SENATE AMENDED
        PRIOR PRINTER'S NOS. 3200, 3239               PRINTER'S NO. 3722

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2294 Session of 1984


        INTRODUCED BY MANDERINO, RYAN, MORRIS, GRIECO, IRVIS, RUDY,
           WASS, HONAMAN, PIEVSKY, DeVERTER, HAYES, HOEFFEL, BOWSER,
           LLOYD, JOHNSON, AFFLERBACH, FARGO, FREEMAN, MERRY, PUNT,
           ITKIN, BURD, DOMBROWSKI, GANNON, TRELLO, KOSINSKI, McHALE,
           PRATT, MAYERNIK, STEWART, WOZNIAK, CORDISCO, DeLUCA,
           STEIGHNER, GALLAGHER, KASUNIC, DALEY, COHEN, CESSAR, WAMBACH,
           PETRARCA, COY, D. R. WRIGHT, NOYE, DORR, RUDY, B. SMITH,
           HERSHEY, SALOOM, MADIGAN, SEMMEL, WARGO, SIRIANNI, PITTS,
           BELFANTI, VROON, GRUPPO, STUBAN, DeWEESE, KENNEDY, MURPHY,
           COLE, SERAFINI, GREENWOOD, COSLETT, SCHULER, GEORGE, STAIRS,
           WACHOB, MICHLOVIC, COWELL, E. Z. TAYLOR, FEE, CALTAGIRONE,
           RYBAK, PISTELLA, KUKOVICH, SHOWERS, BALDWIN, CAPPABIANCA,
           McCALL, PRESTON, BATTISTO, DEAL, RAPPAPORT, OLIVER, SEVENTY,
           CLARK, DUFFY, MRKONIC, HERMAN, LEVI, KLINGAMAN, MANMILLER,
           BUNT, SAURMAN, MOWERY, CLYMER, REINARD, TELEK, LEHR, DAVIES,
           BROUJOS AND HALUSKA, JUNE 13, 1984

        SENATOR TILGHMAN, APPROPRIATIONS, IN SENATE, AS AMENDED,
           NOVEMBER 20, 1984

                                     AN ACT

     1  Providing for agricultural development; establishing the          <--
     2     Agricultural Development Advisory Committee and providing for
     3     its powers and duties; providing for certain guaranteed loans
     4     and interest deferral; providing further duties of the
     5     Secretary and Department of Agriculture and the Secretary and
     6     Department of Commerce; and making an appropriation.

     7                         TABLE OF CONTENTS
     8  Section  1.  Short title.
     9  Section  2.  Definitions.
    10  Section  3.  The Agricultural Development Advisory Committee.
    11  Section  4.  Reports to General Assembly.
    12  Section  5.  General powers and duties of the secretary.

     1  Section  6.  Review of applications by the Secretary of
     2                 Commerce.
     3  Section  7.  Review of applications by the committee and the
     4                 secretary.
     5  Section  8.  Eligibility for interest deferrals and loan
     6                 guarantees and limitations thereon.
     7  Section  9.  Sale or conveyance by applicant.
     8  Section 10.  Rules and regulations.
     9  Section 11.  Limitation on amount of interest deferrals
    10                 and loan guarantees.
    11  Section 12.  Conflict of interest prohibited.
    12  Section 13.  Appropriation.
    13  Section 14.  Limitation.
    14  Section 15.  Effective date.
    15  AMENDING THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937          <--
    16     P.L.2897, NO.1), ENTITLED "AN ACT ESTABLISHING A SYSTEM OF
    17     UNEMPLOYMENT COMPENSATION TO BE ADMINISTERED BY THE
    18     DEPARTMENT OF LABOR AND INDUSTRY AND ITS EXISTING AND NEWLY
    19     CREATED AGENCIES WITH PERSONNEL (WITH CERTAIN EXCEPTIONS)
    20     SELECTED ON A CIVIL SERVICE BASIS; REQUIRING EMPLOYERS TO
    21     KEEP RECORDS AND MAKE REPORTS, AND CERTAIN EMPLOYERS TO PAY
    22     CONTRIBUTIONS BASED ON PAYROLLS TO PROVIDE MONEYS FOR THE
    23     PAYMENT OF COMPENSATION TO CERTAIN UNEMPLOYED PERSONS;
    24     PROVIDING PROCEDURE AND ADMINISTRATIVE DETAILS FOR THE
    25     DETERMINATION, PAYMENT AND COLLECTION OF SUCH CONTRIBUTIONS
    26     AND THE PAYMENT OF SUCH COMPENSATION; PROVIDING FOR
    27     COOPERATION WITH THE FEDERAL GOVERNMENT AND ITS AGENCIES;
    28     CREATING CERTAIN SPECIAL FUNDS IN THE CUSTODY OF THE STATE
    29     TREASURER; AND PRESCRIBING PENALTIES," PROVIDING FOR BENEFITS
    30     FOR CERTAIN SEASONAL WORKERS.
    19840H2294B3722                  - 2 -

