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.
Italics indicate opposite chamber/conference committee amendments.
*sb0826*
SENATE BILL 826
C8 (2lr2541)
ENROLLED BILL
— Finance/Environment and Transportation and Ways and Means —
Introduced by Senators Klausmeier, Bailey, Carozza, Eckardt, Jackson, and West
West, Hershey, Jennings, and Salling
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
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 2 SENATE BILL 826
(2018 Replacement Volume and 2021 Supplement) 1
BY adding to 2
Article – Economic Development 3
Section 10–526 4
Annotated Code of Maryland 5
(2018 Replacement Volume and 2021 Supplement) 6
Preamble 7
WHEREAS, For generations Maryland watermen have labored to harvest delicious 8
fish and shellfish products from the Chesapeake Bay for the benefit of consumers in this 9
State and beyond; and 10
WHEREAS, Maryland’s iconic seafood industry has contrib uted greatly to 11
Maryland’s economy and stature as a wonderful tourist destination and a great place to 12
live; and 13
WHEREAS, Maryland watermen have historically had a difficult time accessing 14
affordable commercial capital and credit; and 15
WHEREAS, Maryland ’s generational watermen have faced many challenges in 16
recent years and were especially hard–hit during the COVID–19 pandemic due to loss of 17
markets; now, therefore, 18
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 19
That Section(s) 10–526 and 10–527, respectively, of Article – Economic Development of the 20
Annotated Code of Maryland be renumbered to be Section(s) 10 –527 and 10–528, 21
respectively. 22
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 23
as follows: 24
Article – Economic Development 25
10–526. 26
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 27
INDICATED. 28
(2) “BEGINNER WATERMAN ” MEANS AN INDIVIDUAL WHO HAS: 29
(I) A TIDAL FISH LICENSE UNDER § 4–701 OF THE NATURAL 30
RESOURCES ARTICLE; AND 31
SENATE BILL 826 3
(II) AT LEAST 2 YEARS AND NOT MORE T HAN 10 YEARS OF 1
EXPERIENCE IN COMMER CIAL SEAFOOD HARVEST ING. 2
(3) “GENERATIONAL WATERMAN ” MEANS AN INDIVIDUAL WHO: 3
(I) HAS A TIDAL FISH LIC ENSE UNDER § 4–701 OF THE 4
NATURAL RESOURCES ARTICLE; AND 5
(II) CAN DEMONSTRATE , THROUGH THE SUBMISSION OF TH E 6
TWO MOST RECENT FEDE RAL INCOME TAX RETUR NS AND OTHER SUPPORT ING 7
DOCUMENTS , THAT AT LEAST 50% OF THE INDIVIDUAL ’S ANNUAL INCOME IS 8
DERIVED FROM COMMERC IAL SEAFOOD HARVESTI NG. 9
(4) “PROGRAM” MEANS THE MARYLAND WATERMEN’S MICROLOAN 10
PROGRAM. 11
(5) “QUALIFIED COMMERCIAL FISHERMAN” INCLUDES: 12
(I) A BEGINNER WATERMAN ; AND 13
(II) A GENERATIONAL WATER MAN. 14
(B) THERE IS A MARYLAND WATERMEN’S MICROLOAN PROGRAM IN THE 15
CORPORATION . 16
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE LOANS TO QU ALIFIED 17
COMMERCIAL FISHERMEN TO CONTINUE COMMERCI AL OPERATIONS IN THE STATE, 18
INCLUDING FOR PURCHA SING: 19
(1) BOATS; 20
(2) MECHANICAL EQUIPMENT ; 21
(3) FISHING GEAR; 22
(4) FISHING QUOTA ; AND 23
(5) ANY OTHER ITEM USED IN COMMERCIAL SEAFOO D HARVESTING . 24
(D) THE CORPORATION SHALL IMP LEMENT AND ADMINISTE R THE 25
PROGRAM IN ACCORDANCE WITH THIS SECTION . 26
(E) (1) THROUGH JUNE 30, 2025, ONLY GENERATIONAL WA TERMEN ARE 27
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM. 28 4 SENATE BILL 826
(2) STARTING JULY 1, 2025, THE FOLLOWING PERSON S ARE 1
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM: 2
(I) GENERATIONAL WATERME N; 3
(II) BEGINNER WATERMEN ; AND 4
(III) SEAFOOD PROCESSING B USINESSES. 5
(F) (1) FOR LOANS MADE UNDER THE PROGRAM, THE CORPORATION 6
SHALL DETERMINE : 7
(I) THE ELIGIBILITY OF AN APPLICANT ; 8
(II) THE AMOUNT OF LOAN T O BE GIVEN TO A BORR OWER; 9
(III) THE TERMS AND CONDIT IONS OF A LOAN CONTR ACT; AND 10
(IV) THE AMOUNT OF DEBT F ORGIVENESS THAT MAY BE 11
PROVIDED TO A BORROW ER FOR LOAN REPAYMEN T PERFORMANCE . 12
(2) A LOAN MADE UNDER THE PROGRAM SHALL BE AT L EAST $7,000 13
AND NOT MORE THAN $15,000. 14
(3) A BORROWER UNDER THE PROGRAM MAY NOT HAVE MORE THAN 15
ONE OUTSTANDING LOAN FROM THE PROGRAM DURING ANY PE RIOD OF TIME. 16
(G) (1) FOR EACH OF FISCAL YEARS 2024 AND 2025 THROUGH 2026, THE 17
GOVERNOR SHALL INCLUD E IN THE ANNUAL STATE BUDGET BILL AN 18
APPROPRIATION OF $750,000 $500,000 TO THE PROGRAM. 19
(2) THE APPROPRIATION IN PARAGRAPH (1) OF THIS SUBSECTION 20
SHALL BE DISTRIBUTED TO A SPECIAL FUND , TO BE USED ONLY TO : 21
(I) MAKE LOANS UNDER THE PROGRAM; AND 22
(II) PAY THE COSTS NECESS ARY TO ADMINISTER AN D OPERATE 23
THE PROGRAM. 24
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect 25
October 1, 2022. 26