SB3077 EnrolledLRB103 36919 JAG 67033 b

1    AN ACT concerning agriculture.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the Local
5Food Infrastructure Grant Act.
6    Section 5. Definitions. In this Act:
7    "Department" means the Department of Agriculture.
8    "Director" means the Director of Agriculture.
9    "Fund" means the Local Food Infrastructure Grant Fund.
10    "Grant administrator" means the Department or a nonprofit
11organization that is exempt from taxation under Section
12501(c)(3) of the Internal Revenue Code, that represents
13farmers, and that has entered into a subcontract with the
14Department under Section 15 to administer the grant.
15    "Grantee" means the person or entity to whom a grant is
16made from the Fund.
17    "Lender" means a federal or State chartered bank, a
18federal land bank, a production credit association, a bank for
19cooperatives, a federal or State chartered savings and loan
20association, a federal or State chartered building and loan
21association, a small business investment company, or any other
22institution qualified within this State to originate and
23service loans, including, but not limited to, an insurance



SB3077 Enrolled- 2 -LRB103 36919 JAG 67033 b

1company, a credit union, and a mortgage loan company.
2    "Lender" includes a wholly owned subsidiary of a
3manufacturer, seller, or distributor of goods or services that
4makes loans to businesses or individuals, commonly known as a
5captive finance company.
6    "Liability" includes, but is not limited to, accounts
7payable; notes or other indebtedness owed to any source;
8taxes; rent; amounts owed on real estate contracts or real
9estate mortgages; judgments; accrued interest payable; and any
10other liability.
11    "State" means the State of Illinois.
12    "Underserved farmer" means a farmer or rancher who meets
13the United States Department of Agriculture criteria to be
14designated as a beginning farmer, socially disadvantaged
15farmer, veteran farmer, or limited resource farmer.
16    "Underserved community" means a community that has limited
17or no access to resources or that is otherwise disenfranchised
18as determined by the Department. These communities may include
19people who are socioeconomically disadvantaged; people with
20limited English proficiency; geographically isolated or
21educationally disenfranchised people; people of color as well
22as ethnic and national origin minorities; women and children;
23individuals with disabilities and others with access and
24functional needs; and seniors.
25    "Value-added agricultural product" means any farm or
26agricultural product or by-product that has its value enhanced



SB3077 Enrolled- 3 -LRB103 36919 JAG 67033 b

1through processing in Illinois, packaging in Illinois, or any
2other activity in Illinois.
3    Section 10. Findings.
4    (a) The General Assembly finds that the following
5conditions exist in this State:
6        (1) Small fruit, vegetable, and livestock farmers are
7    vital to the health and wealth of Illinois communities,
8    yet Illinois does not currently have infrastructure in
9    place to support local food farmers or to feed Illinois
10    communities.
11        (2) An estimated 95% of the food consumed in Illinois
12    is purchased from outside of our borders, resulting in the
13    export of billions of food dollars outside our State
14    rather than the enhancement of our local food economies.
15        (3) A shift of just 10% toward local food purchasing
16    by Illinois individuals, families, schools, institutions,
17    and State agencies could generate billions in economic
18    growth for our State.
19        (4) For Illinois families, businesses, schools, and
20    institutions to shift their purchasing practices, Illinois
21    must invest in supporting critical local food
22    infrastructure needed to bolster processing, aggregation,
23    and distribution of local food.
24    (b) The General Assembly determines and declares that
25there exist conditions in the State that require the



SB3077 Enrolled- 4 -LRB103 36919 JAG 67033 b

1Department to issue grants on behalf of the State for the
2development of local food processing, aggregation, and
4    Section 15. Local Food Infrastructure Grant Program.
5Funding appropriated for the Local Food Infrastructure Grant
6Program shall be allocated to the Department. The Department
7may enter into a subcontract agreement with a nonprofit
8organization that is exempt from taxation under Section
9501(c)(3) of the Internal Revenue Code and that represents
10farmers in order to administer the grant program established
11under this Act, so long as the administration of the grant
12program by the grant administrator adheres to the requirements
13of this Act, including the following requirements:
14        (1) Eligible grant applicants shall include any one or
15    more of the following entities that store, process,
16    package, aggregate, or distribute value-added agricultural
17    products or plan to do so:
18            (A) Illinois farms with less than 50 employees;
19            (B) Illinois cooperatives with less than 50
20        employees;
21            (C) Illinois processing facilities with less than
22        50 employees;
23            (D) Illinois food businesses with less than 50
24        employees;
25            (E) Illinois food hubs with less than 50



