SB 217 — An Act amending Title 3 (Agriculture) of the Pennsylvania Consolidated Statutes, providing for initiative to finance production of fresh food.

PRINTER'S NO.   164

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                        SENATE BILL
                        No. 217
                                                   Session of
                                                     2025

     INTRODUCED BY LANGERHOLC, FARRY, PENNYCUICK, CULVER, BARTOLOTTA,
        COSTA, HUGHES, HAYWOOD, MILLER AND FONTANA, FEBRUARY 3, 2025

     REFERRED TO AGRICULTURE AND RURAL AFFAIRS, FEBRUARY 3, 2025


                                      AN ACT
 1   Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
 2      Statutes, providing for initiative to finance production of
 3      fresh food.
 4      The General Assembly of the Commonwealth of Pennsylvania
 5   hereby enacts as follows:
 6      Section 1.    Title 3 of the Pennsylvania Consolidated Statutes
 7   is amended by adding a part to read:
 8                                   PART XXI
 9                                 FOOD SECURITY
10   Chapter
11      121.    Fresh Food Financing Initiative
12                                  CHAPTER 121
13                      FRESH FOOD FINANCING INITIATIVE
14   Sec.
15   12101.    Scope of chapter.
16   12102.    Definitions.
17   12103.    The Fresh Food Financing Initiative.
18   12104.    Grant fund eligibility.
 1   12105.   Grant money.
 2   § 12101.   Scope of chapter.
 3      This chapter relates to the Fresh Food Financing Initiative.
 4   § 12102.   Definitions.
 5      The following words and phrases when used in this chapter
 6   shall have the meanings given to them in this section unless the
 7   context clearly indicates otherwise:
 8      "Farmers' market."     A building, structure or place owned,
 9   leased or otherwise in possession by a person, municipal
10   corporation or public or private organization, used or intended
11   to be used by two or more farmers or an association of farmers
12   for the purpose of selling agricultural commodities directly to
13   consumers and which is physically located within this
14   Commonwealth.
15      "Food access organization."     A nonprofit organization with
16   expertise in improving access to food in underserved
17   communities.
18      "Grant."     A grant awarded under section 12103(f) (relating to
19   the Fresh Food Financing Initiative).
20      "Grocery store."     A for-profit or not-for-profit self-service
21   retail establishment that primarily sells meat, seafood, fruits,
22   vegetables, dairy products, dry groceries, household products
23   and sundries.
24      "Program."    The Fresh Food Financing Initiative established
25   under section 12103(a).
26      "Regional anchor supermarket."       A company that owns multiple
27   grocery stores within a given region.
28      "Retail food establishment."     As defined under section 5702
29   (relating to definitions).
30      "Underserved community."     A census tract determined to be an

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 1   area with low grocery store access by either the United States
 2   Department of Agriculture as identified in the Food Access
 3   Research Atlas, or through a methodology that has been adopted
 4   for use by another governmental entity, food access organization
 5   or the secretary.
 6      "USDA-designated food desert."          A census tract declared to be
 7   a food desert by the United States Department of Agriculture's
 8   Economic Research Service.
 9   § 12103.    The Fresh Food Financing Initiative.
10      (a)     Establishment.--The Fresh Food Financing Initiative is
11   established within the department.
12      (b)     Administration of program.--The program shall be
13   administered by the department. The department may collaborate
14   with the Department of Community and Economic Development to
15   improve food access in this Commonwealth.
16      (c)     Program management.--The department shall develop and
17   establish program guidelines and eligibility criteria to meet
18   the needs of program applicants and the communities served.
19      (d)     Program priority.--
20            (1)   The program shall promote local agricultural
21      products by placing priority on projects producing,
22      aggregating, sourcing or selling Pennsylvania agricultural
23      commodities, including the department's Pennsylvania
24      Preferred® Program, that:
25                  (i)    are located in or serve a USDA-designated food
26            desert;
27                  (ii)   increase business opportunities for businesses
28            recognized by the Department of General Services as
29            verified as a small diverse business or a small veteran
30            business; or

