CHAPTER 152
S.P. 250 - L.D. 882
An Act to Enhance Participation in the Agricultural Marketing Loan Fund
Emergency preamble. Whereas, Acts of the Legislature do not become effective until 90 days after adjournment unless enacted as emergencies; and
Whereas, interest rates established for loans from the Agricultural Marketing Loan Fund are significantly higher than interest rates for other state agricultural loan programs; and
Whereas, affordable financing is important to agricultural enterprises and our rural economies; and
Whereas, the Agricultural Marketing Loan Fund has been underutilized due to the interest rates; 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Sec. 1. 7 MRSA §434, sub-§1, as repealed and replaced by PL 1999, c. 504, §1, is amended to read:
1. Agricultural enterprise. "Agricultural enterprise" means a person or business located in this State and engaged in the commercial growing or harvesting of plants; raising of animals; growing or obtaining plant or animal by-products; aquaculture, as defined in Title 12, section 6001, subsection 1; or further processing, storing, packaging or marketing a raw product derived from plants, animals, plant or animal by-products or aquaculture, as defined in Title 12, section 6001, subsection 1, with the intent that the product be sold or otherwise disposed of to generate income. "Agricultural enterprise" includes a business or activity that attracts visitors to a farm for the purpose of supplementing income from the primary crop or livestock operation. "Agricultural enterprise" does not include a business engaged primarily in the growing, harvesting or further processing of forest species of trees for the purpose of producing pulp or other materials used in the paper manufacturing or wood manufacturing process.
Sec. 2. 7 MRSA §435, sub-§3, as enacted by PL 1995, c. 658, §1, is amended to read:
3. Interest rate. The commissioner, by rule, may establish an interest rate for a loan, except that this rate may not be less than loans is 5% per year. If the commissioner does not establish an interest rate, the rate on a loan is a rate that is 2% less than the prime rate of interest as is determined by the commissioner.
Sec. 3. 7 MRSA §435, sub-§5 is enacted to read:
5. Report. The commissioner shall submit an annual report on or before March 1st of each year to the joint standing committee of the Legislature having jurisdiction over agricultural matters. The report must include a summary of loans made during the previous calendar year and loans outstanding categorized by the types of agricultural enterprises receiving the loans.
Emergency clause. In view of the emergency cited in the preamble, this Act takes effect when approved.
Effective May 14, 2001.
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