EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0826*
SENATE BILL 826
C8 2lr2541
CF 2lr2659
By: Senators Klausmeier, Bailey, Carozza, Eckardt, Jackson, and West
Introduced and read first time: February 7, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Maryland Watermen’s Micro loan 2
Program – Establishment 3
FOR the purpose of establishing the Maryland Watermen’s Microloan Program in the 4
Maryland Agricultural and Resource–Based Industry Development Corporation; 5
providing for certain loans to eligible watermen and seafood processing businesses 6
under the Program; and generally relating to the Maryland Watermen’s Microloan 7
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 SENATE BILL 826
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 ENACTE D 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 FIS H LICENSE UNDER § 4–701 OF THE 22
NATURAL RESOURCES ARTICLE; AND 23
(II) CAN DEMONSTRATE , THROUGH THE SUBMISSI ON OF THE 24
TWO MOST RECENT FEDERAL INCOM E TAX RETURNS AND OT HER SUPPORTING 25
DOCUMENTS , THAT AT LEAST 50% OF THE INDIVIDUAL ’S ANNUAL INCOME IS 26
DERIVED FROM COMMERC IAL SEAFOOD HARVESTING. 27
(4) “PROGRAM” MEANS THE MARYLAND WATERMEN’S MICROLOAN 28
PROGRAM. 29
(5) “QUALIFIED COMMERCIAL FISHERMAN ” INCLUDES: 30 SENATE BILL 826 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 CONTINU E COMMERCIAL OPERATI ONS IN THE STATE, 6
INCLUDING FOR PURCHASING: 7
(1) BOATS; 8
(2) MECHANICAL EQUIPMENT ; 9
(3) FISHING GEAR; 10
(4) FISHING QUOTA ; AND 11
(5) ANY OTHER ITEM USED IN C OMMERCIAL SEAFOOD HA RVESTING. 12
(D) THE CORPORATION SHALL IMP LEMENT AND ADMINISTE R THE 13
PROGRAM IN ACCORDANCE WITH THIS SECTION . 14
(E) (1) THROUGH JUNE 30, 2025, ONLY GENERATIONAL WAT ERMEN ARE 15
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM. 16
(2) STARTING JULY 1, 2025, THE FOLLOWING PERSONS ARE 17
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM: 18
(I) GENERATIONAL WATERME N; 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 AN APPLICANT; 24
(II) THE AMOUNT OF LOAN T O BE GIVEN TO A BORR OWER; 25 4 SENATE BILL 826
(III) THE TERMS AND CONDITIONS OF A LOAN CONTRACT ; AND 1
(IV) THE AMOUNT OF DEB T FORGIVENESS THAT M AY BE 2
PROVIDED TO A BORROW ER FOR LOAN REPAYMEN T PERFORMANCE . 3
(2) A LOAN MADE UNDER THE PROGRAM SHALL BE AT LEAST $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 PERIOD 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