An Act To Support School Nutrition and Expand the Local Foods Economy
Maine Legislature, Session 126, LD 1431
Committee: Education and Cultural Affairs
Sponsors: JOHNSON, HICKMAN, CRAVEN, HASKELL, JACKSON, LACHOWICZ, MILLETT, DILL, HUBBELL, KENT, KORNFIELD, MAKER, POULIOT, RANKIN
Amends: 7 MRSA §306-A, 7 MRSA §310, 20-A MRSA §6602

Legislative Document 
No. 1431 
S.P. 517 
In Senate, April 23, 2013 
An Act To Support School Nutrition and Expand the Local Foods 
Economy 
(EMERGENCY) 
Reference to the Committee on Education and Cultural Affairs suggested and ordered 
printed. 
DAREK M. GRANT 
Secretary of the Senate 
Presented by Senator JOHNSON of Lincoln. 
Cosponsored by Representative HICKMAN of Winthrop and 
Senators: CRAVEN of Androscoggin, HASKELL of Cumberland, JACKSON of Aroostook, 
LACHOWICZ of Kennebec, MILLETT of Cumberland, Representatives: DILL of Old Town, 
HUBBELL of Bar Harbor, KENT of Woolwich, KORNFIELD of Bangor, MacDONALD of Boothbay, 
MAKER of Calais, McCABE of Skowhegan, McCLELLAN of Raymond, POULIOT of Augusta, 
RANKIN of Hiram. 
Preamble. Two thirds of both Houses of the Legislature deeming it necessary in 
accordance with the Constitution of Maine, Article IX, Section 14 to authorize the 
issuance of bonds on behalf of the State of Maine to provide funds as described in this 
Act, 
Emergency preamble. Whereas, acts and resolves of the Legislature do not 
become effective until 90 days after adjournment unless enacted as emergencies; and 
Whereas, in order to take advantage of locally grown food supplies in school food 
service programs, this legislation should take effect immediately in order to take 
maximum advantage of this year's growing season; and 
Whereas, in the judgment of the Legislature, these facts create an emergency within 
the meaning of the Constitution of Maine and require the following legislation as 
immediately necessary for the preservation of the public peace, health and safety; now, 
therefore, 
Be it enacted by the People of the State of Maine as follows: 
PART A 
Sec. A-1.  7 MRSA §306-A, sub-§2, as enacted by PL 1999, c. 72, §5, is 
amended to read: 
2.  Fund operation.  The commissioner shall utilize the agricultural development 
fund to: 
A.  Provide grants to individuals, firms or organizations to conduct market research 
or to undertake market promotion activities for the purpose of expanding existing 
markets and developing new markets for state agricultural products; and 
B.  Test and demonstrate new technologies related to the production, storage and 
processing of state agricultural commodities.; and 
C.  Provide phase-1 local foods grants under section 310, subsection 1 to up to 12 
applicants to conduct market feasibility studies in different regions of the State to 
identify the availability of fresh, minimally processed foods.  Grant applicants must 
demonstrate expertise related to the subject of the study and the capacity to create a 
local food hub plan and to implement such a plan if selected for a phase-2 local food 
hub grant; and 
D.  Provide phase-2 local food hub grants under section 310, subsection 2 to up to 10 
applicants for the purpose of establishing local food hubs. 
Sec. A-2.  7 MRSA §310 is enacted to read: 
§310.  Local food hub grants 
The commissioner shall issue grants for the purpose of marketing studies and the 
development and operation of food hubs to connect and enhance relationships between 
food producers in the State and public school food service programs. 
1.  Phase-1 local foods grants.  The commissioner shall award up to 12 grants of 
between $20,000 and $30,000 to applicants who demonstrate the capacity to conduct 
market feasibility studies in different regions of the State to identify the availability or 
potential availability of fresh, minimally processed locally produced foods.  Applicants 
must demonstrate expertise related to the subject of the study and the capacity to create 
and implement a local food hub plan if selected for a phase-2 local food hub grant.  
Applicants must demonstrate a commitment to recognition of the requirements of the 
federal Department of Agriculture with regard to meals provided in schools and a 
willingness to participate in training programs developed by the Department of Education 
under Title 20-A, section 6602, subsection 13. 
2.  Phase-2 local food hub grants.  The commissioner shall award up to 10 phase-2 
local food hub grants to applicants for the purpose of establishing local food hubs.  