SB3077 Enrolled- 5 -LRB103 36919 JAG 67033 b

1        employees;
2            (F) Illinois nonprofit organizations; and
3            (G) units of local government in Illinois.
4        Grant proposals may be submitted to the grant
5    administrator by individuals, groups, partnerships, or
6    collaborations. A recipient of grant funding under this
7    Act whose project is funded in a grant cycle is not
8    eligible to apply for grant funding under this Act for
9    that project in the next funding cycle nor is any other
10    person eligible to apply for grant funding for that
11    project in the next funding cycle. However, any person may
12    apply for grant funding under this Act for such project in
13    any subsequent funding cycles.
14        (2) Grant awards shall be available for collaborative
15    and individual projects at the following award amounts:
16            (A) for a collaborative project, a grant of $1,000
17        to $250,000 may be awarded; and
18            (B) for an individual project, a grant of $1,000
19        to $75,000 may be awarded.
20        (3) All funded projects must show comparable
21    investments by the recipient in the development and
22    progression of the project being funded or must show
23    evidence of being a high need project. The recipient's
24    comparable investments may be provided in cash,
25    cash-equivalent investments, bonds, irrevocable letters of
26    credit, time and labor, or any combination of those



SB3077 Enrolled- 6 -LRB103 36919 JAG 67033 b

1    matching fund sources. Acceptable providers of matching
2    funds include, but are not limited to, commercial,
3    municipal, and private lenders; leasing companies; and
4    grantors of funds. A project may be designated as a high
5    need project if at least one of the following conditions
6    is met:
7            (A) the project can demonstrate that it is filling
8        a gap in critical infrastructure for its region or
9        community that is unlikely to be resolved without the
10        grant investment; or
11            (B) the project can demonstrate that the grant
12        investment will primarily serve underserved farmers or
13        underserved communities.
14        (4) All grant funding provided under this Act must be
15    used for purchasing, leasing to own, renting, building, or
16    installing infrastructure related to the processing,
17    storage, aggregation, or distribution of value-added
18    agricultural products. Allowable expenses include, but are
19    not limited to:
20            (A) equipment used in the production of
21        value-added agricultural products;
22            (B) milling or pressing equipment;
23            (C) creamery or milk product processing and
24        packaging equipment;
25            (D) food hub development or expansion;
26            (E) cooler walls and refrigeration units;



SB3077 Enrolled- 7 -LRB103 36919 JAG 67033 b

1            (F) grading, packing, labeling, packaging, or
2        sorting equipment;
3            (G) refrigerated trucks;
4            (H) custom exempt mobile slaughter units and
5        livestock processing equipment;
6            (I) agroforestry processing equipment; and
7            (J) local fish and shrimp processing.
8        Grant funding provided under this Act may not be used
9    for labor, marketing, or promotion or for the costs of
10    production agriculture, such as costs for the purchase of
11    hoop houses, irrigation, or other infrastructure related
12    to starting or increasing agricultural production.
13    Section 17. Local Food Infrastructure Grant Fund. The
14Local Food Infrastructure Grant Fund is created as a special
15fund in the State treasury. Appropriations and moneys from any
16public or private source may be deposited into the Fund. The
17Fund shall be used for the purposes of this Act. Repayments of
18grants made under this Section shall be deposited into the
19Fund. A maximum of 10% of all funds appropriated through the
20Fund may be used by the Department for the costs of
21administering the grant within the Department or the cost of
22subcontracting a grant administrator.
23    Section 20. Program administration.
24    (a) The grant administrator shall create an independent



SB3077 Enrolled- 8 -LRB103 36919 JAG 67033 b

1Local Food Infrastructure Steering Committee to guide the
2implementation and evaluation of the grant program created by
3this Act. The Steering Committee shall be composed of, at a
4minimum, the following members: at least 3 farmers, including
5one specialty crop farmer, one livestock farmer, and one
6farmer of color; one representative from the local food
7processing industry; one representative from a nonprofit
8organization serving farmers of color; one representative from
9a nonprofit organization serving farmers at large; and one
10representative from the Illinois Stewardship Alliance Local
11Food Farmer Caucus so long as the Caucus exists.
12    (b) The Steering Committee's responsibilities shall
13include advising the Department and any other grant
14administrator on the following matters:
15        (1) application requirements and terms of grant
16    agreements;
17        (2) grant criteria and preferences, including
18    additional criteria and preferences to be adopted by the
19    Department by rule;
20        (3) the meaning of the term "collaborative project" to
21    be codified in Department rules;
22        (4) grant review and selection;
23        (5) project reporting requirements for funded
24    projects; and
25        (6) evaluation of program success and adjustment of
26    criteria, requirements, preferences, program



SB3077 Enrolled- 9 -LRB103 36919 JAG 67033 b

1    implementation, and other elements of the grant program as
2    needed to ensure that the grant program meets its intended
3    purpose and complies with this Act.
4    (c) An applicant for grant funding under this Act must, at
5a minimum, be an Illinois resident, as defined by Department
6rule, and provide the names, addresses, and occupations of all
7project owners, the project address, relevant credit and
8financial information (including, but not limited to, assets
9and liabilities), and any other information deemed necessary
10by the grant administrator for review of the grant
11application. A grant award is subject to modification or
12alteration under the condition that the grant award is subject
13to any modifications that may be required by changes in State
14law or rules. The Department shall provide written notice to
15the recipient or, if subcontracting with another grant
16administrator, the other grant administrator of any amendment
17to the Act or rules adopted under the Act and the effective
18date of those amendments.
19    (d) The grant administrator, in reviewing the
20applications, must consider, but is not limited to
21considering, the following criteria:
22        (1) whether the project has a reasonable assurance of
23    increasing the availability and accessibility of Illinois
24    agricultural products among Illinois communities;
25        (2) whether there is an adequate and realistic budget
26    projection; and



