102 STAT. 1670
Taxes.
PUBLIC LAW 100-435—SEPT. 19, 1988
"(ii) On the showing by the State of substantial need, the Secretary may permit a State to use up to an additional two percent of the total project funds for administration of such project for any fiscal year. "(iii) The provisions of clauses (i) and (ii) with respect to the use of project funds for the administration of the project shall not apply to any funds that a State may contribute in excess of the funds used by the State to meet the requirements under subparagraph (B). "(G) The State shall ensure that no State or local taxes are collected within the State on purchases of food with coupons distributed under the project. "(6)(A) A State that desires to receive a grant under this subsection shall submit an application to the Secretary at such time and in such manner as the Secretary may reasonably require. "(B)(i) Each application submitted under this paragraph shall contain— "(I) the estimated cost of the program and the estimated number of individuals to be served by such program; "(II) a description of the State plan for complying with the requirements established in paragraph (5); and "(III) criteria developed by the State with respect to authorization of producers to participate in the program. "(ii) The criteria developed by the State as required by clause (i)(III) shall require any authorized producer to sell fresh nutritious unprepared foods (such as fruits and vegetables) to recipients, in exchange for coupons distributed under the project. "(C) The Secretary shall establish objective criteria for the approval of applications submitted under this paragraph. "(D) In approving applications submitted under this paragraph, the Secretary shall— "(i) favorably consider a State's prior experiences with programs in existence as of the date of enactment of the Hunger Prevention Act of 1988; "(ii) favorably consider a State's operation of a similar project with State or local funds that can present data concerning the value of such project, and such data can be of assistance to other States interested in developing such farmers' market coupons projects; "(iii) award a grant to at least one applicant that proposes to operate the program on a Statewide basis; "(iv) give preference to applications from States that propose projects that are determined by the Secretary to— "(I) have possible national significance; or "(II) show unusual promise in promoting similar projects; "(v) give preference to applications that show promise of continued operation of the project for which the grant is requested after the grant expires; "(vi) require that if a State receives a grant under this section and that State is operating a similar project with State or local funds, that State shall not reduce in any fiscal year the amount of State and local funds available to the project in the preceding fiscal year after receiving funds for the project under this subsection; and "(vii) give preference to applications for projects that would serve areas in the State that have— "(I) the highest concentration of eligible persons;
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