S2874-118

1. Short title This Act may be cited as the Fresh Produce Procurement Reform Act of 2023.

2. Contracts for fresh produce In this section: The term beginning farmer has the meaning given the term beginning farmer or rancher in section 343(a) of the Consolidated Farm and Rural Development Act (7 U.S.C. 1991(a)). The term eligible entity means an entity that— is— a grower, packer, distributor, or food-hub; a nonprofit organization; or a cooperative; and is located in the State or locality in which the produce shall be distributed; or has demonstrated experience distributing to that State or locality. The term family farm has the meaning given the term in section 761.2 of title 7, Code of Federal Regulations (as in effect on December 30, 2007). The term program means the program established under subsection (b). The term qualifying entity means a nonprofit food bank, a nonprofit food pantry, a nonprofit school, a nonprofit child or senior care center, a nonprofit youth-serving community based organization, a Tribal organization, or a public agency that— participates in a nutrition program administered by the Secretary, including— the school lunch program established under the Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et seq.); the summer food service program established under section 13 of that Act (42 U.S.C. 1761); the child and adult care food program established under section 17 of that Act (42 U.S.C. 1766); the food distribution program on Indian reservations established under section 4(b) of the Food and Nutrition Act of 2008 (7 U.S.C. 2013(b)); the commodity supplemental food program established under section 4 of the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note; Public Law 93–86); and the emergency food assistance program established pursuant to the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.); or does not participate in a nutrition program described in subparagraph (A) but has demonstrated experience in serving the needs of vulnerable populations facing food and nutrition insecurity. The term Secretary means the Secretary of Agriculture, acting through the Administrator of the Agricultural Marketing Service. The term socially disadvantaged farmer has the meaning given the term socially disadvantaged farmer or rancher in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)). The term State means— a State; the District of Columbia; an Indian Tribe (as defined in section 4 of the Indian Self-Determination and Education Assistance Act (25 U.S.C. 5304)); and a territory or possession of the United States. The term veteran farmer has the meaning given the term veteran farmer or rancher in section 2501(a) of the Food, Agriculture, Conservation, and Trade Act of 1990 (7 U.S.C. 2279(a)). Not later than 90 days after the date of enactment of this Act, the Secretary, in consultation with the Administrator of the Food and Nutrition Service, shall establish a program under which the Secretary shall enter into contracts with eligible entities to procure fresh produce (excluding legumes) for distribution to qualifying entities that serve individuals at risk of food and nutrition insecurity. The purposes of the program are— to increase access of low-income households to a wide variety of fresh produce; to directly connect produce producers and distributors to nonprofit emergency feeding entities; to increase the procurement of fresh produce by the Federal Government; to strengthen the local and regional food supply chain; to reduce on-farm food loss caused by a market disruption; and to model nimbleness and responsiveness in and out of emergency situations relating to food insecurity, nutrition security, and disruptions to the food supply chain. In selecting eligible entities with which to enter into contracts under the program, the Secretary shall consider whether the eligible entity— has demonstrated experience in fresh produce supply chain distribution; is a small business concern (as defined in section 3 of the Small Business Act (15 U.S.C. 632)); holds a PACA license, relevant food safety certifications, and any other relevant licenses or certifications, as determined by the Secretary; sources from small- and medium-sized growers, and local and regional produce, as geographically and seasonally feasible; has demonstrated relationships with at least 2 qualifying entities, including a qualifying entity that does not receive resources through the emergency food assistance program established pursuant to the Emergency Food Assistance Act of 1983 (7 U.S.C. 7501 et seq.); and offers the Secretary a price determined by the Secretary to be the overall best value without limiting evaluation factors to lowest price or highest technical rating. In selecting eligible entities with which to enter into contracts under the program, the Secretary shall give priority to eligible entities that— grow the produce that will be provided and distributed to qualifying entities; are, or source from— beginning farmers; small or mid-sized farms that are structured as family farms; or socially disadvantaged farmers, including women-owned and veteran-owned eligible entities; and are able to deliver to areas most in need of fresh produce, as determined by the Secretary. The period of performance for a contract entered into under the program shall be— not less than 90 days; and not more than 120 days. The price paid by the Secretary under a contract entered into under the program shall be inclusive of all transportation and distribution costs associated with delivering fresh produce to the final destination of the applicable qualifying entity. A contract entered into under the program shall require that the fresh produce procured for distribution to a qualifying entity meets the following requirements: The fresh produce is grown in the United States. The fresh produce includes locally grown produce as geographically and seasonally feasible, as determined by the Secretary. Not fewer than 7 varieties of fresh produce are distributed. The variety of fresh produce distributed is consistent with the most recent Dietary Guidelines for Americans published under section 301 of the National Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 5341). The fresh produce includes specialty crops of cultural importance to the recipients of the fresh produce, as determined by the Secretary, in consultation with the distributing qualifying entity. Under a contract entered into under the program, the Secretary shall— make a payment to the eligible entity of not less than 30 percent of the contract price in advance of the first distribution of produce under the contract; and after the eligible entity provides documentation that the payment under subparagraph (A) has been spent, pay the remaining amount under the contract in 2 disbursements of equal value. The Secretary shall— maintain a list of qualifying entities that participate in the program; and conduct outreach to ensure that qualifying entities are made aware of the program. In carrying out the program each fiscal year, the Secretary shall enter into contracts with eligible entities in a manner that ensures that the total value of contracts entered into in each State is proportionate to the number of households and individuals living in poverty within the State, as determined by the Secretary. The Secretary shall award multiple contracts under the program to eligible entities located in or serving each region of the Food and Nutrition Service to provide opportunities to a broad range of producers and eligible entities. In carrying out the program, the Secretary shall establish a process— to determine the areas most in need of produce provision under the program, including rural areas, the territories and possessions of the United States, and areas under the jurisdiction of a Tribal government; and to ensure that those areas are served by the program. The Secretary shall provide— information to assist small farmers, beginning farmers, veteran farmers, and socially disadvantaged farmers in obtaining food safety certifications; and financial assistance to cover the associated costs of necessary changes and upgrades to practices and equipment to improve food safety. The Secretary shall provide technical assistance to eligible entities participating in the program with respect to— the contract terms and expectations applicable to those eligible entities; best practices for the distribution of produce and expectations of the Secretary relating to distribution; and food safety certification. Not later than 1 year after the date of enactment of this Act, the Secretary shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that describes the activities carried out under the program, including, within a State— the counties and percentage of counties served; the number of produce packages provided; the quantity and variety of fresh produce distributed; the number of farms from which produce is sourced, including the size of those farms; the percentage of fresh produce procured locally and regionally; and any other data determined relevant by the Secretary. Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall submit to the Committee on Agriculture, Nutrition, and Forestry of the Senate and the Committee on Agriculture of the House of Representatives a report that evaluates the effectiveness of the program with respect to the purposes of the program described in subsection (c).