1. (a) (1) A community outlet must use funds granted under this chapter only for 1 or more of the following purposes:

   1. a. To procure local food products. A community outlet may procure local food products from a farmer or processor located in Maryland, New Jersey, Pennsylvania, or Virginia, only if at least 1 of the following conditions apply:

      1. 1. The funds are first used to procure local food products from farmers, processors, or both, located in this State.
      2. 2. The type or quantity of local food products is not available or accessible from a farmer or processor located in this State.
   2. b. To distribute the local food products in this State.
   3. (2) A community outlet may use no more than 10% of the funds for incremental overhead costs, including administrative costs, transportation or delivery fees, supplies, and payment of staff or subcontractors to carry out work under a program agreement entered into under § 304A(b)(1) of this title.
2. (b) Subject to the Department’s regulations, a community outlet may enter into subcontracts and provide subawards to partner or collaborate with an individual or entity to implement a program agreement entered into under § 304A(b)(1) of this title.

85 Del. Laws, c. 513, § 1