(a) There is a Maryland Farm-to-School Meal Grant Fund.

(b) The Department, in coordination with the Department of Agriculture, shall administer the Fund.

(c) (1) The Fund is a special, nonlapsing fund that is not subject to § 7-302 of the State Finance and Procurement Article.

(2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

(d) The Fund consists of:

(1) Money appropriated in the State budget to the Fund; and

(2) Any other money from any other source accepted for the benefit of the Fund.

(e) (1) The Fund shall be used to award grants to eligible school districts to implement the Maryland Farm-to-School Meal Grant Pilot Program.

(2) A local school district is eligible to receive a grant award from the Fund if the local school district operates reimbursable federal nutrition programs.

(f) (1) The Department shall award grants from the Fund in accordance with this section to eligible local school districts in an amount equivalent to 20 cents for each meal that the school district expects to offer that will include a local food component.

(2) The local school district may determine the meals, participating schools, and time frame for which the local school district may include a local food component.

(3) A local school district may use grant money for the purchase, processing, procurement, staffing, or infrastructure investments needed to meet the number of meals with a local food component.

(g) In awarding grants under this section, the Department shall prioritize local school districts that:

(1) Demonstrate how meal reimbursements would support the development, cultivation, and longstanding commitment to the incorporation of local food components into school meals; and

(2) Demonstrate arrangements that support minority or socially disadvantaged producers, processors, distributors, or businesses.

(h) (1) On or before July 1, 2023, and July 1, 2024, in accordance with § 2-1257 of the State Government Article, the Department shall submit an interim report to the General Assembly that provides an evaluation of the pilot program.

(2) On or before July 1, 2025, the Department shall submit a final report, in accordance with § 2-1257 of the State Government Article, to the General Assembly on the pilot program, including a recommendation on whether or not the pilot program should be continued.