EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1388*
HOUSE BILL 1388
C8, B1 2lr2251
CF SB 594
By: Delegate Guyton
Introduced and read first time: February 15, 2022
Assigned to: Rules and Executive Nominations
A BILL ENTITLED
AN ACT concerning 1
Winery and Vineyard Economic Development Grant Program 2
FOR the purpose of establishing the Winery and Vineyard Economic Development Grant 3
Program within the Department of Commerce; authorizing certain individuals and 4
corporations to receive a grant in connection with establishing certain wineries and 5
vineyards or completing capital improvements at certain existing wineries and 6
vineyards; and generally relating to the Winery and Vineyard Economic 7
Development Grant Program. 8
BY adding to 9
Article – Economic Development 10
Section 5–1901 through 5–1903 to be under the new subtitle “Subtitle 19. Winery 11
and Vineyard Economic Development Grant Program” 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2021 Supplement) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Economic Development 17
SUBTITLE 19. WINERY AND VINEYARD ECONOMIC DEVELOPMENT GRANT 18
PROGRAM. 19
5–1901. 20
(A) IN THIS SUBTITL E THE FOLLOWING WORD S HAVE THE MEANINGS 21
INDICATED. 22
(B) “PROGRAM” MEANS THE WINERY AND VINEYARD ECONOMIC 23 2 HOUSE BILL 1388
DEVELOPMENT GRANT PROGRAM ESTABLISHED U NDER § 5–1902 OF THIS 1
SUBTITLE. 2
(C) “QUALIFIED CAPITAL EXP ENSES” MEANS ALL EXPENDITUR ES MADE BY 3
AN INDIVIDUAL OR A CORPORATION FOR THE PURCHASE AND INS TALLATION OF 4
EQUIPMENT OR AGRICUL TURAL MATERIALS FOR USE IN THE PRODUCTIO N OF 5
AGRICULTURAL PRODUCT S AT A VINEYARD OR A WINERY, INCLUDING: 6
(1) BARRELS; 7
(2) BINS; 8
(3) BOTTLING EQUIPMENT ; 9
(4) CANOPY MANAGEMENT MACHINES ; 10
(5) CAPSULING EQUIPMENT ; 11
(6) CHEMICALS; 12
(7) CORKERS; 13
(8) CRUSHERS; 14
(9) DESTEMMERS ; 15
(10) FERMENTERS OR OTHER RECOGNIZED FERMENTAT ION DEVICES; 16
(11) FERTILIZER AND SOIL AMENDMENTS ; 17
(12) FILTERS; 18
(13) FRUIT HARVESTERS ; 19
(14) FRUIT PLANTS; 20
(15) HOSES; 21
(16) IRRIGATION EQUIPMENT ; 22
(17) LABELING EQUIPMENT ; 23
(18) LUGS; 24 HOUSE BILL 1388 3
(19) MOWERS; 1
(20) POLES; 2
(21) POSTS; 3
(22) PRESSES; 4
(23) PRUNING EQUIPMENT ; 5
(24) PUMPS; 6
(25) REFRACTOMETERS ; 7
(26) REFRIGERATION EQUIPM ENT; 8
(27) SEEDERS; 9
(28) SOIL; 10
(29) SMALL TOOLS; 11
(30) TANKS; 12
(31) TRACTORS; 13
(32) VATS; 14
(33) WEEDING AND SPRAYING EQUIPMENT; 15
(34) WINE TANKS; 16
(35) WIRE; AND 17
(36) ANY OTHER ITEMS AS A PPROVED BY THE DEPARTMENT . 18
(D) “VINEYARD” MEANS AGRICULTURAL L ANDS LOCATED IN THE STATE 19
CONSISTING OF AT LEA ST 1 CONTIGUOUS ACRE DEDI CATED TO THE GROWING OF 20
GRAPES THAT ARE USED OR ARE INTENDED TO B E USED IN THE PRODUC TION OF 21
