Sec. 1. 7 MRSA c. 10 is amended by repealing the headnote and enacting the following in its place:

CHAPTER 10

AGRICULTURAL DEVELOPMENT GRANT PROGRAM

Sec. 2. 7 MRSA §305, as enacted by PL 1987, c. 402, Pt. A, §77, is repealed.

Sec. 3. 7 MRSA §306, as enacted by PL 1987, c. 402, Pt. A, §77, is repealed.

Sec. 4. 7 MRSA §306-A is enacted to read:

§306-A. Agricultural Development Fund

1.__Agricultural Development Fund.__The commissioner shall establish an agricultural development fund to accelerate new market development, adoption of advantageous technologies and promotion of state agricultural products by state producers.

2.__Fund operation.__The commissioner shall utilize the agricultural development fund to:

A.__Provide grants to individuals, firms or organizations to conduct market research or to undertake market promotion activities for the purpose of expanding existing markets and developing new markets for state agricultural products; and

B.__Test and demonstrate new technologies related to the production, storage and processing of state agricultural commodities.

3.__Rulemaking.__The commissioner shall establish, by rule, in a manner consistent with Title 5, chapter 375, subchapter II-A criteria for the allocation of grant money, application requirements consistent with the provisions of this section, a schedule for accepting and reviewing applications, reporting requirements on grant expenditures and project results and any other administrative requirements necessary for the efficient implementation of this program.__The commissioner is guided by the following criteria:

A.__Applications may be submitted by individuals, firms or organizations;