     1     The General Assembly of the Commonwealth of Pennsylvania
     2  hereby enacts as follows:
     3  Section 1.  Short title.                                          <--
     4     This act shall be known and may be cited as the Agricultural
     5  Development Act.
     6  Section 2.  Definitions.
     7     The following words and phrases when used in this act shall
     8  have the meanings given to them in this section unless the
     9  context clearly indicates otherwise:
    10     "Agricultural activity" or "farming."  The commercial
    11  production of agricultural crops, livestock or livestock
    12  products, poultry products, milk or dairy products, or fruits
    13  and other horticultural products.
    14     "Applicant."  Any family farm enterprise applying for a
    15  family farm loan guarantee or an interest deferral.
    16     "Area loan organization."  A local development district of
    17  the Appalachian Regional Commission, an industrial development
    18  corporation organized and existing under the act of May 17, 1956
    19  (1955 P.L.1609, No.537), known as the Pennsylvania Industrial
    20  Development Authority Act, or any other nonprofit economic
    21  development organization certified by the Secretary of
    22  Agriculture and the Secretary of Commerce as possessing an
    23  acceptable loan review committee, professional staff support and
    24  such other qualifications as are necessary to evaluate and
    25  administer loan guarantees and interest deferrals made under the
    26  provisions of this act.
    27     "Committee."  The Agricultural Development Advisory
    28  Committee.
    29     "Department."  The Department of Agriculture.
    30     "Family farm corporation."  A corporation formed for the
    19840H2294B3722                  - 3 -

     1  purpose of farming in which the majority of the voting stock is
     2  held by and the majority of the stockholders are natural
     3  persons, or the spouses of such persons or other persons related
     4  to such persons or spouses and at least one of such majority
     5  stockholders is residing on or actively operating or managing
     6  the farm and none of the stockholders of which are corporations.
     7     "Family farm enterprise."  A natural person, family farm
     8  corporation or family farm partnership engaged in farming,
     9  including the processing and marketing of its agricultural
    10  commodities directly, provided that those agricultural
    11  commodities are or would be produced on the farm for which
    12  financial assistance is sought.
    13     "Family farm partnership."  A general partnership entered
    14  into for the purpose of farming having no more than three
    15  unrelated members and having at least one member residing on or
    16  actively operating or managing the farm.
    17     "Farmland."  Land in the Commonwealth that is capable of
    18  supporting the commercial production of agricultural crops,
    19  livestock or livestock products, poultry products, milk or dairy
    20  products, fruit or other horticultural products and land in the
    21  Commonwealth on which a family farm enterprise would process or
    22  market its agricultural commodities directly, provided that
    23  those agricultural commodities are or would be produced on the
    24  farm for which financial assistance is sought.
    25     "Federal agency."  Includes the United States of America, the
    26  President of the United States of America and any department or
    27  corporation, agency or instrumentality heretofore or hereafter
    28  created, designated or established by the United States of
    29  America.
    30     "Lender."  Any bank, savings bank, mutual savings bank,
    19840H2294B3722                  - 4 -

