EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1242*
HOUSE BILL 1242
C8 2lr2659
CF SB 826
By: Delegates Mautz, Adams, Arentz, Hornberger, Jacobs, and McComas
Introduced and read first time: February 11, 2022
Assigned to: Environment and Transportation and Ways and Means
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Maryland Watermen’s Microloan Program – 2
Establishment 3
FOR the purpose of establishing the Maryland Watermen’s Microloan Program and Fund 4
in the Maryland Agricultural and Resource –Based Industry Development 5
Corporation; providing for certain loans to eligible watermen and seafood processing 6
businesses under the Program; and generally relating to the Maryland Watermen’s 7
Microloan Program. 8
BY renumbering 9
Article – Economic Development 10
Section 10–526 and 10–527, respectively 11
to be Section 10–527 and 10–528, respectively 12
Annotated Code of Maryland 13
(2018 Replacement Volume and 2021 Supplement) 14
BY adding to 15
Article – Economic Development 16
Section 10–526 17
Annotated Code of Maryland 18
(2018 Replacement Volume and 2021 Supplement) 19
Preamble 20
WHEREAS, For generations Maryland watermen have labored to harvest delicious 21
fish and shellfish products from the Chesapeake Bay for the benefit of consumers in this 22
State and beyond; and 23
WHEREAS, Maryland’s iconic seafood industry has contributed greatly to 24
Maryland’s economy and stature as a wonderful tourist destination and a great place to 25
live; and 26 2 HOUSE BILL 1242
WHEREAS, Maryland watermen have historically had a difficult time accessing 1
affordable commercial capital and credit; and 2
WHEREAS, Maryland’s generational watermen have faced many challenges in 3
recent years and were especially hard–hit during the COVID–19 pandemic due to loss of 4
markets; now, therefore, 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That Section(s) 10–526 and 10–527, respectively, of Article – Economic Development of the 7
Annotated Code of Maryland be renumbered to be Section(s) 10–527 and 10–528, 8
respectively. 9
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 10
as follows: 11
Article – Economic Development 12
10–526. 13
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 14
INDICATED. 15
(2) “BEGINNER WATERMAN ” MEANS AN INDIVIDUAL WHO HAS: 16
(I) A TIDAL FISH LICENSE UNDER § 4–701 OF THE NATURAL 17
RESOURCES ARTICLE; AND 18
(II) AT LEAST 2 YEARS AND NOT MORE T HAN 10 YEARS OF 19
EXPERIENCE IN COMMER CIAL SEAFOOD HARVEST ING. 20
(3) “GENERATIONAL WATERMAN ” MEANS AN INDIVIDUAL WHO: 21
(I) HAS A TIDAL FISH LIC ENSE UNDER § 4–701 OF THE 22
NATURAL RESOURCES ARTICLE; AND 23
(II) CAN DEMONSTRATE , THROUGH THE SUBMISSI ON OF THE 24
TWO MOST RECENT FEDE RAL INCOME TAX RETUR NS AND OTHER SUPPORTING 25
DOCUMENTS , THAT AT LEAST 50% OF THE INDIVIDUAL ’S ANNUAL INCOME IS 26
DERIVED FROM COMMERC IAL SEAFOOD HARVESTI NG. 27
(4) “PROGRAM” MEANS THE MARYLAND WATERMEN’S MICROLOAN 28
PROGRAM. 29
(5) “QUALIFIED COMMERCIAL FISHERMAN” INCLUDES: 30 HOUSE BILL 1242 3
(I) A BEGINNER WATERMAN ; AND 1
(II) A GENERATIONAL WATER MAN. 2
(B) THERE IS A MARYLAND WATERMEN’S MICROLOAN PROGRAM IN THE 3
CORPORATION . 4
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE LOANS TO QUALIFIED 5
COMMERCIAL FISHERMEN TO CONTINUE COMMERCI AL OPERATIONS IN THE STATE, 6
INCLUDING FOR PURCHA SING: 7
(1) BOATS; 8
(2) MECHANICAL EQUIPMENT ; 9
(3) FISHING GEAR; 10
(4) FISHING QUOTA ; AND 11
(5) ANY OTHER ITEM USED IN COMMERCIAL SEAFOO D HARVESTING . 12
(D) THE CORPORATION SHALL IMP LEMENT AND ADMINISTE R THE 13
PROGRAM IN ACCO RDANCE WITH THIS SEC TION. 14
(E) (1) THROUGH JUNE 30, 2025, ONLY GENERATIONAL WA TERMEN ARE 15
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM. 16
(2) STARTING JULY 1, 2025, THE FOLLOWING PERSON S ARE 17
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM: 18
(I) GENERATION AL WATERMEN ; 19
(II) BEGINNER WATERMEN ; AND 20
(III) SEAFOOD PROCESSING B USINESSES. 21
(F) (1) FOR LOANS MADE UNDER THE PROGRAM, THE CORPORATION 22
SHALL DETERMINE : 23
(I) THE ELIGIBILITY OF A N APPLICANT; 24
(II) THE AMOUNT OF LOAN T O BE GIVEN TO A BORROWER ; 25 4 HOUSE BILL 1242
(III) THE TERMS AND CONDIT IONS OF A LOAN CONTR ACT; AND 1
(IV) THE AMOUNT OF DEBT F ORGIVENESS THAT MAY BE 2
PROVIDED TO A BORROW ER FOR LOAN REPAYMEN T PERFORMANCE . 3
(2) A LOAN MADE UNDER THE PROGRAM SHALL BE AT L EAST $7,000 4
AND NOT MORE THAN $15,000. 5
(3) A BORROWER UNDER THE PROGRAM MAY NOT HAVE MORE THAN 6
ONE OUTSTANDING LOAN FROM THE PROGRAM DURING ANY PE RIOD OF TIME. 7
(G) (1) FOR FISCAL YEARS 2024 AND 2025, THE GOVERNOR SHALL 8
INCLUDE IN THE ANNUA L STATE BUDGET BILL AN APPROPRIATION OF $750,000 TO 9
THE PROGRAM. 10
(2) THE APPROPRIATION IN PARAGRAPH (1) OF THIS SUBSECTION 11
SHALL BE DISTRIBUTED TO A SPECIAL FUND , TO BE USED ONLY TO : 12
(I) MAKE LOANS UNDER THE PROGRAM; AND 13
(II) PAY THE COSTS NECESS ARY TO ADMINISTER AN D OPERATE 14
THE PROGRAM. 15
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 16
October 1, 2022. 17