PRINTER'S NO. 2441
No. 1953 Session of 1999
INTRODUCED BY BUNT, LESCOVITZ, PHILLIPS, LEH, SEMMEL, BELFANTI, ARMSTRONG, CHADWICK, ADOLPH, CORRIGAN, ARGALL, DAILEY, DALLY, DeWEESE, DRUCE, FAIRCHILD, FICHTER, FREEMAN, GODSHALL, GORDNER, GRUCELA, HARHART, HASAY, HERMAN, HERSHEY, JOSEPHS, KREBS, MASLAND, McCALL, McILHINNEY, MELIO, NAILOR, PESCI, COY, PLATTS, ROBERTS, ROHRER, SATHER, SCHRODER, SEYFERT, SHANER, B. SMITH, SNYDER, SOLOBAY, STABACK, STEELMAN, E. Z. TAYLOR, WILLIAMS, WOJNAROSKI, ZUG, BARD, BROWNE, CAWLEY, DeLUCA, EGOLF, GEORGE, HANNA, HENNESSEY, LAUGHLIN, CLYMER, MAITLAND, MANN, MICOZZIE, NICKOL, RAMOS, ROSS, BAKER, STEIL, STURLA, TANGRETTI, TRAVAGLIO, WALKO, YUDICHAK, DALEY, BASTIAN, CAPPABIANCA, MAJOR, STERN, TRUE, WILT, YOUNGBLOOD, ALLEN, BARRAR, CALTAGIRONE, CLARK, DEMPSEY, FEESE, GLADECK, HARHAI, HESS, LEDERER, TRELLO, MANDERINO, McGILL, R. MILLER, PETRARCA, REINARD, SAYLOR, STAIRS, STRITTMATTER, SURRA, THOMAS, VAN HORNE, WRIGHT, L. I. COHEN, VANCE, ZIMMERMAN, LUCYK AND MARKOSEK, OCTOBER 12, 1999
REFERRED TO COMMITTEE ON AGRICULTURE AND RURAL AFFAIRS, OCTOBER 12, 1999
AN ACT 1 Providing for grants to assist producers in purchasing or 2 updating technology or equipment for irrigation and water 3 conservation projects; providing for loans to assist 4 producers in purchasing or updating technology which will 5 increase productivity or provide entrance into new product 6 markets; establishing the Agricultural Technology Assistance 7 Fund; providing for powers and duties of the Department of 8 Agriculture; and making an appropriation. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 Section 1. Short title. 12 This act shall be known and may be cited as the Agricultural 13 Technology Assistance Act.
1 Section 2. Declaration of policy. 2 The General Assembly finds and declares as follows: 3 (1) Production agriculture is a mainstay of this 4 Commonwealth's economy, with nearly 50,000 family farms 5 generating $44 billion in economic activity each year. 6 (2) The prolonged drought of 1999 is an unprecedented 7 natural disaster which caused an estimated $500 million in 8 crop losses and threatens to destroy not only the 9 profitability of our farmers, but also the existence of 10 farmland in this Commonwealth. 11 (3) It is in the public interest, from the standpoint of 12 the economic well-being of the Commonwealth, to offer 13 financial support to help mitigate the effects of future 14 droughts and to purchase or update technology and equipment 15 to maintain the viability of this critical industry. 16 Section 3. Definitions. 17 The following words and phrases when used in this act shall 18 have the meanings given to them in this section unless the 19 context clearly indicates otherwise: 20 "Agricultural commodity." Any of the following: 21 (1) Agricultural, apicultural, aquacultural, 22 horticultural, floricultural, silvicultural, viticultural and 23 dairy products. 24 (2) Pasture. 25 (3) Livestock and the products thereof. 26 (4) Poultry and the products of poultry. 27 (5) Products commonly raised or produced on farms which 28 are: 29 (i) intended for human consumption; or 30 (ii) transported or intended to be transported in 19990H1953B2441 - 2 -
1 commerce. 2 (6) Processed or manufactured products of products 3 commonly raised or produced on farms which are: 4 (i) intended for human consumption; or 5 (ii) transported or intended to be transported in 6 commerce. 7 "Department." The Department of Agriculture of the 8 Commonwealth. 9 "Fund." The Agricultural Technology Assistance Fund. 10 "Producer." An individual, partnership, association or 11 corporation which produces an agricultural commodity. 12 "Secretary." The Secretary of Agriculture of the 13 Commonwealth. 14 "Water conservation project." Equipment, technology or 15 practices which a producer uses to store, conserve or reduce 16 agricultural water usage. 17 Section 4. Agricultural Technology Assistance Fund. 18 (a) Creation.--There is hereby created in the department the 19 Agricultural Technology Assistance Fund. Proceeds from this fund 20 shall be used: 21 (1) To provide matching grants to producers for the 22 installation of agricultural irrigation projects and for the 23 implementation of water conservation methods. 24 (2) To provide loans to producers to purchase or update 25 equipment or technology which will increase productivity or 26 provide entrance into new product markets. 27 (b) Revenue source.--All appropriations made by the General 28 Assembly for the purposes of this act shall be deposited into 29 this fund. 30 (c) Additional revenue.--The fund may receive gifts, grants, 19990H1953B2441 - 3 -