Proposals for grants under this subsection must include plans based on the market studies 
completed under subsection 1.  A proposal must demonstrate: 
A.  That the proposal is based on sound business and financial principles; 
B.  That the state funds awarded under the grant will be matched by funds from 
nonstate sources in an amount equal to at least the amount of the grant award under 
this subsection; 
C.  That the applicant has the capacity to perform the functions of locating and 
obtaining food from local growers and fisheries and the capacity to handle the 
logistics of supplying and delivering local foods as ordered by local schools; 
D.  That the applicant has the capacity to provide minimal food processing of locally 
sourced food, including washing, preparing for storage and storage of food, including 
cold storage and freezer storage; 
E.  That the applicant has knowledge of health-oriented food production methods to 
maintain nutritional value and minimize food contaminants; 
F.  That the applicant will exercise sustainable waste management practices, 
including composting of food waste and minimal use of disposable nonreusable 
packaging materials; and 
G.  That the applicant has the ability to plan and engage food producers to plant or 
otherwise scale capacity to meet anticipated food service demand. 
3.  Consultation.  The commissioner shall consult with the Department of Marine 
Resources and the Department of Education regarding the awarding of grants under this 
section. 
4.  Exception.  Grants awarded under this section are not subject to the requirements 
of section 306-A, subsection 3, paragraph B. 
Sec. A-3.  20-A MRSA §6602, sub-§12, as enacted by PL 2001, c. 447, §1, is 
amended to read: 
12.  Local Produce Fund.  The Local Produce Fund is established within the 
Department of Education.  The fund is authorized to receive revenue from public and 
private sources.  The fund must be held separate and apart from all other money, funds 
and accounts.  Any balance remaining in the fund at the end of the fiscal year must be 
carried forward to the next fiscal year.  The fund must be used to match $1 for every $3 a 
school administrative unit pays for produce or minimally processed foods purchased 
directly from a farmer or farmers' cooperative in the State, to a maximum state 
contribution of $1,000 or $2,000 if the school administrative unit sends a food service 
employee to local foods training administered by the department under subsection 13.  At 
the end of the fiscal year, the school administrative unit may provide the department with 
receipts documenting purchases pursuant to this subsection during that year.  For 
purposes of this subsection, "minimally processed" means only the washing, cleaning, 
trimming, drying, sorting and packaging of food items or a combination of those 
activities.  Reimbursement or partial reimbursement to school administrative units may 
only be made up to the amount available in the fund.  Failure to reimburse does not 
constitute an obligation on behalf of the State to a school administrative unit. 
Sec. A-4.  20-A MRSA §6602, sub-§13 is enacted to read: 
13.  Local foods training.  The department shall administer a program to encourage 
and expand the use of local foods in school food service programs.  The program must: 
A.  Provide competitive grants for 6 regional training programs to provide training 
without cost for local school food service program providers to encourage and 
expand the use of local foods in school food service programs.  The training 
programs must emphasize practical training for food preparers, including creative and 
effective cooking skills using local fresh foods and local food procurement skills; 
B.  Foster collaboration between school food service personnel throughout the State; 
C.  Facilitate and encourage the use of local food hubs developed by the Department 
of Agriculture under Title 7, section 310; 
D.  Provide guidance to schools in the use of local food products and the nutritional 
attributes of local foods and provide strategies for encouraging maximum knowledge 
and acceptance of the nutritional value of locally produced food by students and 
communities; and 
E.  Provide for the development of an annual competitive skill-oriented food service 
award based on criteria developed by the department emphasizing creative and 
effective use of local food products. 
Sec. A-5.  Appropriations and allocations.  The following appropriations and 
allocations are made. 
AGRICULTURE, CONSERVATION AND FORESTRY, DEPARTMENT OF 
Division of Agricultural Resource Development 0833 
Initiative: Provides one-time funding for awards to up to 12 applicants to conduct market 
feasibility studies related to availability of locally produced and minimally processed 
food. 
EDUCATION, DEPARTMENT OF  
Local Produce Fund N148 
Initiative: Provides ongoing funds to increase the cap on the amount that the State 
matches for the acquisition of local foods by a school administrative district if the district 
sends a food service employee for training in the acquisition and use of local foods. 
PART B 
Sec. B-1.  Authorization of bonds.  The Treasurer of State is authorized, under 
the direction of the Governor, to issue bonds in the name and on behalf of the State in an 
GENERAL FUND 
2013-14
2014-15
All Other 
$250,000
$0
GENERAL FUND TOTAL 
$250,000
$0
AGRICULTURE, CONSERVATION AND 
FORESTRY, DEPARTMENT OF 
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$250,000
$0
DEPARTMENT TOTAL - ALL FUNDS 
$250,000
$0
GENERAL FUND 
2013-14
2014-15
All Other 
$120,000
$120,000
GENERAL FUND TOTAL 
$120,000
$120,000
EDUCATION, DEPARTMENT OF  
DEPARTMENT TOTALS 
2013-14
2014-15
GENERAL FUND 
$120,000
$120,000
DEPARTMENT TOTAL - ALL FUNDS 
$120,000
$120,000
SECTION TOTALS 
2013-14
2014-15
GENERAL FUND 
$370,000
$120,000
SECTION TOTAL - ALL FUNDS 
$370,000
$120,000
amount not exceeding $12,000,000 for the purposes described in section 5 of this Part.  