     1  building and loan association and savings and loan association
     2  organized under the laws of this Commonwealth or the United
     3  States, trust companies, trust companies acting as fiduciaries
     4  and other financial institutions subject to the supervision of
     5  the Department of Banking; and any foreign or domestic
     6  corporation engaged in the business of insurance which is
     7  subject to the supervision of the Insurance Commissioner; and
     8  any financial institutions operating under the supervision of
     9  the Federal farm credit administration. The term shall also mean
    10  the seller of the property in cases of seller-sponsored loan or
    11  purchase money loan.
    12     "Secretary."  The Secretary of Agriculture.
    13  Section 3.  The Agricultural Development Advisory Committee.
    14     (a)  Establishment.--There is hereby created the Agricultural
    15  Development Advisory Committee.
    16     (b)  Composition.--The committee shall be composed of the
    17  following:
    18         (1)  The Secretary of Agriculture, who will serve as
    19     chairman.
    20         (2)  The chairmen of the Senate and House Agriculture and
    21     Rural Affairs Committees or their respective designees.
    22         (3)  Six members to be appointed by the Secretary of
    23     Agriculture as follows:
    24             (i)  one officer from a commercial lending
    25         institution experienced in agricultural financing;
    26             (ii)  three farmers;
    27             (iii)  one officer from a farm credit association;
    28         and
    29             (iv)  one agricultural economist.
    30  A majority of the committee shall constitute a quorum. In
    19840H2294B3722                  - 5 -

     1  appointing the three farmers to the committee, the Secretary of
     2  Agriculture may consider farmers recommended by the Statewide
     3  general farm organizations.
     4     (c)  Appointment, terms and vacancies.--The members of the
     5  committee initially appointed by the Secretary of Agriculture
     6  and any person appointed by the secretary to fill a vacancy
     7  shall serve until June 30, 1987.
     8     (d)  Staff services.--The Department of Agriculture shall
     9  provide staff services for carrying out its powers and duties
    10  under this act, including liaison between the committee and
    11  lenders, the Department of Agriculture, the Department of
    12  Commerce, and other agencies of the Commonwealth whose
    13  facilities and services may be useful to the committee in its
    14  work.
    15     (e)  Expenses of committee members.--The members of the
    16  committee shall be entitled to no compensation for their
    17  services as members, but shall be entitled to reimbursement for
    18  all necessary expenses incurred in connection with the
    19  performance of their duties as members of the committee.
    20  Section 4.  Reports to General Assembly.
    21     On or before March 1 of each year in which loan guarantees or
    22  interest deferrals are outstanding, the secretary shall submit a
    23  report to the Secretary of the Senate and the Chief Clerk of the
    24  House of Representatives detailing each loan guarantee and
    25  interest deferral accepted or rejected by type, amount, interest
    26  rate, lending institution, location, dates of application and
    27  final decision, type of farm, and acreage of farm. The secretary
    28  shall also estimate the amount of farmland preserved and the
    29  increase in the amount of farm receipts in the Commonwealth due
    30  to this program.
    19840H2294B3722                  - 6 -

     1  Section 5.  General powers and duties of the secretary.
     2     The secretary may exercise all powers necessary or
     3  appropriate to carry out this act, including the following
     4  powers, in addition to others herein granted:
     5         (1)  To review all applications for interest deferrals
     6     and loan guarantees under this act.
     7         (2)  To determine, after consideration of the
     8     recommendations of the Secretary of Commerce and the
     9     committee, which applications for interest deferrals and loan
    10     guarantees should be rejected, which applications should be
    11     approved, and which applications should be approved subject
    12     to special conditions.
    13         (3)  To determine, after consideration of the
    14     recommendations of the Secretary of Commerce and the
    15     committee, the criteria and procedures of the interest
    16     deferral and loan guarantee programs.
    17         (4)  To conduct examinations necessary to:
    18             (i)  the determination of an applicant's eligibility
    19         to receive an interest deferral or loan guarantee;
    20             (ii)  the determination of the economic viability of
    21         the interest deferral or loan guarantee; and
    22             (iii)  the power to review the operation of any
    23         family farm enterprise that has received an interest
    24         deferral or loan guarantee.
    25         (5)  In determining eligibility for an interest deferral
    26     or a loan guarantee, to consult with the committee and staff
    27     of any local farm credit association or agricultural
    28     stabilization and conservation service office in the area
    29     where an applicant resides or where the family farm
    30     enterprise is located or proposed to be located.
    19840H2294B3722                  - 7 -

