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
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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,
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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
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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
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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.
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