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 1                  (iii)   are accompanied with matching private funds.
 2            (2)   (Reserved).
 3      (e)     Project class.--The department shall make grants
 4   available in the following classes:
 5            (1)   Regional anchor supermarkets.
 6            (2)   Grocery stores.
 7            (3)   Retail food establishments.
 8            (4)   Farmers markets.
 9      (f)     Grants.--Grants in an amount not to exceed 15% of the
10   funding for any of the project classes established under
11   subsection (e) shall be awarded to qualifying applicants
12   selected to receive the awards for the purposes of capital
13   projects.
14      (g)     Matching funds.--A grant awarded to a regional anchor
15   supermarket under the program must be matched by private funds
16   in an amount equal to the grant.
17      (h)     Administrative or operational costs.--No more than 10%
18   of the funding under section 12105 (relating to grant money) may
19   be reserved for administrative and operational costs to manage
20   the program. Costs for personnel may be included as part of the
21   department's administrative or operational costs.
22   § 12104.    Grant fund eligibility.
23      (a)     Eligible applicants.--An entity that meets the following
24   criteria shall be eligible to apply for a grant under the
25   program:
26            (1)   The primary business, measured as being greater than
27      or equal to 50% of the entity's previous year's annual
28      revenue, is from the sale of staple and perishable food to
29      consumers or direct to retail settings.
30            (2)   The entity operates and provides service in this

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 1      Commonwealth.
 2            (3)   The entity serves customers that live in an
 3      underserved community.
 4            (4)   The entity provides access to affordable, high-
 5      quality fresh produce, meat and dairy products and other
 6      grocery items for shoppers in an underserved community.
 7      (b)   Eligible uses.--An eligible use for grant money includes
 8   any of the following:
 9            (1)   Costs to expand access to Pennsylvania grown or
10      processed produce, dairy and meat products or provide stable
11      market access for Pennsylvania farmers.
12            (2)   Innovative food access technology that assists an
13      existing or new grocery store.
14            (3)   Innovative food access technology that assists the
15      food access efforts of a retail food establishment.
16            (4)   Innovative food access technology or delivery of
17      food to retail that assists the food access efforts of an
18      eligible applicant.
19      (c)   Application review and approval.--The department shall
20   devise, award and administer grants to eligible applicants.
21      (d)   Standards and requirements.--
22            (1)   The department shall establish grant program
23      standards and requirements for a grant program under this
24      chapter and shall transmit notice of the grant program
25      standards and requirements to the Legislative Reference
26      Bureau for publication in the next available issue of the
27      Pennsylvania Bulletin.
28            (2)   Grant program standards and requirements shall:
29                  (i)    Establish eligibility standards for applicants.
30                  (ii)   Describe the objectives of the grant program,

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 1            which shall be consistent with this chapter.
 2                  (iii)    Establish caps, limits and restrictions with
 3            respect to grant amounts.
 4                  (iv)    Establish an application process and timetable.
 5                  (v)    Present the criteria under which grant
 6            applications shall be evaluated by the department.
 7                  (vi)    Establish a timetable within which the
 8            department shall award or disapprove a completed grant
 9            application.
10                  (vii)    Establish procedures by which the department
11            shall verify expenditures of grant money by a grant
12            recipient.
13      (e)     Disposition of grants.--
14            (1)   The department may require a written agreement
15      describing the terms and conditions of the grant.
16            (2)   The department may establish criteria under which
17      the secretary may demand the return of all or a portion of
18      the grant money.
19            (3)   The secretary may approve a grant in less than a
20      requested amount. The secretary may also impose restrictions
21      or special conditions upon the issuance of a grant.
22            (4)   The secretary shall ensure that the grant money
23      awarded under this chapter is geographically disbursed
24      throughout this Commonwealth.
25   § 12105.    Grant money.
26      The Fresh Food Financing Initiative Restricted Account is
27   established in the General Fund and shall be used exclusively
28   for the program in accordance with this chapter. Grants may only
29   be awarded to the extent money is appropriated by the General
30   Assembly. In addition to money appropriated to the department

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1   for the program, the department may also accept other revenue,
2   including Federal appropriations, for deposit into the
3   restricted account for the sole purpose of awarding grants and
4   administering the program.
5      Section 2.   This act shall take effect immediately.




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