Bill Text: NJ A4274 | 2016-2017 | Regular Session | Introduced
Bill Title: Requires EDA, in consultation with Department of Agriculture, to establish loan program for certain vineyard and winery capital expenses.
Spectrum: Partisan Bill (Democrat 4-0)
Status: (Introduced - Dead) 2017-01-12 - Reported and Referred to Assembly Appropriations Committee [A4274 Detail]
Download: New_Jersey-2016-A4274-Introduced.html
Sponsored by:
Assemblyman ERIC HOUGHTALING
District 11 (Monmouth)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Requires EDA, in consultation with Department of Agriculture, to establish loan program for certain vineyard and winery capital expenses.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning loans to vineyards and wineries and supplementing P.L.1974, c.80 (C.34:1B-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Authority" shall have the same meaning as provided in section 3 of P.L.1974, c.80 (C.34:1B-3).
"Department" means the Department of Agriculture established pursuant to R.S.4:1-1.
"Qualified capital expense" means all expenditures made by an eligible vineyard or winery for land acquisition or improvement, infrastructure acquisition or modernization, and the purchase or modernization of machinery and equipment, including:
a. barrels;
b. bins;
c. bottling equipment;
d. canopy management machines;
e. capsuling equipment;
f. chemicals;
g. corkers;
h. crushers;
i. deer control fencing;
j. destemmers;
k. fermenters or other recognized fermentation devices;
l. fertilizer and soil amendments;
m. filters;
n. fruit harvesters;
o. fruit plants;
p. hoses;
q. irrigation equipment;
r. labeling equipment;
s. lugs;
t. mowers;
u. poles;
v. posts;
w. presses;
x. pruning equipment;
y. pumps;
z. refractometers;
aa. refrigeration equipment;
bb. seeders;
cc. soil;
dd. small tools;
ee. tanks;
ff. tractors;
gg. vats;
hh. weeding and spraying equipment;
ii. wine tanks;
jj. wire; and
kk. any other items as approved by the authority in consultation with the department.
"Vineyard" means agricultural lands located in the State consisting of at least 1 contiguous acre dedicated to the growing of grapes or other fruit that are used or are intended to be used in the production of wine by a winery as well as any other plants or other improvements located thereon.
"Winery" means a commercial farm where the owner or operator of the commercial farm has been issued and is operating in compliance with a plenary winery license or farm winery license pursuant to R.S.33:1-10.
2. a. The New Jersey Economic Development Authority, in consultation with the Department of Agriculture, shall maintain and administer a loan program and application process for the purpose of providing loans to eligible vineyards or wineries to pay for qualified capital expenses.
b. The authority, in consultation with the department, shall provide a loan to an eligible vineyard or winery to pay for qualified capital expenses. A loan amount shall be no less than $10,000 and no greater than $100,000 to each eligible vineyard or winery, bear a rate of interest between three and five percent, and shall be repayable over a term of up to ten years, as determined by the authority and department. A vineyard or winery or an existing winery or vineyard that plans to use funds from the prospective loan to acquire more property in order to expand its business shall be eligible for higher loan amounts with lower interest rates as determined by the authority and department.
c. A loan to an eligible vineyard or winery authorized under P.L. , c. (C. ) (pending before the Legislature as this bill) shall be made pursuant to a loan agreement with the authority and shall contain any terms and conditions considered appropriate by the authority that are consistent with the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill). The provisions of the loan agreement shall include, but not be limited to, a statement of an eligible vineyard or winery proportional shares of ownership, its equipment usage and maintenance responsibilities, and its loan repayment responsibilities for any loan proceeds received under the loan program.
d. The authority may, in its discretion, require an eligible vineyard or winery that receives a loan authorized pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) to submit an annual audited financial statement to the authority in order to ensure the continued viability of all vineyard or winery operations.
e. The authority may, either through the adoption of rules and regulations, or through the terms of the loan agreement made pursuant to subsection c. of this section, establish terms governing the incidence of default by an eligible vineyard or winery that receives a loan under the program administered pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
3. The authority, in consultation with the department, may adopt rules and regulations, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), as may be necessary to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill).
4. This act shall take effect immediately.
STATEMENT
This bill requires the New Jersey Economic Development Authority (EDA), in consultation with the Department of Agriculture (department), to establish a loan program and application process for the purpose of providing loans to eligible vineyards or wineries to pay for "qualified capital expenses," as that term is defined in the bill.
Under the bill, the EDA, in consultation with the department, is to provide a loan to an eligible vineyard or winery to pay for qualified capital expenses. The loan amount is to be no less than $10,000 and no greater than $100,000 to each eligible vineyard or winery, bear a rate of interest between three and five percent, and be repayable over a term of up to ten years, as determined by the authority and department. A new vineyard or winery or an existing winery or vineyard that plans to use funds from the prospective loan to acquire more property in order to expand its business is to be eligible for higher loan amounts with lower interest rates as determined by the authority and department.
Under the bill, "vineyard" means agricultural lands located in the State consisting of at least 1 contiguous acre dedicated to the growing of grapes or other fruit that are used or are intended to be used in the production of wine by a winery as well as any other plants or other improvements located thereon. "Winery" means a commercial farm where the owner or operator of the commercial farm has been issued and is operating in compliance with a plenary winery license or farm winery license pursuant to R.S.33:1-10.