     1         (6)  To prescribe, in conjunction with the Secretary of
     2     Commerce, the form and manner for the submission of
     3     applications for interest deferrals and loan guarantees and
     4     the information to be included in those applications.
     5         (7)  To determine the information to be provided by the
     6     applicant, the lender and the committee.
     7         (8)  To do all other acts and things necessary or
     8     convenient to carry out the powers granted to him by this act
     9     or any other acts.
    10  Section 6.  Review of applications by the Secretary of Commerce.
    11     (a)  Form of application.--Prior to recommending the approval
    12  or rejection of any interest deferral or loan guarantee
    13  authorized by this act, the Secretary of Commerce shall receive
    14  from the prospective borrower an application in the form and
    15  manner prescribed by the Secretary of Agriculture and the
    16  Secretary of Commerce together with any other information as the
    17  Secretary of Agriculture shall require the prospective borrower
    18  and the prospective lender to provide.
    19     (b)  Review of application.--Upon receipt of a properly
    20  submitted and documented application, the Secretary of Commerce
    21  shall conduct a financial review of the application and
    22  recommend approval, approval with special conditions, or
    23  rejection of the application on the basis of the following
    24  criteria and the eligibility criteria and loan limits prescribed
    25  by section 8:
    26         (1)  The ability of the applicant to meet and satisfy all
    27     debt service as it becomes due and payable.
    28         (2)  The sufficiency of available collateral, including
    29     satisfactory lien positions on real and personal property
    30     which shall consist of no less than second lien positions on
    19840H2294B3722                  - 8 -

     1     such real and personal property.
     2         (3)  The relevant criminal and credit history and ratings
     3     of the applicant as determined from credit reporting services
     4     and other sources.
     5         (4)  The eligibility of the applicant and the project for
     6     the guarantee or interest deferral which is being sought.
     7         (5)  The capital needs of the applicant.
     8         (6)  The payment to date of all tax obligations due and
     9     owing by the applicant to the Commonwealth or any political
    10     subdivision thereof.
    11         (7)  The availability of evidence that insufficient
    12     private funds are available at reasonable rates and terms
    13     within the necessary time without the requested assistance.
    14     (c)  Transmittal to the Secretary of Agriculture.--Following
    15  the review and recommendation, the Secretary of Commerce shall
    16  transmit the application and the recommendation on that
    17  application to the Secretary of Agriculture together with the
    18  rationale for that recommendation and any other information
    19  requested by the Secretary of Agriculture.
    20     (d)  Use of area loan organizations.--In carrying out his
    21  duties and responsibilities under this section, the Secretary of
    22  Commerce may utilize area loan organizations which have been
    23  certified by the Secretary of Agriculture and the Secretary of
    24  Commerce. In determining if an area loan organization should be
    25  certified for the purposes of this act, the secretaries shall
    26  consider, in addition to other relevant factors, the expertise
    27  of that area loan organization for the purposes of performing
    28  some duties and responsibilities under this section but deny
    29  certification for the purpose of performing other duties and
    30  responsibilities for which the organization is determined not to
    19840H2294B3722                  - 9 -

     1  have sufficient expertise or personnel. Area loan organizations
     2  may establish and charge reasonable fees for processing loan
     3  guarantees and interest deferrals under this act with the
     4  approval of the secretary and the committee.
     5  Section 7.  Review of applications by the committee and the
     6                 Secretary of Agriculture.
     7     (a)  Application form.--Prior to recommending the approval or
     8  rejection of any interest deferral or loan guarantee authorized
     9  by this act, the committee shall receive from the prospective
    10  borrower an application in the form and manner prescribed by the
    11  secretary together with any such other information as the
    12  secretary shall require the prospective borrower and the
    13  prospective lender to provide.
    14     (b)  Majority required.--The committee shall not recommend
    15  the approval of an application for an interest deferral or a
    16  loan guarantee unless a majority of the quorum present at a
    17  meeting vote in favor of the action.
    18     (c)  Financial status of borrower.--In determining whether to
    19  recommend any interest deferral or loan guarantee in accordance
    20  with this act, the committee shall give primary consideration to
    21  the borrower's ability to repay and secondary consideration to
    22  the security available.
    23     (d)  Recommendation to secretary.--The committee shall
    24  forward its recommendation of the approval or rejection of any
    25  interest deferral or loan guarantee to the secretary together
    26  with the rationale for the committee's decision, any other
    27  information requested by the secretary and any recommendation of
    28  special conditions to be placed on an approved interest deferral
    29  or loan guarantee.
    30     (e)  Criteria for committee recommendations.--In determining
    19840H2294B3722                 - 10 -