1 bequests or devices from any source, including funds from the 2 Federal Government and the State government. 3 (d) Allocation procedure.--When approval is provided for a 4 matching grant or loan under this act, the department shall 5 routinely requisition from the fund the amount to be allocated 6 by the department to the producer. 7 (c) Revolving.--The fund shall act as a revolving fund 8 whereby appropriations and payments to the fund may be applied 9 and reapplied to the fund. When and as the amounts so allocated 10 by the department as loans to producers are repaid to the 11 department in accordance with the terms and agreements made and 12 entered into with the department, the department shall pay those 13 amounts into the fund. All payments of interest on the loans 14 shall be deposited by the department into the fund. 15 Section 5. Matching grants authorized. 16 (a) Amount.--The department may provide a matching grant of 17 up to $10,000 to a producer for the installation of agricultural 18 irrigation projects or for the implementation of water 19 conservation projects. 20 (b) Requirements.--As a requisite to receiving a matching 21 grant, a producer shall obtain and provide evidence to the 22 department that matching funds have been obtained from a lender 23 or other source for the project for which the matching grant is 24 requested. The type of evidence that the department requires 25 shall be at the sole discretion of the department. 26 (c) Grants and loans under act.--A grant received under this 27 section may be used in combination with a loan received pursuant 28 to section 6. 29 Section 6. Loans authorized. 30 (a) Maximum.--The department may provide a loan for a 19990H1953B2441 - 4 -
1 maximum of $50,000 to a producer for the purchase or updating of 2 equipment or technology which will increase productivity or 3 provide entrance into new product markets. 4 (b) Interest rate.--The interest rate for loans shall be 2%. 5 (c) Term.--The maximum term of a loan may not exceed ten 6 years. Payments shall be made monthly, quarterly or 7 semiannually, as determined by the department. 8 (d) Loans and grants under act.--A loan received under this 9 section may be used in combination with a grant received 10 pursuant to section 5. 11 Section 7. Ineligible uses. 12 Matching grant and loan proceeds may not be used for any of 13 the following purposes: 14 (1) To cause, aid or assist indirectly or directly in 15 the relocation of a farm from one location in this 16 Commonwealth to another. 17 (2) To refinance a portion of the total project cost or 18 other existing loans or debts. 19 (3) To use in a project outside the geographic 20 boundaries of this Commonwealth. 21 (4) To purchase real estate or motor vehicles. 22 Section 8. Powers and duties. 23 (a) General.--The department shall have the following powers 24 and duties: 25 (1) Administer this act and the fund. 26 (2) Promulgate, within 90 days of the effective date of 27 this act, regulations to administer this act. Initial 28 regulations under this paragraph shall not be subject to the 29 act of June 25, 1982 (P.L.633, No.181), known as the 30 Regulatory Review Act. Final regulations shall be promulgated 19990H1953B2441 - 5 -
1 within one year of the effective date of this act. 2 (3) Enter into agreements with Federal and State 3 agencies as necessary to implement this act. 4 (b) Priority of recipients.--For the fiscal year beginning 5 July 1, 1999, the department shall give priority to producers 6 seeking grants for the installation of agricultural irrigation 7 projects and for the implementation of water conservation 8 methods. 9 Section 9. Appropriation. 10 The sum of $10,000,000 is hereby appropriated to the 11 Agricultural Technology Assistance Fund to provide matching 12 grants and loans to producers under this act. The money in the 13 fund is continuously appropriated to the fund to carry out the 14 purposes of this act. This appropriation shall not lapse at the 15 end of the fiscal year. 16 Section 10. Effective date. 17 This act shall take effect immediately. J6L02JAM/19990H1953B2441 - 6 -