursement Fund for the fund's dedicated purposes; and

     (2) any program grant funds that are disbursed, to an eligible school district, through a periodic installment payment authorized in any program year pursuant to subsection a. of this section, but which are not used, allocated, or distributed, by the school district, for the reimbursement of eligible costs identified in its associated invoice and accounting statement, shall, at the end of such program year, be reclaimed by the secretary and redeposited into the Farm to School Local Food Procurement Reimbursement Fund for the fund's dedicated purposes¹.

     d.    Nothing in this section, or in any other provision of law, rule, or regulation, shall be deemed to prohibit an eligible school district that receives a program grant in one year from applying for another program grant in any subsequent ¹program¹ year.  ¹[However, the roll-over of awarded]

     e.     (1)  Any eligible school district that receives a¹ program ¹grant award shall be prohibited from engaging in the roll-over of the awarded¹ grant funds¹,¹ from one ¹program¹ year to the next ¹[shall be prohibited]¹, except as ¹may be¹ otherwise ¹expressly¹ authorized ¹by the department¹ pursuant to ¹paragraph (2) of this¹ subsection ¹[e. of this section]¹. 

     ¹[e.] (2)¹    Whenever a school district receives a program grant ¹award¹ and is unable to use all ¹of the awarded¹ grant funds ¹[awarded thereto]¹ in a single ¹program¹ year, due to a hardship beyond the district's control, including, but not limited to, a natural disaster, or a significant transition or turnover in the financial management or staffing of the food service authorities, providers, or vendors that facilitate local food sourcing or procurement services in the district, the secretary may, upon application by the school district, authorize any remaining grant fund balance to be rolled-over and used by the district, for the same purposes, in the next ¹[school] program¹ year, subject to the same rolling disbursement requirements established by subsection a. of this section.  Any school district applying for roll-over funding, pursuant to this subsection, shall submit documentation sufficient to establish, to the secretary's satisfaction, that the district's failure to expend the full amount of the grant award, during the ¹[first annual disbursement period established] program year in which the awarded grant funds were disbursed¹ pursuant to subsection a. of this section, is the result of a reasonable, valid, and unexpected hardship outside the district's control.

 

     ¹4.  a.  The department and Legislature shall take appropriate action, to the greatest extent practicable, to facilitate the uninterrupted, seamless, and continuous operation of the Farm to School Local Food Procurement Reimbursement Grant Program, and the annual appropriation and availability of dedicated funding sufficient for the program's purposes, from one program year to the next.  To that end, and following the expenditure of funds initially appropriated for program purposes, pursuant to sections 6 and 7 of this act:

     (1)   the department shall include, in each annual budget request submitted to the Legislature, a request for the appropriation of funds in an amount, not exceeding $4,500,000, which is deemed by the department to be sufficient to support and continue program operations and facilitate the achievement of program goals and the proportional financing of individual program grant awards, in the next upcoming program year; and

     (2)   the Legislature shall annually appropriate, from the General Fund to the Department of Agriculture, for deposit into the Farm to School Local Food Procurement Reimbursement Fund, for the dedicated purposes set forth in subsection c. of section 5 of this act, a sum of moneys, not in excess of $4,500,000, which sum is consistent with the sum requested in the department's annual program appropriations request, submitted pursuant to paragraph (1) of this subsection, and is sufficient to enable the department to continue operating the program and financing the issuance of proportional reimbursement grant awards to all eligible school districts thereunder, in the upcoming program year, in accordance with the provisions of this act and the rules and regulations adopted pursuant thereto.

     b.    In, and for the purposes of, each annual appropriations request submitted pursuant to paragraph (1) of subsection a. of this section, the department shall identify: 

     (1)   the total amount of moneys previously appropriated to the department and deposited into the Farm to School Local Food Procurement Reimbursement Fund, for the program's purposes, in each preceding program year and cumulatively, over the program's lifetime;

     (2)   the total amount of moneys previously deposited in the fund which remain unexpended and available for appropriation and use in an upcoming program year;

     (3)   the estimated number, and the proposed minimum, maximum, mean, and average dollar amounts, of individual program grant awards that are expected to be financed with newly appropriated funds in the upcoming program year;

