HB 764 — An Act amending Title 3 (Agriculture) of the Pennsylvania Consolidated Statutes, providing for the Fresh Food Financing Initiative; establishing the Fresh Food Financing Initiative Restricted Account; and imposing duties on the Department of Agriculture.

PRINTER'S NO.   788

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 764
                                                   Session of
                                                     2025

     INTRODUCED BY BURGOS, SCOTT, CEPHAS, DAVIDSON, MADDEN, FREEMAN,
        KENYATTA, MAYES, GUZMAN, SAMUELSON, WAXMAN, WEBSTER, RABB,
        SANCHEZ, MALAGARI, HILL-EVANS, GIRAL, HOWARD, NEILSON,
        HANBIDGE, CEPEDA-FREYTIZ, ABNEY, FLEMING, BOROWSKI, PASHINSKI
        AND KAZEEM, MARCH 3, 2025

     REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS,
        MARCH 3, 2025


                                      AN ACT
 1   Amending Title 3 (Agriculture) of the Pennsylvania Consolidated
 2      Statutes, providing for the Fresh Food Financing Initiative;
 3      establishing the Fresh Food Financing Initiative Restricted
 4      Account; and imposing duties on the Department of
 5      Agriculture.
 6      The General Assembly of the Commonwealth of Pennsylvania
 7   hereby enacts as follows:
 8      Section 1.    Title 3 of the Pennsylvania Consolidated Statutes
 9   is amended by adding a part to read:
10                                    PART XI
11                                 FOOD SECURITY
12   Chapter
13      121.    Fresh Food Financing Initiative
14                                  CHAPTER 121
15                      FRESH FOOD FINANCING INITIATIVE
16   Sec.
17   12101.    Scope of chapter.
 1   12102.   Purpose.
 2   12103.   Definitions.
 3   12104.   Establishment.
 4   12105.   Administration of program.
 5   12106.   Grant fund eligibility.
 6   12107.   Regulations.
 7   12108.   Grant money.
 8   § 12101.   Scope of chapter.
 9      This chapter relates to the Fresh Food Financing Initiative.
10   § 12102.   Purpose.
11      The purpose of this chapter is to strengthen local food
12   systems and increase market opportunities for Pennsylvania
13   farmers by providing grant money for:
14            (1)   A State program designed to increase the
15      availability of fresh and nutritious food, known as the
16      Pennsylvania Fresh Food Financing Initiative, that will
17      stimulate capital, job creation and economic vitality.
18            (2)   Construction, rehabilitation or expansion of grocery
19      stores, farmers' markets or retail food establishments in
20      underserved and low-income or moderate-income communities in
21      this Commonwealth.
22   § 12103.   Definitions.
23      The following words and phrases when used in this chapter
24   shall have the meanings given to them in this section unless the
25   context clearly indicates otherwise:
26      "Black, Indigenous and person of color communities" or "BIPOC
27   communities."    Municipalities with:
28            (1)   a Black, Indigenous and person of color population
29      of 50% or higher; or
30            (2)   a Black, Indigenous and person of color population

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 1      greater than 700 people.
 2      "Farmers' market."    A building, structure or place owned,
 3   leased or otherwise in possession by a person, municipal
 4   corporation or public or private organization, used or intended
 5   to be used by two or more farmers or an association of farmers
 6   for the purpose of selling agricultural commodities directly to
 7   consumers and which is physically located within this
 8   Commonwealth.
 9      "Food access organization."     A nonprofit organization with
10   expertise in improving access to food in underserved
11   communities.
12      "Grocery store."     A for-profit or not-for-profit self-service
13   retail establishment that primarily sells meat, seafood, fruits,
14   vegetables, dairy products, dry groceries, household products
15   and sundries.
16      "Low-income or moderate-income community."      A census tract as
17   reported in the most recently completed Federal decennial census
18   published by the United States Census Bureau that has a poverty
19   rate of at least 20% or in which the median family income does
20   not exceed 80% of the greater of the Statewide or metropolitan
21   median family income.
22      "Program."   The Pennsylvania Fresh Food Financing Initiative
23   established under section 12104 (relating to establishment).
24      "Regional anchor supermarket."       A company that owns multiple
25   grocery stores within a given region.
26      "Retail food establishment."     As defined under section 5702
27   (relating to definitions).
28      "Underserved community."    A census tract determined to be an
29   area with low grocery store access by either the United States
30   Department of Agriculture as identified in the Food Access

