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PRINTER'S NO. 1785
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 1362
Session of
2026
INTRODUCED BY ARGALL, MASTRIANO, CULVER, BROOKS AND YAW,
JUNE 5, 2026
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, JUNE 5, 2026
AN ACT
Providing for the Milk Dispensary School Pilot Program; awarding
grants; establishing the Milk Dispensary School Pilot Program
Account; and imposing duties on the Department of
Agriculture.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Milk
Dispensary School Pilot Program Act.
Section 2. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Agriculture of the
Commonwealth.
"Eligible school." A public school entity or a nonpublic
school participating in the National School Lunch Program or
School Breakfast Program within this Commonwealth.
"Milk dispensary system." Equipment and associated supplies
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used to safely store, hold, cool and dispense Grade A whole milk
in compliance with applicable Federal and State food safety
standards, including:
(1) bulk dispensers;
(2) bag in box units or sealed unit dispensers;
(3) upright coolers;
(4) dairy carts; and
(5) any required sanitation fixtures.
"Pilot program." The Milk Dispensary School Pilot Program
established under section 3(a).
"Public school entity." A school district, intermediate
unit, charter school, regional charter school or career and
technical center.
Section 3. Milk Dispensary School Pilot Program.
(a) Establishment.--The Milk Dispensary School Pilot Program
is established within the department to provide grants to
eligible schools to install milk dispensary systems in
accordance with this act.
(b) Administration.--The department, in collaboration with
the Center for Dairy Excellence, shall administer the pilot
program.
(c) Authority.--The department, with technical assistance
from the Center for Dairy Excellence, shall:
(1) solicit, review and approve applications from
eligible schools to participate in the pilot program;
(2) award grants for acquisition, installation and
maintenance of milk dispensary systems;
(3) develop program standards, guidance and training
materials;
(4) coordinate with the Department of Education and the
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Department of Health to ensure alignment with Federal and
State child nutrition and food safety requirements; and
(5) collect data and evaluate outcomes in consultation
with the Center for Dairy Excellence.
Section 4. Pilot program duration and grants.
(a) Duration.--The pilot program shall operate for a period
of 10 school years beginning with the 2027-2028 school year.
(b) Grants.--The department shall award grants to eligible
schools in accordance with this section.
(c) Diversity of grant awards.--The department shall select
a diverse cohort of not fewer than 20 eligible schools:
(1) representing urban, suburban and rural regions; and
(2) of varying enrollment sizes.
(d) Prioritization of grant awards.--In awarding grants, the
department shall prioritize applicants that:
(1) demonstrate potential for measurable reductions in
packaging waste and product loss;
(2) serve high percentages of low-income students or
operate the United States Department of Agriculture Community
Eligibility Provision;
(3) source whole milk from locally sourced dairy
processors; and
(4) commit to share data and best practices with other
schools.
(e) Allowable costs.--Grant funds may be used:
(1) to purchase or lease milk dispensary systems and
required accessories;
(2) for installation, calibration and maintenance costs;
(3) for staff training and food safety certification;
and
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(4) for measurement and reporting costs approved by the
department.
Section 5. Standards and compliance.
(a) Food safety.--Each milk dispensary system and associated
operating practices shall comply with the most current,
applicable Federal regulations and State food safety standards.
The department shall post technical guidance, in consultation
with the Department of Health, on the department's publicly
accessible Internet website.
(b) Nutrition rules.--A school participating in the pilot
program shall comply with all applicable Federal regulations and
requirements of the National School Lunch Program and School
Breakfast Program, including fluid milk requirements and meal
pattern rules.
(c) Procurement.--School procurement shall follow applicable
Federal and State procurement requirements, including Buy
American provisions where applicable. The department, in
consultation with the Department of Education, shall provide
model specifications.
Section 6. Data collection, evaluating and reporting.
(a) Metrics.--Participating schools shall submit quarterly
data to the department, including:
(1) milk volumes purchased and dispensed, student uptake
rates, temperature logs and waste reduction metrics;
(2) cost comparisons against prior packaging formats;
and
(3) qualitative feedback from food service staff and
students.
(b) Interim updates.--The department shall provide an annual
public update summarizing participation, costs, preliminary
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outcomes and recommendations.
(c) Report.--Within three months after the conclusion of the
third year of the pilot program, the department, in
collaboration with the Center for Dairy Excellence, shall submit
a report to the Governor and the General Assembly detailing
outcomes, cost benefit analysis, food safety findings,
environmental impacts and policy recommendations, including
whether to expand, modify or discontinue the pilot program.
Section 7. Account and funding.
(a) Creation of account.--The Milk Dispensary School Pilot
Program Account is established in the State Treasury. The
account shall consist of appropriations, gifts, grants and other
funds received for the purposes of this act.
(b) Appropriation.--Money in the account is appropriated to
the department on a continuing basis for the purposes of
providing grants under this act.
(c) Matching funds.--The department may require
participating schools to provide matching funds or in-kind
contributions not to exceed 10% of the award, except for schools
meeting established low-income thresholds.
Section 8. Sunset.
The authority for the department to provide grants under this
act shall expire five years after the effective date of this
section.
Section 9. Effective date.
This act shall take effect immediately.
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