HB1557 (2020) Detail

Establishing a value added grant matching fund for New Hampshire agricultural producers.


HB 1557-FN-A - AS INTRODUCED

 

 

2020 SESSION

20-2425

08/04

 

HOUSE BILL 1557-FN-A

 

AN ACT establishing a value added grant matching fund for New Hampshire agricultural producers.

 

SPONSORS: Rep. Luneau, Merr. 10

 

COMMITTEE: Environment and Agriculture

 

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ANALYSIS

 

This bill establishes a value added grant matching fund and program for New Hampshire agricultural producers.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2425

08/04

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Twenty

 

AN ACT establishing a value added grant matching fund for New Hampshire agricultural producers.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  New Subdivision; Value Added Producer Grant Program.  Amend RSA 425 by inserting after section 26 the following new subdivision:

Value Added Producer Grant Program

425:27  Value Added Producer Grant Program.  

I.  There is established in the state treasury a fund, to be known as the value added producer grant fund, for the purpose of providing matching grants to recipients of federal value added producer grants from the United States Department of Agriculture.  Moneys in this account shall be nonlapsing and continually appropriated to the department of agriculture, markets, and foods.

II.  There is established in the department of agriculture, markets, and food the value-added producer grant program to assist New Hampshire agricultural producers in generating new products, creating and expanding marketing opportunities, and increasing agricultural producer income.

III.  Any agricultural producer who receives a Value Added Producer Grant from the United States Department of Agriculture may apply to the commissioner to receive a grant from the department of agriculture, markets, and food for an amount equal to up to half of the grant received from the USDA.  Such grant shall be issued within 60 days of receipt of the Value Added Producer Grant from the USDA.

IV.  The commissioner shall award such grants in the same proportion for all recipients in a given application year.  

V.  The commissioner shall adopt rules under RSA 541-A relative to the administration of the program.

2  New Subparagraph; Value Added Producer Grant Fund.  Amend RSA 6:12, I(b) by inserting after subparagraph (358) the following new subparagraph:

(359)  Money received by the department of agriculture, markets, and food for administration for the value added producer grant fund established in RSA 425:27.  

3  Appropriation.  The sum of $100,000 for the fiscal year ending June 30, 2020 is hereby appropriated to the commissioner of the department of agriculture, markets, and food for the purpose of awarding value added producer grants to agricultural producers pursuant to RSA 425:27.  Such funds shall be nonlapsing.  The governor is authorized to draw a warrant for said sum out of any money in the treasury not otherwise appropriated.

4  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

20-2425

11/19/19

 

HB 1557-FN-A- FISCAL NOTE

AS INTRODUCED

 

AN ACT establishing a value added grant matching fund for New Hampshire agricultural producers.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$100,000

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

$0

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Value added producer grant fund

 

 

 

 

 

METHODOLOGY:

This bill establishes a non-lapsing value added grant matching fund and program for New Hampshire agricultural producers.  The Department of Agriculture, Markets and Food (Department) indicates the fund would be available to recipients of grants from the federal Value-Added Producer Grant Program from the U.S. Department of Agriculture (USDA).   The Department has no oversight regarding the USDA Value Added Producer Grant Program, and  receives no information from USDA regarding the grant awards.  The Department would need to establish communication with the USDA Rural Development Agency to confirm grant award information for NH matching funds applications.  Projects receiving funding under the federal program may receive grants up to $250,000.  The federal program requires that recipients provide a match of 50% of the total project costs, which can be a combination of cash and in-kind contributions.  Applicants must show the sources of matching funds in the federal application, meaning applicants seeking NH matching funds would need to apply to the Department prior to approval from the USDA.  Approval for NH matching funds would then be contingent on approval of federal funds from the USDA.  If a federal application was not approved, the NH matching funds would be retained for distribution to other applicants in the next round of funding.  The Department assumes the program could be managed by existing staff and there would likely be only a few applicants for matching funding each year.  The federal Value-Added Producer Grant Program was not funded in 2017 and 2019 and no awards were made.  Nine NH producers have been funded through the federal program since 2014.  The Department would establish guidelines and rules defining the application process, funding rate, reporting, and any limits on the number of applicants funded per year.  Recipients of federal USDA Value Added Producer Grant would enter into an agreement with the Department to oversee the spending of the funds.  

 

Federal applications for program funding are due in January and awards are made in the Spring.  Applicants for NH matching funds would need to apply and be confirmed for matching funds ahead of the federal deadline in January.  Recipients of federal grants would be confirmed by the Department and an agreement with the recipient would be executed.  Future spending of the initial $100,000 general fund appropriation from the non-lapsing fund will depend on the number of applicants and the federal funding level in each year.

 

AGENCIES CONTACTED:

Department of Agriculture, Markets and Food

 

Links

HB1557 at GenCourtMobile
HB1557 Discussion

Action Dates

Date Body Type
Jan. 16, 2020 House Hearing
Feb. 4, 2020 House Exec Session

Bill Text Revisions

HB1557 Revision: 7187 Date: Dec. 3, 2019, 11:30 a.m.

Docket

Date Status
Jan. 8, 2020 Introduced 01/08/2020 and referred to Environment and Agriculture HJ 1 P. 26
Jan. 16, 2020 Public Hearing: 01/16/2020 10:00 am LOB 303
Jan. 30, 2020 Full Committee Work Session: 01/30/2020 10:00 am LOB 303
Feb. 4, 2020 Executive Session: 02/04/2020 10:00 am LOB 303
Committee Report: Refer for Interim Study (Vote 20-0; CC)
Feb. 19, 2020 Committee Report: Refer for Interim Study for 02/19/2020 (Vote 20-0; CC) HC 7 P. 7
Feb. 19, 2020 Refer for Interim Study: MA VV 02/19/2020 HJ 4 P. 11