S T A T E O F N E W Y O R K
________________________________________________________________________
5639
2009-2010 Regular Sessions
I N A S S E M B L Y
February 17, 2009
___________
Introduced by M. of A. DelMONTE -- read once and referred to the Commit-
tee on Agriculture
AN ACT relating to the creation of the vineyard planting loan program
and making an appropriation therefor
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Vineyard planting loan program. 1. Notwithstanding the
provisions of any general or special law to the contrary, the New York
wine/grape foundation shall undertake to provide financial assistance to
rural land owners for the planting of grapes and development of wineries
in the state of New York.
2. For purposes of this section, and notwithstanding any provision of
law to the contrary, as used in this section:
(a) "Rural land owner" shall mean a person who engages in grape manu-
facturing and/or the production and processing of wine, grapes or grape
products or desires to engage in farming of grape manufacturing and/or
the production and processing of wine, grapes or grape products in the
state.
(b) "Lender" shall mean any state or federally-chartered savings bank,
savings and loan association, state or federally-chartered savings banks
and savings and loan associations, farm credit system institution, or
state or federally-chartered commercial banks or trust companies author-
ized to do business in this state.
3. The foundation is hereby authorized to enter into any contract,
financing or loan agreement, or other instrument in connection with a
loan made by a lender to a rural land owner for purposes of this
section.
4. (a) In order to effectuate the purposes of this section, the foun-
dation may extend credit to or on behalf of a rural land owner for the
planting of vineyards, the purchasing of vines and the purchasing of
vineyard equipment and supplies.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08683-02-9
A. 5639 2
(b) Credit shall not be extended to rural land owners for the purchase
or lease of tractors, trucks or winemaking equipment.
5. (a) In connection with the issuance of any bond or note issued in
connection with or for the vineyard planting loan program, the founda-
tion may fix and collect any fees and charges, including but not limit-
ed to reimbursement of all costs of financing incurred by the founda-
tion, as the corporation shall determine to be reasonable.
(b) Interest rates charged to the rural land owner by the foundation
shall be less than the amount that is being charged by commercial lend-
ers.
6. In connection with the extension of credit and the issuance of a
bond or note to a rural land owner as provided in this section, a rural
land owner shall submit to the foundation an application for the exten-
sion of credit or a loan. The foundation may deny such application for
any reason it deems appropriate in the public interest.
7. All assets and liabilities created through the issuance of bonds or
notes under this section shall be separate from all other assets and
liabilities of the foundation. The foundation shall have no moral or
legal obligation or liability to any rural land owner or other person
under this section except as expressly provided by written contract. No
funds in the vineyard planting loan program may be commingled with any
other funds of the foundation.
8. (a) The foundation shall promulgate regulations, developed in
consultation with the commissioner of agriculture and markets, for the
purpose of carrying out its responsibilities under this section, includ-
ing establishing the criteria and standards for evaluating and criteria
for eligibility of rural land owners to be financed by the vineyard
planting loan program.
(b) The foundation shall consult with the commissioner of agriculture
and markets regarding promotion of the loan program and agriculturally
related questions regarding the program or applications.
S 2. The sum of three million dollars ($3,000,000), or so much thereof
as may be necessary, is hereby appropriated to the New York wine/grape
foundation in consultation and coordination with the commissioner of
agriculture and markets out of any moneys in the state treasury in the
general fund to the credit of the state purposes account not otherwise
appropriated, for carrying out the provisions of this act. Such sum
shall be payable on the audit and warrant of the state comptroller on
vouchers certified or approved by the commissioner of agriculture and
markets, or his or her duly designated representative in the manner
provided by law. No expenditure shall be made from this appropriation
until a certificate of approval of availability shall have been issued
by the director of the budget and filed with the state comptroller and a
copy filed with the chairperson of the senate finance committee and the
chairperson of the assembly ways and means committee. Such certificate
may be amended from time to time by the director of the budget and a
copy of each such amendment shall be filed with the state comptroller,
the chairperson of the senate finance committee and the chairperson of
the assembly ways and means committee.
S 3. This act shall take effect on the one hundred twentieth day after
it shall have become a law.