EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXIS TING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0433*
SENATE BILL 433
C8, M2 3lr2077
By: Senator Klausmeier
Introduced and read first time: February 2, 2023
Assigned to: Finance and Budget and Taxation
A BILL ENTITLED
AN ACT concerning 1
Economic Development – Woman– and Minority–Owned Shellfish Aquaculture 2
Enterprise Fund 3
FOR the purpose of establishing the Woman– and Minority–Owned Shellfish Aquaculture 4
Enterprise Fund as a special, nonlapsing fund to assist woman– and minority–owned 5
businesses entering into or expanding in the shellfish aquaculture industry; 6
requiring the Maryland Agricultural and Resource–Based Industry Development 7
Corporation to develop partnerships with certain entities to facilitate the award of 8
loans from the Fund and identify potential loan recipients; requiring interest 9
earnings of the Fund to be credited to the Fund; and generally relating to the 10
Woman– and Minority–Owned Shellfish Aquaculture Enterprise Fund. 11
BY adding to 12
Article – Economic Development 13
Section 10–526.1 14
Annotated Code of Maryland 15
(2018 Replacement Volume and 2022 Supplement) 16
BY repealing and reenacting, without amendments, 17
Article – State Finance and Procurement 18
Section 6–226(a)(2)(i) 19
Annotated Code of Maryland 20
(2021 Replacement Volume and 2022 Supplement) 21
BY repealing and reenacting, with amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(ii)170. and 171. 24
Annotated Code of Maryland 25
(2021 Replacement Volume and 2022 Supplement) 26
BY adding to 27 2 SENATE BILL 433
Article – State Finance and Procurement 1
Section 6–226(a)(2)(ii)172. 2
Annotated Code of Maryland 3
(2021 Replacement Volume and 2022 Supplement) 4
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 5
That the Laws of Maryland read as follows: 6
Article – Economic Development 7
10–526.1. 8
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 9
INDICATED. 10
(2) “FUND” MEANS THE WOMAN– AND MINORITY–OWNED 11
SHELLFISH AQUACULTURE ENTERPRISE FUND. 12
(3) “SHELLFISH AQUACULTURE ENTERPRISE PROJECT ” MEANS A 13
PROJECT TO ESTABLISH OR EXPAND A SHELLFISH AQUACULT URE BUSINESS THAT 14
MEETS THE CRITERIA ESTABLI SHED BY THE CORPORATION . 15
(B) THERE IS A WOMAN– AND MINORITY–OWNED SHELLFISH 16
AQUACULTURE ENTERPRISE FUND. 17
(C) THE PURPOSE OF THE FUND IS TO ASSIST WOMAN – AND 18
MINORITY–OWNED BUSINESSES ENTERING INTO OR EXPANDING IN THE SHELLFISH 19
AQUACULTURE INDUSTRY . 20
(D) THE CORPORATION SHALL ADMINISTER THE FUND. 21
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 22
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 23
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 24
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 25
(F) THE FUND CONSISTS OF : 26
(1) MONEY APPROPRIATED I N THE STATE BUDGET TO THE FUND; 27
(2) INTEREST EARNINGS ; AND 28
SENATE BILL 433 3
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 1
THE BENEFIT OF THE FUND. 2
(G) (1) THE FUND MAY BE USED ONLY FOR: 3
(I) PROVIDING NO –INTEREST LOANS NOT E XCEEDING $50,000 4
EACH TO FINANCE THE COSTS OF ELIGIBLE SH ELLFISH AQUACULTURE ENTERPRISE 5
PROJECTS FOR WOMAN – AND MINORITY–OWNED BUSINESSES IN ACCORDANCE WITH 6
THIS SECTION, INCLUDING: 7
1. AQUACULTURE LEASE AP PLICATION ASS ISTANCE; 8
2. ASSISTANCE WITH THE OPERATING OR CAPITAL 9
EXPENSES OF THE AQUA CULTURE BUSINESS ; AND 10
3. TRAINING TO SUPPORT PARTICIPATION IN THE 11
AQUACULTURE INDUSTRY ; AND 12
(II) ADMINISTRATIVE EXPEN SES RELATED TO THE FUND. 13
(2) A BUSINESS IS ELIGIBLE TO RECEI VE FINANCING FROM TH E FUND 14
IF THE BUSINESS: 15
(I) IS OWNED BY A WOMAN OR MINORIT Y WHO HAS A TOTAL 16
PERSONAL NET WORTH N OT EXCEEDING $1,700,000; 17
(II) DEMONSTRATES TO THE SATISFACTION OF THE 18
CORPORATION THROUGH A BUSINESS PLAN OR FIN ANCIAL PROJECTIONS T HAT, 19
WITHIN 5 YEARS AFTER RECEIVIN G FINANCING FROM THE FUND, THE SHELLFISH 20
AQUACULTURE PORTION OF THE BUSINESS WILL HAVE T HE POTENTIAL TO ACHIEVE 21
VIABILITY; 22
(III) AGREES TO THE FINANCING TERM S AND CONDITIONS 23
ESTABLISHED BY THE CORPORATION ; AND 24
(IV) MEETS ANY OTHER ELIGIBILITY REQUIREM ENTS 25
ESTABLISHED BY THE CORPORATION . 26
(3) TO FACILITATE THE AWA RD OF LOANS FROM THE FUND AND 27
IDENTIFY POTENTIAL L OAN RECIPIENTS , THE CORPORATION SHALL DEVELOP 28
PARTNERSHIPS WITH : 29
4 SENATE BILL 433
(I) TRADITIONAL MINORITY –SERVING INSTITUTION S IN THE 1
STATE AND SURROUNDING JURISDICTIONS, INCLUDING HISTORICALLY BLACK 2
COLLEGES AND UNIVERSITIES; 3
(II) TRADE ASSOCIATIONS RE PRESENTING WOMAN– AND 4
MINORITY–OWNED BUSINESSES ; 5
(III) TRADE ASSOCIATIONS RE PRESENTING THE AQUAC ULTURE 6
INDUSTRY; AND 7
(IV) THE GOVERNOR’S OFFICE OF SMALL, MINORITY, AND 8
WOMEN BUSINESS AFFAIRS. 9
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 10
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE INVESTED . 11
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 12
THE FUND. 13
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 14
WITH THE STATE BUDGET . 15
(J) FOR FISCAL YEAR 2025, THE GOVERNOR SHALL INCLUD E IN THE 16
ANNUAL BUDGET BILL AN APPROPRIATION OF $1,000,000 TO THE FUND. 17
Article – State Finance and Procurement 18
6–226. 19
(a) (2) (i) Notwithstanding any other provision of law, and unless 20
inconsistent with a federal law, grant agreement, or other federal requirement or with the 21
terms of a gift or settlement agreement, net interest on all State money allocated by the 22
State Treasurer under this section to special funds or accounts, and otherwise entitled to 23
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 24
Fund of the State. 25
(ii) The provisions of subparagraph (i) of this paragraph do not apply 26
to the following funds: 27
170. the Cannabis Public Health Fund; [and] 28
171. the Community Reinvestment and Repair Fund; AND 29
SENATE BILL 433 5
172. THE WOMAN– AND MINORITY–OWNED SHELLFISH 1
AQUACULTURE ENTERPRISE FUND. 2
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 3
October 1, 2023. 4