ASSEMBLY, No. 3057
STATE OF NEW JERSEY
217th LEGISLATURE
INTRODUCED FEBRUARY 16, 2016
Sponsored by:
Assemblywoman GAIL PHOEBUS
District 24 (Morris, Sussex and Warren)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
Assemblyman RONALD S. DANCER
District 12 (Burlington, Middlesex, Monmouth and Ocean)
Assemblyman ADAM J. TALIAFERRO
District 3 (Cumberland, Gloucester and Salem)
Assemblyman ERIC HOUGHTALING
District 11 (Monmouth)
SYNOPSIS
Requires NJEDA to establish loan program for certain farming operation equipment purchases.
CURRENT VERSION OF TEXT
As reported by the Assembly Agriculture and Natural Resources Committee on October 13, 2016, with amendments.
An Act concerning loans to certain farming operations 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.
1"Eligible farming operation" means two or more business entities that are engaged in farming operations in the State, that are applying together for participation in the loan program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and that, at the time of the application, are independently owned and operated, participate in an agricultural commodity or product marketing and development program operated by the Department of Agriculture, and satisfy other criteria that may be established by the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).1
“Farm equipment” means equipment used directly 1[related to a farming operation] for farming operations1.
“Farming [operation] operations” 1[means, within this State,] mean any activities connected to1 the commercial growing, harvesting, processing, producing, or raising of agricultural products 1in the State,1 including crops, dairy animals, livestock, fur-bearing animals, poultry, bees, 1[,] crops used in fermented alcoholic beverages and wine, and any products therefrom;1 aquacultural products 1[,] ;1 horticultural products 1[, crops used in fermented alcoholic beverages] ;1 and trees and forest products.
1["Eligible farming operation" means two or more business entities that are a farming operation that, at the time of application for participation in the loan program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), are independently owned and operated, operate within this State, participate in an agricultural commodity or product marketing and development program operated by the Department of Agriculture, and satisfy other criteria that may be established by the authority.]1
2. a. The New Jersey
Economic Development Authority, in
consultation with the Department of Agriculture, shall maintain and administer
a loan program for the purpose of providing loans to an eligible farming
operation for the purchase of farm equipment.
b. Loans made by the authority to an eligible farming operation may be applied to any aspect of the eligible farming operation that supports its farm equipment purchases as determined by the authority. Farm equipment purchased from loan funds made pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall be used by 1[two or more eligible farming operations] all of the business entities in the eligible farming operation1.
c. (1) Two or more 1[farming operations] business entities engaged in farming operations in the State1 seeking to participate in the loan program established pursuant to 1[P.L. , c. (C. ) (pending before the Legislature as this bill)] subsection a. of this section1 shall submit a joint application in a form as the authority shall require and shall include information as the authority determines is necessary in consideration of a loan authorized pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
(2) In order to receive a loan from the authority pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), 1[each farming operation] a business entity engaged in farming operations in the State1, at the time of application, shall provide proof 1, in a manner determined by the authority,1 that it and another 1[farming operation that] business entity or other business entities engaged in farming operations in the State1 that will 1also1 use the farm equipment are an eligible farming operation 1[in a manner as determined by the authority]1.
(3) The authority shall review 1and approve the1 completed 1[applications and shall approve applications] joint application1 from 1[farming operations] applying business entities1 determined by the authority to be an eligible farming operation for the purposes of the loan program established pursuant to 1[P.L. , c. (C. ) (pending before the Legislature as this bill)] subsection a. of this section1 .
d. Loans to an eligible farming operation authorized under 1[P.L. , c. (C. ) (pending before the Legislature as this bill)] this section1 shall 1:
(1)1 be made pursuant to a loan agreement with the authority 1[, shall] ;
(2)1 bear interest at rates and terms deemed appropriate by the authority 1[,] ;1 and 1[shall]
(3)1 contain other 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) and with rules and regulations 1[promulgated] adopted1 by the authority 1pursuant1 to 1[implement] section 3 of1 P.L. , c. C. ) (pending before the Legislature as this bill).
The provisions of the loan agreement shall include, but 1need1 not be limited to, a statement of an eligible farming operation’s proportional shares of ownership, its farm equipment usage and maintenance responsibilities, and its loan repayment responsibilities for any loan proceeds received under the loan program.
e. The authority may, in its discretion, require an eligible farming operation that receives a loan authorized pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) to submit a joint annual audited financial statement to the authority in order to ensure the continued viability of all 1[eligible farming operations] business entities in the eligible farming operation1 using the farm equipment.
f. The authority may, either through the adoption of rules and regulations, or through the terms of the loan agreement made pursuant to subsection d. of this section, establish terms governing the incidence of default by an eligible farming operation that receives a loan 1[under the program administered]1 pursuant to 1[P.L. , c. (C. ) (pending before the Legislature as this bill)] this section1.
3. The authority, in consultation with the department, shall 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.