     1  whether to recommend the approval or rejection of any interest
     2  deferral or loan guarantee, the committee shall adhere to the
     3  eligibility criteria and loan limits prescribed by section 8.
     4     (f)  Action by the secretary.--The secretary shall grant an
     5  interest deferral or a loan guarantee to an applicant only after
     6  consideration of the recommendation of the committee and the
     7  recommendation of the Secretary of Commerce and only in
     8  accordance with the eligibility criteria and loan limits
     9  prescribed by section 8. The secretary may grant an interest
    10  deferral or a loan guarantee in a lesser amount and on less
    11  favorable terms than recommended by the committee or the
    12  Secretary of Commerce and may impose conditions not recommended
    13  by the committee or the Secretary of Commerce.
    14  Section 8.  Eligibility for interest deferrals and loan
    15                 guarantees and limitations thereon.
    16     (a)  Eligibility criteria.--To be eligible for an interest
    17  deferral or a loan guarantee, an applicant must demonstrate:
    18         (1)  That he is a resident of the Commonwealth, or that
    19     its principal operating or managing members or shareholders
    20     in the case of either a family farm partnership or a family
    21     farm corporation are Pennsylvania residents or show
    22     sufficient evidence that he or they intend to become a
    23     resident or residents. If the applicant is a corporation, it
    24     must be a Pennsylvania corporation in order to be eligible.
    25         (2)  That the applicant or the principal operating or
    26     managing members or shareholders thereof have sufficient
    27     education, training or experience in the type of farming for
    28     which he or they wish the interest deferral or loan guarantee
    29     and will participate in a farm management program, approved
    30     by the secretary, for the duration of the loan on which the
    19840H2294B3722                 - 11 -

     1     interest will be deferred or for the duration of the loan
     2     guarantee.
     3         (3)  That the applicant has been processed by a lender
     4     for the loan on which the interest deferral or loan guarantee
     5     is sought and that the lender will make and service such
     6     loan.
     7         (4)  That the applicant will use the loan proceeds for
     8     the agricultural purposes set forth in the application and
     9     that the farmland or family farm enterprise is located in
    10     Pennsylvania.
    11         (5)  That the applicant is credit worthy, based on the
    12     applicant's net worth, cash flow projections, and credit
    13     rating and on the type of farmland or family farm enterprise
    14     involved.
    15         (6)  That the terms offered by the lender without an
    16     interest deferral or loan guarantee are not adequate to
    17     permit the applicant to carry out the agricultural purposes
    18     for which he is seeking the loan.
    19         (7)  That the loan guarantee or interest deferral would
    20     facilitate the continued operation or transfer of a farm in
    21     Pennsylvania which is currently active, would help the
    22     applicant to replace all or part of its production with
    23     production of a commodity or commodities for which there is
    24     more likely to be an adequate market, or would help the
    25     family farm enterprise to process or market directly a
    26     commodity or commodities produced on the farm for which
    27     financial assistance is sought.
    28     (b)  Loan limit for acquiring farmland and farm structures.--
    29  The secretary may guarantee a loan or loans not to exceed the
    30  lesser of 90% of the amount of the loan or loans or $200,000 for
    19840H2294B3722                 - 12 -

     1  each family farm enterprise for a term not to exceed 20 years if
     2  the loan is guaranteed for the purpose of acquiring farmland,
     3  farm structures or a combination thereof.
     4     (c)  Loan limit for acquiring equipment, livestock and other
     5  capital assets.--The secretary may guarantee a loan or loans not
     6  to exceed the lesser of 90% of the amount of the loan or loans
     7  or $150,000 for each family farm enterprise for a term not to
     8  exceed seven years if the loan guaranteed is for the purchase of
     9  capital assets, such as, but not limited to, equipment or
    10  livestock and horticultural assets.
    11     (d)  Loan limit for acquiring noncapital assets.--The
    12  secretary may guarantee a loan or loans not to exceed the lesser
    13  of 90% of the amount of the loan or loans or $50,000 for each
    14  family farm enterprise for a term not to exceed one year if the
    15  loan guaranteed is for the purchase of fertilizer, seed,
    16  livestock feed or other supplies normally used for agricultural
    17  activity or farming.
    18     (e)  Interest deferrals.--The secretary may make the interest
    19  payments for an applicant for up to the first three years of a
    20  loan if the loan is guaranteed in accordance with this section
    21  or is in the amount and for the purposes for which a loan may be
    22  guaranteed in accordance with this section. The secretary shall
    23  prescribe the period during which, and the terms under which,
    24  the applicant shall reimburse the Commonwealth for the interest
    25  which the secretary paid to the lender on the applicant's behalf
    26  and the security which the applicant must provide to assure
    27  reimbursement to the Commonwealth.
    28  Section 9.  Sale or conveyance by applicant.
    29     (a)  Obligation due on sale.--Any applicant who sells or
    30  conveys the property for which an interest deferral or loan
    19840H2294B3722                 - 13 -