     (4)   the total amount of federal funding received, in the preceding year, and the total amount of federal funding expected to be received, in the upcoming year, pursuant to the Local Food for Schools Cooperative Agreement Program or any other similar federal program or law, for the purposes of facilitating the State's procurement of local or regional foods for use by participating partner schools; and

     (5)   any other data or information required by department rule or regulation.

     c.     The department shall, to the greatest extent practicable:

     (1)   maximize the receipt and use of federal funds that are made available to the State, under the Local Food for Schools Cooperative Agreement Program or other, similar federal programs or laws, for the purposes of procuring local or regional food products under the Farm to School Local Food Procurement Reimbursement Grant Program; and

     (2)   fully expend, in each year, and for the purposes of the Farm to School Local Food Procurement Reimbursement Grant Program, all federal funding that has been annually allocated to the State, pursuant to the Local Food Local Food for Schools Cooperative Agreement Program or other, similar federal programs or laws, to facilitate the State-level procurement of local or regional foods for schools, before moving to expend any State-level funding that has been appropriated and allocated, for the grant program's use and purposes, in the same program year.

     d.    The department shall annually submit a written program status report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, contemporaneously with its submission of an annual program appropriations request pursuant to paragraph (1) of subsection a. of this section.  Each such annually submitted program status report shall include, at a minimum, the following information:

     (1)   an update on the program's ongoing implementation status and operations, including, but not limited to, information identifying the total number of program years during which the program has been operating with dedicated funding, and indicating whether, and to what extent, there has been any interruption or disruption in program operations or in program grant award disbursements, or any significant reduction in the amount of funding appropriated for dedicated program purposes, during any prior program year, and the reasons therefor;

     (2)   an update on the development and implementation status, and the ongoing use and effectiveness of, the department's program funding formula, developed pursuant to subsections d. and e. of section 2 of this act, including, but not limited to, information describing whether, how, and to what extent, the funding formula has been designed, or is, has been, or will be applied in practice, to facilitate the funding determinations required by section 2 of this act;

     (3)   information identifying the number and percentage of eligible school districts that received upwardly adjusted pro rata shares of program funding in each program year, as authorized by paragraph (2) of subsection e. of section 2 of this act, and the basis upon which, and the minimum, maximum, mean, and average dollar amounts by which, such pro rata shares were upwardly adjusted;

     (4)   an assessment as to whether, how, and the extent to which, the Farm to School Local Food Procurement Grant Program has been successful, in each preceding program year and cumulatively, over the full term of program operations, in facilitating and incentivizing the implementation and undertaking of new, expanded, or modified local food procurement policies, practices, standards, processes, and activities, by and in eligible school districts in the State, consistent with the goals and purposes of this act;

     (5)   a summary of the methods and approaches that are being used to maximize the federal funding that is made available for the program's purposes, as required by subsection c. of this section; and

     (6)   the secretary's findings and recommendations regarding the necessity and benefits of continuing program operations, and of ensuring the continued appropriation and dedication of funding therefor, in the upcoming program year.¹

 

     ¹5.   a.  There is established in the Department of Agriculture a special, non-lapsing fund to be known as the Farm to School Local Food Procurement Reimbursement Fund.  The moneys in the fund are dedicated, and shall only be used for the purposes set forth in subsection b. of this section.  The fund shall be credited with: 

     (1)   all moneys appropriated for program purposes pursuant to subsection a. of section 4, and pursuant to sections 6 and 7, of this act;

     (2)   all moneys carried forward pursuant to subsection d. of this section;

     (3)   all interest received from the investment of moneys in the fund; and

     (4)   any other moneys which may, from time to time, otherwise become available for the purposes of the fund. 

     b.    Moneys deposited in the fund shall be held in interest-bearing accounts in public depositories, as defined pursuant to section 1 of P.L.1970, c.236 (C.17:9-41), and may be invested or reinvested in such securities as are approved by the State Treasurer, pending the disbursement of program grant awards, in each program
year, pursuant to this act.  Any interest or other income earned on moneys deposited into the fund, through investments or deposits made pursuant to this paragraph, shall be credited to the fund as provided by subsection a. of this section. 

     c.     (1) Moneys deposited in the fund shall be used only for the purposes of financing reimbursement grant awards issued to eligible school districts, under the Farm to School Local Food Procurement Grant Program, in accordance with the provisions of this act and the rules and regulations adopted pursuant thereto, except that, of the total amount of moneys annually deposited and available in the fund, for use in any program year, up to 15 percent of such total amount, but not more than $500,000, may be used to finance the administrative costs, set forth in paragraph (2) of this subsection, which are annually incurred by the department in establishing the program and in commencing and continuing program operations as provided by this act.