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 1   Research Atlas or through a methodology that has been adopted
 2   for use by another governmental entity or food access
 3   organization.
 4      "USDA-designated food desert."          A census tract declared to be
 5   a food desert by the United States Department of Agriculture's
 6   Economic Research Service.
 7   § 12104.    Establishment.
 8      The Pennsylvania Fresh Food Financing Initiative is
 9   established.
10   § 12105.    Administration of program.
11      (a)     Administration.--The program shall be administered by
12   the department. The department may collaborate with the
13   Department of Community and Economic Development to improve food
14   access in this Commonwealth.
15      (b)     Program management.--The department shall develop and
16   establish program guidelines and eligibility criteria to meet
17   the needs of program applicants and the communities served.
18      (c)     Program priority.--
19            (1)   The program shall promote local agricultural
20      products by placing priority on projects producing,
21      aggregating, sourcing or selling Pennsylvania agricultural
22      commodities, including the department's Pennsylvania
23      Preferred® program, that:
24                  (i)    are located in, owned by or primarily serve
25            BIPOC communities. Eligibility for this prioritization
26            shall be determined by the Center for Rural
27            Pennsylvania's municipal data;
28                  (ii)    promote supplier diversity and, where possible,
29            increase business opportunities for businesses recognized
30            by the Department of General Services as verified as a

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 1            small diverse business or a small veteran business; or
 2                  (iii)   are located in or serve a USDA-designated food
 3            desert.
 4            (2)   For regional anchor supermarket projects, those with
 5      matching funds under subsection (e) shall be prioritized.
 6      (d)     Project class.--The department shall make grants
 7   available in the following classes:
 8            (1)   Regional anchor supermarkets.
 9            (2)   Grocery stores.
10            (3)   Retail food establishments.
11      (e)     Matching funds.--Grants in an amount not to exceed 15%
12   of the funding for any of the project classes established under
13   subsection (d) shall be awarded to qualifying applicants
14   selected to receive the awards for the purposes of capital
15   projects. Grants for capital projects must be matched by private
16   money in an amount equal to the State grant.
17      (f)     Administrative or operational costs.--No more than 10%
18   of the funding under section 12108 (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   § 12106.    Grant fund eligibility.
23      (a)     Eligible applicants.--A for-profit, nonprofit or
24   cooperative entity that meets the following criteria shall be
25   eligible to apply for a grant under the 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 a low-
 3      income or moderate-income community.
 4            (4)   The entity provides access to affordable, high-
 5      quality fresh produce, meat and dairy products and other
 6      grocery items for low-to-moderate income shoppers.
 7            (5)   Eligible projects are supported by the community as
 8      determined by the department using maps, data tools and other
 9      forms of market research.
10      (b)   Eligible uses.--An eligible use for grant money includes
11   any of the following:
12            (1)   Equipment purchases that improve the availability
13      and quality of fresh produce, meat and dairy products and
14      other grocery items.
15            (2)   Innovative food access technology that assists an
16      existing or new grocery store.
17            (3)   Innovative food access technology that assists the
18      food access efforts of a retail food establishment.
19            (4)   Innovative food access technology or delivery of
20      food to retail that assists the food access efforts of an
21      eligible applicant.
22      (c)   Application review and approval.--The department shall
23   devise, award and administer grants to eligible applicants.
24      (d)   Standards and requirements.--
25            (1)   The department shall establish grant program
26      standards and requirements for a grant program under this
27      chapter and shall transmit notice of the grant program
28      standards and requirements to the Legislative Reference
29      Bureau for publication in the next available issue of the
30      Pennsylvania Bulletin.

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 1            (2)   Grant program standards and requirements must do the
 2      following:
 3                  (i)    Establish eligibility standards for applicants.
 4                  (ii)    Describe the objectives of the grant program,
 5            which shall be consistent with this chapter.
 6                  (iii)    Establish caps, limits and restrictions with
 7            respect to grant amounts.
 8                  (iv)    Establish an application process and timetable.
 9                  (v)    Present the criteria under which grant
10            applications shall be evaluated by the department.
11                  (vi)    Establish a timetable within which the
12            department shall award or disapprove a completed grant
13            application.
14                  (vii)    Establish procedures by which the department
15            shall verify expenditures of grant money by a grant
16            recipient.
17      (e)     Limitation on grants.--
18            (1)   Grants may only be awarded to the extent money is
19      appropriated by the General Assembly.
20            (2)   The secretary may approve a grant in less than a
21      requested amount. The secretary may also impose restrictions
22      or special conditions upon the issuance of a grant.
23      (f)     Disposition of grants.--
24            (1)   The department may require a written agreement
25      describing the terms and conditions of the grant.
26            (2)   The department may establish criteria under which
27      the secretary may demand the return of all or a portion of
28      the grant money.
29   § 12107.    Regulations.
30      The department may promulgate rules and regulations to

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 1   administer and enforce this chapter.
 2   § 12108.    Grant money.
 3      (a)     Establishment of account.--The Fresh Food Financing
 4   Initiative Restricted Account is established in the General Fund
 5   and shall be used exclusively for the program in accordance with
 6   this chapter. The money in the account is appropriated on a
 7   continuing basis to the department for the purposes of this
 8   chapter.
 9      (b)     Supplements to account.--In addition to State money
10   appropriated to the department for the program, the department
11   may also accept gifts, donations, legacies and other revenues,
12   including Federal appropriations, for deposit into the
13   restricted account.
14      Section 2.    This act shall take effect in 60 days.




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