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.
*sb0826*
SENATE BILL 826
C8 2lr2541
CF HB 1242
By: Senators Klausmeier, Bailey, Carozza, Eckardt, Jackson, and West West,
Hershey, Jennings, and Salling
Introduced and read first time: February 7, 2022
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 4, 2022
CHAPTER ______
AN ACT concerning 1
Economic Development – Maryland Watermen’s Microloan 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
2 SENATE BILL 826
WHEREAS, For generations Maryland watermen have labored to harvest delicious 1
fish and shellfish products from the Chesapeake Bay for the benefit of consumers in this 2
State and beyond; and 3
WHEREAS, Maryland’s iconic seafood industry has contributed greatly to 4
Maryland’s economy and stature as a wonderful tourist destination and a great place to 5
live; and 6
WHEREAS, Maryland watermen have historically had a difficult time accessing 7
affordable commercial capital and credit; and 8
WHEREAS, Maryland’s generational watermen have faced many challenges in 9
recent years and were especially hard–hit during the COVID–19 pandemic due to loss of 10
markets; now, therefore, 11
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 12
That Section(s) 10–526 and 10–527, respectively, of Article – Economic Development of the 13
Annotated Code of Maryland be renumbered to be Section(s) 10 –527 and 10–528, 14
respectively. 15
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 16
as follows: 17
Article – Economic Development 18
10–526. 19
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE M EANINGS 20
INDICATED. 21
(2) “BEGINNER WATERMAN ” MEANS AN INDIVIDUAL WHO HAS: 22
(I) A TIDAL FISH LICENSE UNDER § 4–701 OF THE NATURAL 23
RESOURCES ARTICLE; AND 24
(II) AT LEAST 2 YEARS AND NOT MORE T HAN 10 YEARS OF 25
EXPERIENCE IN COMMER CIAL SEAFOOD HARVESTING . 26
(3) “GENERATIONAL WATERMAN ” MEANS AN INDIVIDUAL WHO: 27
(I) HAS A TIDAL FISH LIC ENSE UNDER § 4–701 OF THE 28
NATURAL RESOURCES ARTICLE; AND 29
(II) CAN DEMONSTRATE , THROUGH THE SUBMISSI ON OF THE 30
TWO MOST RECENT FEDE RAL INCOME TAX RET URNS AND OTHER SUPPO RTING 31 SENATE BILL 826 3
DOCUMENTS , THAT AT LEAST 50% OF THE INDIVIDUAL ’S ANNUAL INCOME IS 1
DERIVED FROM COMMERC IAL SEAFOOD HARVESTI NG. 2
(4) “PROGRAM” MEANS THE MARYLAND WATERMEN’S MICROLOAN 3
PROGRAM. 4
(5) “QUALIFIED COMMERCIAL FISHERMAN” INCLUDES: 5
(I) A BEGINNER WATERMAN ; AND 6
(II) A GENERATIONAL WATER MAN. 7
(B) THERE IS A MARYLAND WATERMEN’S MICROLOAN PROGRAM IN THE 8
CORPORATION . 9
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE LOANS TO QUALIFIED 10
COMMERCIAL FISHERMEN TO CONTINUE COMMERCI AL OPERATIO NS IN THE STATE, 11
INCLUDING FOR PURCHA SING: 12
(1) BOATS; 13
(2) MECHANICAL EQUIPMENT ; 14
(3) FISHING GEAR; 15
(4) FISHING QUOTA ; AND 16
(5) ANY OTHER ITEM USED IN COMMERCIAL SEAFOO D HARVESTING . 17
(D) THE CORPORATION SHALL IMP LEMENT AND ADMINISTE R THE 18
PROGRAM IN ACCORDANCE WITH THIS SECTION . 19
(E) (1) THROUGH JUNE 30, 2025, ONLY GENERATIONAL WA TERMEN ARE 20
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM. 21
(2) STARTING JULY 1, 2025, THE FOLLOWING PERSON S ARE 22
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM: 23
(I) GENERATIONAL WATERME N; 24
(II) BEGINNER WATERMEN ; AND 25
(III) SEAFOOD PROCESSING B USINESSES. 26
4 SENATE BILL 826
(F) (1) FOR LOANS MADE UNDER THE PROGRAM, THE CORPORATION 1
SHALL DETERMINE : 2
(I) THE ELIGIBILITY OF A N APPLICANT; 3
(II) THE AMOUNT OF LOAN T O BE GIVEN TO A BORROWER ; 4
(III) THE TERMS AND CONDIT IONS OF A LOAN CONTR ACT; AND 5
(IV) THE AMOUNT OF DEBT F ORGIVENESS THAT MAY BE 6
PROVIDED TO A BORROW ER FOR LOAN REPAYMEN T PERFORMANCE . 7
(2) A LOAN MADE UNDER THE PROGRAM SHALL BE AT L EAST $7,000 8
AND NOT MORE THAN $15,000. 9
(3) A BORROWER UNDER THE PROGRAM MAY NOT HAVE MORE THAN 10
ONE OUTSTANDING LOAN FROM THE PROGRAM DURING ANY PE RIOD OF TIME. 11
(G) (1) FOR FISCAL YEARS 2024 AND 2025, THE GOVERNOR SHALL 12
INCLUDE IN THE ANNUA L STATE BUDGET BILL AN APPROPRIATION OF $750,000 TO 13
THE PROGRAM. 14
(2) THE APPROPRIATION IN PARAGRAPH (1) OF THIS SUBSECTION 15
SHALL BE DISTRIBUTED TO A SPECIAL FUND , TO BE USED ONLY TO : 16
(I) MAKE LOANS UNDER THE PROGRAM; AND 17
(II) PAY THE COSTS NECESS ARY TO ADMINISTER AN D OPERATE 18
THE PROGRAM. 19
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 20
October 1, 2022. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
President of the Senate.
________________________________________________________________________________
Speaker of the House of Delegates.