WINE BY A WINERY AS WELL AS ANY PLANTS O R OTHER IMPROVEMENTS LO CATED 22
ON THE AGRICULTURAL LANDS. 23
4 HOUSE BILL 1388
(E) “WINERY” MEANS AN ESTABLISHME NT OR A LOCATION IDE NTIFIED IN: 1
(1) A CLASS 3 WINERY LICENSE ISSUE D UNDER § 2–205 OF THE 2
ALCOHOLIC BEVERAGES ARTICLE; OR 3
(2) A CLASS 4 LIMITED WINERY LICEN SE ISSUED UNDER § 2–206 OF 4
THE ALCOHOLIC BEVERAGES ARTICLE. 5
5–1902. 6
(A) THERE IS A WINERY AND VINEYARD ECONOMIC DEVELOPMENT GRANT 7
PROGRAM IN THE DEPARTMENT . 8
(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 9
ASSISTANCE TO INDIVI DUALS AND CORPORATIO NS TO: 10
(1) ESTABLISH A NEW WINE RY OR VINEYARD IN TH E STATE; OR 11
(2) COMPLETE CAPITAL IMP ROVEMENTS AT AN EXIS TING WINERY OR 12
VINEYARD. 13
5–1903. 14
(A) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, THE DEPARTMENT 15
SHALL PROVIDE A GRAN T TO AN INDIVIDUAL O R A CORPORATION EQUAL TO 25% OF 16
THE QUALIFIED CAPITA L EXPENSES INCURRED IN CONNECTION WITH : 17
(1) THE ESTABLISHMENT OF A NEW WINERY OR VINE YARD; OR 18
(2) CAPITAL IMPROVEMENTS MADE TO AN EXISTING WINERY OR 19
VINEYARD. 20
(B) (1) BY SEPTEMBER 15 OF THE CALENDAR Y EAR IN WHICH THE 21
QUALIFIED CAPITAL EX PENSES ARE PAID OR I NCURRED, AN INDIVIDUAL OR A 22
CORPORATION MAY SUBM IT AN APPLICATION TO THE DEPARTMENT FOR A GRAN T 23
AUTHORIZED UNDER THI S SECTION. 24
(2) (I) FOR ANY FISCAL YEAR , THE TOTAL AMOUNT OF GRANTS 25
APPROVED BY T HE DEPARTMENT UNDER THIS SECTION MAY NOT EXCE ED 26
$1,000,000. 27
(II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR UNDER 28
THIS SECTION EXCEEDS THE MAXIMUM SPECIFIE D UNDER SUBPARAGRAPH (I) OF 29 HOUSE BILL 1388 5
THIS PARAGRAPH , THE DEPARTMENT SHALL APPR OVE A GRANT FOR EACH 1
APPLICANT IN AN AMOU NT EQUAL TO THE PROD UCT OF MULTIPLYING T HE AMOUNT 2
APPLIED FOR BY THE A PPLICANT TIMES A FRA CTION: 3
1. THE NUMERATOR OF WHI CH IS THE MAXIMUM 4
SPECIFIED UNDER SUBP ARAGRAPH (I) OF THIS PARAGRAPH ; AND 5
2. THE DENOMINATOR OF W HICH IS THE TOTAL OF ALL 6
GRANTS APPLIED FOR B Y ALL APPLICANTS FOR THAT CALENDAR YEAR . 7
(3) ON OR BEFORE DECEMBER 15 EACH YEAR, THE DEPARTMENT 8
SHALL AWARD THE GRAN TS AUTHORIZED UNDER THIS SECTION TO EACH ELIGIBLE 9
APPLICANT. 10
(C) FOR EACH FISCAL YEAR , THE GOVERNOR SHALL INCLUDE IN THE 11
ANNUAL BUDGET BILL A N APPROPRIATION OF A T LEAST $1,000,000 TO THE 12
DEPARTMENT TO AWARD G RANTS UNDER THE PROGRAM. 13
(D) THE DEPARTMENT SHALL ADOP T REGULATIONS TO : 14
(1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ; AND 15
(2) SPECIFY CRITERIA AND PROCEDU RES FOR APPLICATION FOR, 16
APPROVAL OF , AND MONITORING CONTI NUING ELIGIBILITY FO R THE GRANTS 17
AUTHORIZED UNDER THI S SECTION. 18
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 19
1, 2022. 20