     1  guarantee was granted shall immediately return the entire
     2  indebtedness still owed to the Commonwealth or to the lender, if
     3  any. The new owner may negotiate an interest deferral or loan
     4  guarantee in his own right, but under no circumstances may the
     5  original loan be assumed by the new owner or the property be
     6  sold subject to the loan. This subsection is not intended to
     7  prohibit an applicant from granting a security interest in the
     8  property for the purposes of securing an additional loan.
     9     (b)  Default.--Any applicant who fails to maintain the land
    10  covered by an interest deferral or a loan guarantee for a period
    11  of time longer than one year shall be in default. Such a default
    12  may be waived by the secretary, after consultation with the
    13  committee and the Secretary of Commerce, in the event of a
    14  physical disability or other extenuating circumstances.
    15  Section 10.  Rules and regulations.
    16     The secretary may, in the manner provided by law, promulgate
    17  the rules and regulations and forms necessary to carry out this
    18  act.
    19  Section 11.  Limitation on amount of interest deferrals and
    20                 loan guarantees.
    21     The sum of all outstanding interest deferrals and loan
    22  guarantees at any time shall not exceed $25,000,000. Under no
    23  circumstances shall the the Secretary of Agriculture, the
    24  Secretary of Commerce or the committee have power to pledge the
    25  credit or taxing power of the Commonwealth.
    26  Section 12.  Conflict of interest prohibited.
    27     No member of the committee or officer or employee of the
    28  Department of Agriculture or the Department of Commerce or
    29  member or employee of an area loan organization shall either
    30  directly or indirectly be a party to or be in any manner
    19840H2294B3722                 - 14 -

     1  interested in any contract or agreement under this act for any
     2  matter, cause or thing whatsoever by reason whereof any
     3  liability or indebtedness shall in any way be created against
     4  the Commonwealth, provided that nothing herein shall prohibit a
     5  commercial lending institution or a farm credit association from
     6  either directly or indirectly being a party to or being in any
     7  manner interested in any such contract or agreement if one of
     8  its officers is a member of the committee as long as such
     9  officer declares his conflict of interest and refrains from
    10  participating in any deliberation or vote on, or other action
    11  regarding, such contract or agreement. If any contract or
    12  agreement shall be made in violation of this section, the same
    13  shall be null and void and no action shall be maintained thereon
    14  against the Commonwealth.
    15  Section 13.  Appropriation.
    16     The sum of $10,000,000 is hereby appropriated to the
    17  Department of Agriculture from the Pennsylvania Economic
    18  Revitalization Fund for the purposes set forth in this act. The
    19  appropriation made hereby shall be a continuing appropriation.
    20  Section 14.  Limitation.
    21     No loan guarantees or interest deferrals pursuant to this act
    22  shall be approved after June 30, 1987.
    23  Section 15.  Effective date.
    24     This act shall take effect immediately.
    25     SECTION 1.  THE ACT OF DECEMBER 5, 1936 (2ND SP.SESS., 1937    <--
    26  P.L.2897, NO.1), KNOWN AS THE UNEMPLOYMENT COMPENSATION LAW, IS
    27  AMENDED BY ADDING A SECTION TO READ:
    28     SECTION 402.5.  ELIGIBILITY OF SEASONAL WORKERS.--(A)
    29  NOTWITHSTANDING ANY OTHER PROVISION OF THIS ACT WITH RESPECT TO
    30  SERVICE PERFORMED IN A SEASONAL OPERATION OR SEASONAL INDUSTRY,
    19840H2294B3722                 - 15 -