     (2)   The administrative costs that are reimbursable with appropriated program funds, as provided by paragraph (1) of this subsection, shall include, but need not be limited to, any administrative costs that are incurred by the department in: 

     (a)   hiring and employing at least one full-time staff person and other personnel, as necessary to properly administer and manage the grant program and provide relevant program-related information and assistance to eligible school districts thereunder;

     (b)   providing relevant outreach, information, and 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;

     (c)   acquiring, maintaining, and repairing relevant technology, equipment, and computer programs, as necessary to establish, implement, and successfully operate the program and facilitate the annual pro rata allocation, awarding, and periodic disbursement of available program grant funding thereunder; and

     (d)   monitoring and evaluating the ongoing implementation and operational status of the program, as well as its outcomes, costs, benefits, and ongoing and future funding needs, and reporting program-related data, assessments, and updates to the Governor and Legislature, and to members of the public, as necessary to implement the provisions and effectuate the purposes of this act.

     d.    Any moneys deposited in the Farm to School Local Food Procurement Reimbursement Fund and remaining unexpended at the end of the program year shall be carried forward and dedicated for the program's use and purposes in future program years, as provided in subsection b. of this section, subject to legislative appropriation.¹

 

     ¹[4.] 6.¹  There is appropriated¹[,]¹ from the General Fund¹,¹ to
the Department of Agriculture¹[,] for deposit into the Farm to School Local Food Procurement Reimbursement Fund,¹ the sum of ¹[$6,500,000] $4,000,000¹, ¹[of]¹ which ¹[$5,500,000]¹ shall be dedicated ¹solely¹ for use¹, by the department,¹ in ¹[issuing reimbursement grants] financing initial grant awards to eligible school districts,¹ under the Farm to School Local Food Procurement Reimbursement Grant Program ¹[and $1,000,000 shall be dedicated for use in financing the administrative costs incurred, by the department, in implementing the provisions of this act and the grant program established pursuant thereto, including:  the costs of employing a full-time staff person to administer and manage the grant program and serve as a contact and resource for grant applicants; the costs associated with the department's outreach, and provision of appropriate training, to farmers engaged in the sale or donation of local food products to schools and school districts; and the costs associated with evaluating and monitoring local food procurement expansion progress and outcomes in association with implementation of the grant program], in the first program year commencing on or after the effective date of this section.  The sums appropriated to the department, pursuant to this section, for the financing of initial program grant awards, shall be supplemental, and shall be appropriated in addition, to any sums that are otherwise appropriated thereto pursuant to, and on or after the effective date of, section 7 of this act, for the purposes of financing the department's initial program-related administrative expenses¹.

 

     ¹7.   In addition to the sums required to be appropriated for initial program grant awards pursuant to section 6 of this act, there is appropriated from the General Fund to the Department of Agriculture, the sum of $500,000, which shall be dedicated solely for the department's use in financing the administrative costs, as set forth in paragraph (2) of subsection c. of section 5 of this act, which are incurred in association with the department's initial establishment of the Farm to School Local Food Reimbursement Grant Program, pursuant to this act, and its commencement of initial program operations thereunder, in and for the first program year.¹

 

     ¹[5.  This] 8.  a.  Section 7 of this act shall take effect immediately. 

     b.    Sections 1 through 6 of this¹ act shall take effect on the first day of the ¹[fourth] thirteenth¹ month next following the ¹[appropriation of funds pursuant to section 4 of this act] date of enactment, or on January 1 of the second full calendar year next following the date of enactment, whichever date is later¹, except that the Department of Agriculture ¹[may] shall¹ take anticipatory administrative action, in advance of ¹[the] such¹ effective date, ¹and using the funds appropriated pursuant to section 7 of this act,¹ as may be necessary to ¹establish the Farm to School Local Food Procurement Reimbursement Grant Program and otherwise¹ implement the provisions¹, and effectuate the purposes,¹ of this act.