SB3077 Enrolled- 10 -LRB103 36919 JAG 67033 b

1        (3) whether the application meets the eligibility
2    requirements and the project costs are eligible under this
3    Act.
4    (e) Preference for grants shall be given to the following
5types of proposals:
6        (1) proposals that have established favorable
7    community support;
8        (2) proposals that increase the availability of
9    Illinois agricultural products to underserved communities
10    in Illinois;
11        (3) proposals that positively impact underserved
12    farmers in Illinois;
13        (4) proposals from established farmers and food
14    businesses;
15        (5) proposals that facilitate long-term economic
16    development in the local food sector;
17        (6) proposals that demonstrate comparable investments
18    by the anticipated recipient;
19        (7) proposals for high need projects; and
20        (8) proposals that are submitted by small and very
21    small farms and food businesses.
22    Section 25. Report. The grant administrator must annually
23file with the Governor and General Assembly and publish
24publicly each year a written report detailing the impact of
25the Local Food Infrastructure Grant Program for the previous



SB3077 Enrolled- 11 -LRB103 36919 JAG 67033 b

1calendar year. The report must include:
2        (1) a complete list of all applications for grants
3    under this Act that were received during the previous
4    calendar year;
5        (2) a complete list of all persons that were awarded a
6    grant under this Act in the previous calendar year and the
7    nature and amount of their awards; and
8        (3) a statement of the economic impact of the grants
9    made in the previous calendar year, which may include jobs
10    created, local food sales increased, and communities
11    served.
12    Section 30. Liability. The Director, the grant
13administrator, the Local Food Infrastructure Steering
14Committee, Department employees, and any persons authorized to
15execute grants are not personally liable on account of the
16grants made under this Act and are not subject to any personal
17liability or accountability by reason of the issuance of the
19    Section 35. Default or termination of grant agreement.
20    (a) If the recipient of a grant violates any of the terms
21of the grant agreement, the grant administrator shall send a
22written notice to the recipient that the recipient is in
23default, and the recipient shall be given the opportunity to
24correct the violations.



SB3077 Enrolled- 12 -LRB103 36919 JAG 67033 b

1    (b) If the violation is not corrected within 30 days after
2receipt of the notification, the grant administrator may take
3any one or more of the following actions:
4        (1) The grant administrator may declare due and
5    payable the amount of the grant, or any portion of it, and
6    cease additional grant payments not yet made to the grant
7    recipient.
8        (2) The grant administrator may take any other action
9    considered appropriate to protect the interest of the
10    project.
11    (c) The grant administrator may determine that a recipient
12has failed to faithfully perform the terms and conditions of
13the scope of work of the project when:
14        (1) The grant administrator has notified the recipient
15    in writing of the existence of circumstances such as
16    misapplication of grant funds, failure to match grant
17    funds, evidence of fraud and abuse, repeated failure to
18    meet performance timelines or standards, or failure to
19    resolve negotiated points of the agreement.
20        (2) The recipient fails to develop and implement a
21    corrective action plan within 30 calendar days of the
22    grant administrator's notice.
23    (d) A grant may be terminated as provided in this
25        (1) If there is no appropriation for the grant program
26    for a specific year, all grants for that year will be



SB3077 Enrolled- 13 -LRB103 36919 JAG 67033 b

1    terminated in full. If there is an insufficient
2    appropriation for the grant program for a specific year,
3    the grant administrator may make proportionate cuts to all
4    recipients.
5        (2) If the grant administrator determines that the
6    recipient has failed to comply with the terms and
7    conditions of the grant agreement, the grant administrator
8    may terminate the grant in whole, or in part, at any time
9    before the date of completion.
10        (3) If the grant administrator determines that the
11    continuation of the project would not produce beneficial
12    results commensurate with the further expenditure of
13    funds, the grant administrator may terminate the grant in
14    whole, or in part, at any time before the date of
15    completion.
16        (4) If the recipient refuses or elects not to complete
17    the grant agreement and terminate the grant, the recipient
18    shall notify the grant administrator within 10 days after
19    the date upon which performance ceases. Upon receipt of
20    the notification, the grant shall be declared terminated,
21    and the grant administrator may declare due and payable
22    the amount of the grant and may cease additional grant
23    payments not yet made to the grantee.
24    (e) Any money collected from the default or termination of
25a grant shall be placed into the Fund and expended for the
26purposes of this Act.



SB3077 Enrolled- 14 -LRB103 36919 JAG 67033 b

1    Section 40. Construction. This Act is necessary for the
2welfare of this State and must be liberally construed to
3effectuate its purposes. The Department may adopt rules that
4are consistent with and necessary for the implementation and
5administration of this Act.
6    Section 900. The State Finance Act is amended by adding
7Section 5.1015 as follows:
8    (30 ILCS 105/5.1015 new)
9    Sec. 5.1015. The Local Food Infrastructure Grant Fund.
10    Section 999. Effective date. This Act takes effect upon
11becoming law.