     1  BENEFITS SHALL NOT BE PAID TO A SEASONAL WORKER, BASED ON SUCH
     2  SERVICES, FOR ANY WEEK OF UNEMPLOYMENT OCCURRING OUTSIDE OF THE
     3  NORMAL SEASONAL PERIOD OF OPERATION, PROVIDED THERE IS A
     4  CONTRACT OR REASONABLE ASSURANCE THAT SUCH SEASONAL WORKER WILL
     5  PERFORM SERVICES IN THAT SEASONAL INDUSTRY IN HIS NEXT NORMAL
     6  SEASONAL PERIOD. HOWEVER, IF UPON PRESENTING HIMSELF FOR WORK IN
     7  HIS NEXT NORMAL SEASONAL PERIOD, THE INDIVIDUAL IS NOT OFFERED
     8  AN OPPORTUNITY TO PERFORM SUCH SERVICES, HIS CLAIMS FOR
     9  UNEMPLOYMENT COMPENSATION SHALL BE ACCEPTED RETROACTIVELY TO THE
    10  TIME THE INDIVIDUAL'S BENEFITS (BASED ON SEASONAL AND NON-
    11  SEASONAL WAGES) WOULD HAVE COMMENCED BUT FOR THIS SUBSECTION.
    12     (B)  UPON WRITTEN APPLICATION FILED WITH THE DEPARTMENT BY AN
    13  EMPLOYER, THE SECRETARY SHALL DETERMINE, AND MAY THEREAFTER
    14  REDETERMINE, IN ACCORDANCE WITH THE RULES AND REGULATIONS OF THE
    15  DEPARTMENT, THE NORMAL SEASONAL PERIOD DURING WHICH WORKERS ARE
    16  ORDINARILY EMPLOYED FOR THE PURPOSE OF CARRYING ON SEASONAL
    17  OPERATIONS IN THE SEASONAL INDUSTRY IN WHICH SUCH EMPLOYER IS
    18  ENGAGED. AN APPLICATION FOR SUCH DETERMINATION SHALL BE MADE ON
    19  FORMS PRESCRIBED BY THE DEPARTMENT. SUCH APPLICATION MUST BE
    20  MADE AT LEAST TWENTY (20) DAYS PRIOR TO THE ESTIMATED BEGINNING
    21  DATE OF THE NORMAL SEASONAL PERIOD FOR WHICH THE DETERMINATION
    22  IS REQUESTED. SIMULTANEOUSLY WITH THE FILING OF THE APPLICATION,
    23  THE EMPLOYER SHALL CONSPICUOUSLY DISPLAY ON THE EMPLOYER'S
    24  PREMISES IN A SUFFICIENT NUMBER OF PLACES A COPY OF THE FILING
    25  OF APPLICATION.
    26     (C)  AN EMPLOYER DETERMINED, IN ACCORDANCE WITH THE
    27  PROVISIONS OF THIS SECTION, TO BE A SEASONAL INDUSTRY OR A
    28  SEASONAL OPERATION SHALL BE REQUIRED TO CONSPICUOUSLY DISPLAY
    29  NOTICES OF THE SEASONAL DETERMINATION ON ITS PREMISES IN A
    30  SUFFICIENT NUMBER OF PLACES AS WILL FAIRLY ADVISE ITS EMPLOYES
    19840H2294B3722                 - 16 -