The bonds are a pledge of the full faith and credit of the State.  The bonds may not run for 
a period longer than 10 years from the date of the original issue of the bonds. 
Sec. B-2.  Records of bonds issued; Treasurer of State. The Treasurer of 
State shall ensure that an account of each bond is kept showing the number of the bond, 
the name of the successful bidder to whom sold, the amount received for the bond, the 
date of sale and the date when payable. 
Sec. B-3.  Sale; how negotiated; proceeds appropriated.  The Treasurer of 
State may negotiate the sale of the bonds by direction of the Governor, but no bond may 
be loaned, pledged or hypothecated on behalf of the State.  The proceeds of the sale of the 
bonds, which must be held by the Treasurer of State and paid by the Treasurer of State 
upon warrants drawn by the State Controller, are appropriated solely for the purposes set 
forth in this Part.  Any unencumbered balances remaining at the completion of the project 
in this Part lapse to the Office of the Treasurer of State to be used for the retirement of 
general obligation bonds. 
Sec. B-4.  Interest and debt retirement.  The Treasurer of State shall pay 
interest due or accruing on any bonds issued under this Part and all sums coming due for 
payment of bonds at maturity. 
Sec. B-5.  Disbursement of bond proceeds from General Fund bond issue.  
The proceeds of the sale of the bonds authorized under this Part must be expended as 
designated in the following schedule under the direction and supervision of the agencies 
and entities set forth in this section. 
Provides funds to establish and support local food hub programs to connect local food 
producers with school food service providers and encourage the use of local farm 
products in the public schools. 
Sec. B-6.  Contingent upon ratification of bond issue.  Sections 1 to 5 do not 
become effective unless the people of the State ratify the issuance of the bonds as set 
forth in this Part. 
Sec. B-7.  Appropriation balances at year-end.  At the end of each fiscal year, 
all unencumbered appropriation balances representing state money carry forward.  Bond 
proceeds that have not been expended within 10 years after the date of the sale of the 
bonds lapse to the Office of the Treasurer of State to be used for the retirement of general 
obligation bonds. 
AGRICULTURE, CONSERVATION 
AND FORESTRY, DEPARTMENT OF 
Agricultural Development Fund 
Total 
$12,000,000
Sec. B-8.  Bonds authorized but not issued.  Any bonds authorized but not 
issued within 5 years of ratification of this Part are deauthorized and may not be issued, 
except that the Legislature may, within 2 years after the expiration of that 5-year period, 
extend the period for issuing any remaining unissued bonds for an additional amount of 
time not to exceed 5 years. 
Sec. B-9.  Referendum for ratification; submission at election; form of 
question; effective date.  This Part must be submitted to the legal voters of the State at 
a statewide election held in the month of November following passage of this Act.  The 
municipal officers of this State shall notify the inhabitants of their respective cities, towns 
and plantations to meet, in the manner prescribed by law for holding a statewide election, 
to vote on the acceptance or rejection of this Part by voting on the following question: 
"Do you favor a $12,000,000 bond issue to provide funding to the 
Agricultural Development Fund to establish and support local food hub 
programs to connect local food producers with school food service 
providers and encourage the use of local farm products in the public 
schools?" 
The legal voters of each city, town and plantation shall vote by ballot on this question 
and designate their choice by a cross or check mark placed within a corresponding square 
below the word "Yes" or "No."  The ballots must be received, sorted, counted and 
declared in open ward, town and plantation meetings and returns made to the Secretary of 
State in the same manner as votes for members of the Legislature.  The Governor shall 
review the returns.  If a majority of the legal votes are cast in favor of this Part, the 
Governor shall proclaim the result without delay and this Part becomes effective 30 days 
after the date of the proclamation. 
The Secretary of State shall prepare and furnish to each city, town and plantation all 
ballots, returns and copies of this Part necessary to carry out the purposes of this 
referendum. 
Emergency clause.  In view of the emergency cited in the preamble, this 
legislation takes effect when approved, except as otherwise indicated. 
SUMMARY 
This bill requires the Department of Agriculture, Conservation and Forestry and the 
Department of Education to administer programs to support the expansion and 
coordination of the use of fresh local foods in public school food service programs.  The 
Department of Agriculture, Conservation and Forestry is directed to provide grants in 2 
phases for the identification of local food suppliers and the establishment of local food 
hubs to connect local food producers with public school food service programs and 
facilitate the operation of local food programs in schools. The bill also directs the 
Department of Education to develop and support local food training programs for public 
school food service personnel and facilitate the use of local food hubs to expand the use 
of local foods in schools. 
The bill also provides a bond issue in the amount of $12,000,000 to be used to 
develop up to 10 local food hubs.