PRINTER'S NO. 1287
No. 1055 Session of 1999
INTRODUCED BY O'PAKE, MELLOW, STAPLETON, BODACK, STOUT,
KUKOVICH, CONTI, MUSTO, HELFRICK, MOWERY, COSTA, KASUNIC,
LEMMOND, BELAN, WAGNER, WAUGH AND LAVALLE, AUGUST 6, 1999
REFERRED TO AGRICULTURE AND RURAL AFFAIRS, AUGUST 6, 1999
AN ACT
1 Providing for loans to assist farmers in their efforts to
2 recover from catastrophic weather conditions beyond their
3 control; establishing the Farm Loan Recovery Fund; providing
4 for powers and duties of the Department of Agriculture; and
5 making an appropriation.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Farm Loan
10 Recovery Act.
11 Section 2. Declaration of policy.
12 The General Assembly finds and declares as follows:
13 (1) Agriculture is the leading industry in Pennsylvania.
14 (2) The severe drought of 1999 coupled with the record
15 high temperatures in the Northeast have placed Pennsylvania's
16 farmers at an extreme economic disadvantage which threatens
17 their ability to survive.
18 (3) Although the United States Department of Agriculture
19 administers Federal disaster programs, many farmers in
1 Pennsylvania will be ineligible for them.
2 (4) The Commonwealth should provide loan assistance to
3 those farmers who will not be eligible for Federal programs.
4 Section 3. Definitions.
5 The following words and phrases when used in this act shall
6 have the meanings given to them in this section unless the
7 context clearly indicates otherwise:
8 "Department." The Department of Agriculture of the
9 Commonwealth.
10 "Eligible applicant." A person whose primary occupation and
11 source of income is derived from farming.
12 Section 4. Loans authorized.
13 (a) Authority of department.--The department may, on
14 application of any eligible applicant, make a loan under this
15 act to an eligible applicant for the purpose of recovering from
16 catastrophic weather conditions.
17 (b) Terms.--The loan will be for a period of not more than
18 ten years and shall be subject to repayment of interest at no
19 more than 2%.
20 Section 5. Farm Loan Recovery Fund.
21 (a) Fund established.--There is established a special fund
22 in the State Treasury to be known as the Farm Loan Recovery Fund
23 to which shall be credited all appropriations made by the
24 General Assembly for the purposes of this act and repayments of
25 principal on loans made under this act.
26 (b) Repayments.--
27 (1) Upon approval of a loan under this act, the
28 department shall routinely requisition from the fund the
29 amount to be allocated by the department for loans to
30 eligible applicants.
19990S1055B1287 - 2 -
1 (2) When and as the amounts so allocated by the
2 department as loans to eligible applicants are repaid to the
3 department in accordance with the terms of the agreements
4 made and entered into with the department, the department
5 shall pay those amounts into the fund. All payments of
6 interest on the loans shall be deposited by the department in
7 the fund.
8 (3) The fund shall operate as a revolving fund whereby
9 appropriations and payments to the fund may be applied and
10 reapplied to the fund.
11 Section 6. Regulations.
12 The department shall administer this act and shall promulgate
13 regulations for its proper enforcement and administration.
14 Section 7. Appropriation.
15 The sum of $100,000,000, or as much thereof as may be
16 necessary, is hereby appropriated to the Farm Loan Recovery Fund
17 for the fiscal year July 1, 1999, to June 30, 2000, to provide
18 loans to eligible applicants under this act.
19 Section 8. Effective date.
20 This act shall take effect July 1, 1999, or immediately,
21 whichever is later.
G28L03JLW/19990S1055B1287 - 3 -