     1  OF THE ESTIMATED BEGINNING AND ESTIMATED ENDING DATES OF ITS
     2  NORMAL SEASONAL PERIOD. SUCH NOTICES SHALL BE PROVIDED BY THE
     3  DEPARTMENT.
     4     (D)  ANY SUCCESSOR OF A SEASONAL EMPLOYER SHALL BE DEEMED TO
     5  BE A SEASONAL INDUSTRY OR A SEASONAL OPERATION UNLESS SUCH
     6  SUCCESSOR SHALL, WITHIN ONE HUNDRED TWENTY (120) DAYS AFTER THE
     7  ACQUISITION, REQUEST CANCELLATION OF SUCH DETERMINATION.
     8     (E)  ANY DETERMINATION ISSUED UNDER THE PROVISIONS OF THIS
     9  SECTION SHALL BE SUBJECT TO REVIEW IN THE SAME MANNER AND TO THE
    10  SAME EXTENT AS ALL OTHER DETERMINATIONS ISSUED UNDER THIS ACT.
    11     (F)  BENEFITS PAYABLE TO ANY OTHERWISE ELIGIBLE INDIVIDUAL
    12  WHO IS DETERMINED TO BE A SEASONAL WORKER SHALL BE CALCULATED IN
    13  ACCORDANCE WITH THE PROVISIONS OF THIS SECTION FOR ANY BENEFIT
    14  YEAR WHICH IS ESTABLISHED ON OR AFTER THE BEGINNING DATE OF A
    15  DETERMINATION OF A SEASONAL INDUSTRY OR A SEASONAL OPERATION BY
    16  WHICH SUCH INDIVIDUAL WAS EMPLOYED DURING THE BASE YEAR
    17  APPLICABLE TO SUCH BENEFIT YEAR, AS IF SUCH DETERMINATION HAD
    18  BEEN EFFECTIVE IN SUCH BASE PERIOD.
    19     (G)  IN NO CASE SHALL A SEASONAL WORKER BE ELIGIBLE TO
    20  RECEIVE A TOTAL AMOUNT OF COMPENSATION IN A BENEFIT YEAR IN
    21  EXCESS OF THE MAXIMUM COMPENSATION PAYABLE FOR SUCH BENEFIT
    22  YEAR, AS PROVIDED IN SECTION 404 OF THIS ACT.
    23     (H)  FOR THE PURPOSES OF THIS SECTION, THE FOLLOWING
    24  DEFINITIONS SHALL APPLY:
    25     (1)  "FOOD PROCESSING OPERATION" MEANS THOSE SERVICES
    26  PERFORMED IN CONNECTION WITH COMMERCIAL CANNING OR COMMERCIAL
    27  FREEZING.
    28     (2)  "NORMAL SEASONAL PERIOD" MEANS THE NORMAL SEASONAL
    29  PERIOD, AS DETERMINED IN ACCORDANCE WITH SUBSECTION (B) OF THIS
    30  SECTION, DURING WHICH WORKERS ARE ORDINARILY EMPLOYED FOR THE
    19840H2294B3722                 - 17 -

     1  PURPOSE OF CARRYING ON SEASONAL OPERATIONS IN EACH SEASONAL
     2  INDUSTRY.
     3     (3)  "SEASONAL INDUSTRY" MEANS AN INDUSTRY, ESTABLISHMENT OR
     4  PROCESS WITHIN AN INDUSTRY WHICH, BECAUSE OF CLIMATIC CONDITIONS
     5  MAKING IT IMPRACTICAL OR IMPOSSIBLE TO DO OTHERWISE, CUSTOMARILY
     6  CARRIES ON FRUIT OR VEGETABLE FOOD PROCESSING OPERATIONS, OR
     7  BOTH, ONLY DURING A REGULARLY RECURRING PERIOD OF ONE HUNDRED
     8  FIFTY (150) DAYS OF WORK OR LESS IN A CALENDAR YEAR.
     9     (4)  "SEASONAL OPERATION" MEANS AN OPERATION IN WHICH IT IS
    10  CUSTOMARY FOR AN EMPLOYER ENGAGED IN A SEASONAL INDUSTRY AS
    11  DEFINED IN THIS SECTION, TO OPERATE ALL OR A PORTION OF ITS
    12  BUSINESS DURING A REGULARLY RECURRING PERIOD OF ONE HUNDRED
    13  FIFTY (150) DAYS OF WORK OR LESS FOR A NORMAL SEASONAL PERIOD
    14  DURING A CALENDAR YEAR. AN EMPLOYER MAY BE DETERMINED TO BE
    15  ENGAGED IN A SEASONAL INDUSTRY AS DEFINED IN THIS SECTION, WITH
    16  RESPECT TO A PORTION OF ITS BUSINESS, ONLY IF THAT PORTION,
    17  UNDER THE USUAL AND CUSTOMARY PRACTICE IN THE INDUSTRY, IS
    18  IDENTIFIABLE AS A FUNCTIONALLY DISTINCT OPERATION. AN EMPLOYER
    19  MAY OPERATE DURING MORE THAN ONE SEASONAL PERIOD DURING A
    20  CALENDAR YEAR. HOWEVER, EACH SUCH PERIOD SHOULD BE DEEMED TO BE
    21  A SEPARATE SEASONAL OPERATION.
    22     (5)  "SEASONAL WORKER" MEANS A WORKER WHO PERFORMS SERVICES
    23  FOR A SEPARATE SEASONAL OPERATION AS DEFINED IN THIS SECTION,
    24  FOR LESS THAN ONE HUNDRED FIFTY (150) DAYS OF WORK.
    25     SECTION 2.  THIS ACT SHALL APPLY TO BENEFIT YEARS BEGINNING
    26  ON AND AFTER JANUARY 6, 1985.
    27     SECTION 3.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.


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