H.P. 1615 - L.D. 2258
An Act to Improve Financing Opportunities for the Cranberry Industry
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, the cranberry industry is recognized as an important, emerging agricultural industry in the State of Maine; and
Whereas, new cranberry operations do not produce income for up to 4 years; and
Whereas, construction for the cranberry season is seasonal, ending in the fall; and
Whereas, conventional financing of cranberry operations is difficult to obtain; and
Whereas, in the judgment of the Legislature, these facts create an emergency within the meaning of the Constitution of Maine and require the following legislation as immediately necessary for the preservation of the public peace, health and safety; now, therefore,
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 7 MRSA §435, sub-§2, ¶F is enacted to read:
F. Notwithstanding paragraphs A and B, an agricultural marketing loan for any cranberry project under this subchapter may not exceed 90% of the project cost. A loan from the fund may not be provided for such a project unless the applicant demonstrates a commitment of private funds of at least 10% of the total cost of the project; except that, in order to encourage the undertaking of cooperative projects by 2 or more agricultural enterprises, an agricultural marketing loan for any cranberry project may not be provided unless the cooperating agricultural enterprises as a group demonstrate a commitment of private funds of at least 5% of the total cost of the project. Any loan granted under this paragraph may not exceed $100,000.
Loans made pursuant to this paragraph may be used only for the following purposes: to provide assistance to enterprises in this State for the design, construction, implementation or improvement of facilities to grow, harvest, process or market cranberries; or for the construction, renovation or acquisition of land, buildings, equipment, vines, docks, wharves, piers or vessels used in connection with a commercial cranberry enterprise. Repayment of these loans and interest on these loans must be credited to the fund and must be available for making additional loans for the same purposes. Interest earned on money in the fund and interest earned on loans made from the fund may be used to pay the administrative costs of the authority.
The commissioner may defer principal and interest payments up to 4 years for the loan amount under this paragraph.
Disbursements under this paragraph may be made during the construction phase of the project.
Approval of loans under this paragraph is subject to the same credit criteria and conditions used for all other borrowers under the programs set forth in this subchapter.
Any rules adopted to implement the requirements of this paragraph are routine technical rules as defined in Title 5, chapter 375, subchapter II-A.
This paragraph is repealed December 31, 2001.
Sec. 2. Availability of funds. The Commissioner of Agriculture, Food and Rural Resources shall make available from the Agricultural Marketing Loan Fund bond funds approved pursuant to Private and Special Law 1995, chapter 81 in the amount of $1,000,000 for the purposes stated in the Maine Revised Statutes, Title 7, section 435, subsection 2, paragraph F. This section is repealed December 31, 2001.
Sec. 3. Report. The Department of Agriculture, Food and Rural Resources and the Finance Authority of Maine shall, working jointly, report back to the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs by January 20, 2000, January 20, 2001 and January 20, 2002 on the financial status of loans provided for cranberry projects, pursuant to the Maine Revised Statutes, Title 7, section 435, subsection 2, paragraph F. The report also must include data that summarizes those incidences of the Commissioner of Agriculture, Food and Rural Resources overriding loan recommendations by the Finance Authority of Maine related to cranberry projects.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective June 23, 1999.
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