EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*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
Re–referred to: Appropriations, March 5, 2022
Committee Report: Favorable
House action: Adopted
Read second time: April 1, 2022
CHAPTER ______
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
2 HOUSE BILL 1388
5–1901. 1
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(B) “PROGRAM” MEANS THE WINERY AND VINEYARD ECONOMIC 4
DEVELOPMENT GRANT PROGRAM ESTABLISHED U NDER § 5–1902 OF THIS 5
SUBTITLE. 6
(C) “QUALIFIED CAPITAL EXP ENSES” MEANS ALL EXPENDITUR ES MADE BY 7
AN INDIVIDUAL OR A C ORPORATION FOR THE P URCHASE AND INSTALLA TION OF 8
EQUIPMENT OR AGRICUL TURAL MATERIALS FOR USE IN THE PRODUCTIO N OF 9
AGRICULTURAL PRODUCTS AT A VINEYARD OR A WINE RY, INCLUDING: 10
(1) BARRELS; 11
(2) BINS; 12
(3) BOTTLING EQUIPMENT ; 13
(4) CANOPY MANAGEMENT MA CHINES; 14
(5) CAPSULING EQUIPMENT ; 15
(6) CHEMICALS; 16
(7) CORKERS; 17
(8) CRUSHERS; 18
(9) DESTEMMERS ; 19
(10) FERMENTERS OR OTHER RECOGNIZED FERMENTAT ION DEVICES; 20
(11) FERTILIZER AND SOIL AMENDMENTS ; 21
(12) FILTERS; 22
(13) FRUIT HARVESTERS ; 23
(14) FRUIT PLANTS; 24
(15) HOSES; 25 HOUSE BILL 1388 3
(16) IRRIGATION EQUIPMENT ; 1
(17) LABELING EQUIPMENT ; 2
(18) LUGS; 3
(19) MOWERS; 4
(20) POLES; 5
(21) POSTS; 6
(22) PRESSES; 7
(23) PRUNING EQUIPMENT ; 8
(24) PUMPS; 9
(25) REFRACTOMETERS ; 10
(26) REFRIGERATION EQUIPM ENT; 11
(27) SEEDERS; 12
(28) SOIL; 13
(29) SMALL TOOLS; 14
(30) TANKS; 15
(31) TRACTORS; 16
(32) VATS; 17
(33) WEEDING AND SPRAYING EQUIPMENT; 18
(34) WINE TANKS; 19
(35) WIRE; AND 20
(36) ANY OTHER ITEMS AS A PPROVED BY THE DEPARTMENT . 21
4 HOUSE BILL 1388
(D) “VINEYARD” MEANS AGRICULTURAL L ANDS LOCATED IN THE STATE 1
CONSISTING OF AT LEA ST 1 CONTIGUOUS ACRE DEDI CATED TO THE GROWING OF 2
GRAPES THAT ARE USED OR ARE INTENDED TO B E USED IN THE PRODUC TION OF 3
WINE BY A WINERY AS WELL AS ANY PLANTS O R OTHER IMPROVEMENTS LOCATED 4
ON THE AGRICULTURAL LANDS. 5
(E) “WINERY” MEANS AN ESTABLISHME NT OR A LOCATION IDE NTIFIED IN: 6
(1) A CLASS 3 WINERY LICENSE ISSUE D UNDER § 2–205 OF THE 7
ALCOHOLIC BEVERAGES ARTICLE; OR 8
(2) A CLASS 4 LIMITED WINERY LICEN SE ISSUED UNDER § 2–206 OF 9
THE ALCOHOLIC BEVERAGES ARTICLE. 10
5–1902. 11
(A) THERE IS A WINERY AND VINEYARD ECONOMIC DEVELOPMENT GRANT 12
PROGRAM IN THE DEPARTMENT . 13
(B) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FINANCIAL 14
ASSISTANCE TO INDIVI DUALS AND CORPORATIO NS TO: 15
(1) ESTABLISH A NEW WINE RY OR VINEYARD IN TH E STATE; OR 16
(2) COMPLETE CAPITAL IMP ROVEMENTS AT AN EXIS TING WINERY OR 17
VINEYARD. 18
5–1903. 19
(A) SUBJECT TO THE LIMITA TIONS OF THIS SECTIO N, THE DEPARTMENT 20
SHALL PROVIDE A GRAN T TO AN INDIVIDUAL O R A CORPORATION EQUA L TO 25% OF 21
THE QUALIFIED CAPITA L EXPENSES INCURRED IN CONNECTION WITH : 22
(1) THE ESTABLISHMENT OF A NEW WINERY OR VINE YARD; OR 23
(2) CAPITAL IMPROVEMENTS MADE TO AN EXISTING WINERY OR 24
VINEYARD. 25
(B) (1) BY SEPTEMBER 15 OF THE CALENDAR YEAR IN WHICH THE 26
QUALIFIED CAPITAL EX PENSES ARE PAID OR I NCURRED, AN INDIVIDUAL OR A 27
CORPORATION MAY SUBM IT AN APPLICATION TO THE DEPARTMENT FOR A GRAN T 28
AUTHORIZED UNDER THI S SECTION. 29
HOUSE BILL 1388 5
(2) (I) FOR ANY FISCAL YEAR , THE TOTAL AMOUNT OF GRANTS 1
APPROVED BY THE DEPARTMENT UNDER THIS SECTION MAY NOT EXCE ED 2
$1,000,000. 3
(II) IF THE TOTAL AMOUNT O F GRANTS APPLIED FOR UNDER 4
THIS SECTION EXCEEDS THE MAXIMUM SPECIFIED UNDER SUBP ARAGRAPH (I) OF 5
THIS PARAGRAPH , THE DEPARTMENT SHALL APPR OVE A GRANT FOR EACH 6
APPLICANT IN AN AMOU NT EQUAL TO THE PROD UCT OF MULTIPLYING T HE AMOUNT 7
APPLIED FOR BY THE A PPLICANT TIMES A FRA CTION: 8
1. THE NUMERATOR OF WHICH IS THE MAXI MUM 9
SPECIFIED UNDER SUBP ARAGRAPH (I) OF THIS PARAGRAPH ; AND 10
2. THE DENOMINATOR OF W HICH IS THE TOTAL OF ALL 11
GRANTS APPLIED FOR B Y ALL APPLICANTS FOR THAT CALENDAR YEAR . 12
(3) ON OR BEFORE DECEMBER 15 EACH YEAR, THE DEPARTMENT 13
SHALL AWARD THE GRANTS AUTHORIZED UNDER THI S SECTION TO EACH EL IGIBLE 14
APPLICANT. 15
(C) FOR EACH FISCAL YEAR , THE GOVERNOR SHALL INCLUD E IN THE 16
ANNUAL BUDGET BILL A N APPROPRIATION OF A T LEAST $1,000,000 TO THE 17
DEPARTMENT TO AWARD G RANTS UNDER THE PROGRAM. 18
(D) THE DEPARTMENT SHALL ADOP T REGULATIONS TO : 19
(1) IMPLEMENT THE PROVIS IONS OF THIS SECTION ; AND 20
(2) SPECIFY CRITERIA AND PROCEDURES FOR APPLI CATION FOR, 21
APPROVAL OF , AND MONITORING CONTI NUING ELIGIBILITY FO R THE GRANTS 22
AUTHORIZED UNDER THI S SECTION. 23
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 24
1, 2022. 25