WES MOORE, Governor Ch. 574
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Chapter 574
(House Bill 120)
AN ACT concerning
Economic Development – Maryland Watermen’s Microloan Program – Eligibility
Economic Development – Maryland Agricultural and Resource–Based Industry
Development Corporation – Loans
FOR the purpose of altering a certain loan program to authorize the Maryland Agricultural
and Resource–Based Industry Development Corporation to provide loans in a certain
amount for certain seasonal full–time jobs; requiring a recipient of a certain loan to
make a certain annual report to the Corporation; expanding eligibility for the
Maryland Watermen’s Microloan Program within the Maryland Agricultural and
Resource–Based Industry Development Corporation to include, on or after a certain
date, individuals who are residents of the State and hold certain commercial fishing
licenses issued by the Potomac River Fisheries Commission; repealing a certain
requirement relating to the amount of a loan under the Program; and generally
relating to the Maryland Watermen’s Microloan Program.
BY repealing and reenacting, with amendments,
Article – Economic Development
Section 10–519.1(a) and (b) and 10–526
Annotated Code of Maryland
(2018 Replacement Volume and 2023 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
Article – Economic Development
10–519.1.
(a) (1) In this section the following words have the meanings indicated.
(2) “Eligible seafood processing project” means a project to establish or
expand the business of a licensed seafood dealer that:
(i) supports the goal of increasing the amount of oyster shells
retained in the State and returned to the Chesapeake Bay; and
(ii) meets the criteria established by the Corporation under this
section.
Ch. 574 2024 LAWS OF MARYLAND
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(3) “Licensed seafood dealer” means a person licensed under § 4–701 of the
Natural Resources Article to buy, process, pack, resell, market or otherwise deal in fish
caught in the tidal waters of the State.
(4) “Repletion” means enhancing areas where commercial harvest is
permitted.
(5) “SEASONAL FULL –TIME JOB” MEANS A POSITION FOR WHICH AN
INDIVIDUAL IS REQUIR ED TO WORK A MINIMUM OF 420 HOURS DURING 12 WEEKS OF
A 3–MONTH PERIOD .
(b) (1) (I) The Corporation shall provide loans up to $250,000 to finance the
costs of eligible seafood processing projects in accordance with this section, including historic
oyster shucking facilities, not to exceed $25,000 for each full–time job OR $10,000 FOR
EACH SEASONAL FULL –TIME JOB that is projected to be created or retained.
(II) BEGINNING 1 YEAR AFTER RECEIPT O F A LOAN UNDER THIS
SECTION, A LOAN RECIPIENT SHA LL REPORT EACH YEAR FOR 3 CONSECUTIVE YEARS
TO THE CORPORATION TO CERTIF Y THE NUMBER OF FULL –TIME JOBS AND
SEASONAL FULL –TIME JOBS THAT WERE CREATED OR RETAINED BY THE RECIPIENT
DURING THE PREVIOUS 12–MONTH PERIO D.
(2) Financing provided under this section shall be conditioned on the
agreement by the recipient to comply with the provisions of § 4–1019.2 of the Natural
Resources Article until the loan is repaid.
(3) The Corporation shall forgive any loan provided under this section as
follows:
(i) the current market value as established in § 4–1019.2 of the
Natural Resources Article for each bushel of oyster shells that the loan recipient returns to
the Department of Natural Resources at no cost; or
(ii) $25 for each bushel of spat–on–shell that the person plants on a
public fishery bottom as verified by the Department of Natural Resources.
10–526.
(a) (1) In this section the following words have the meanings indicated.
(2) “Beginner waterman” means an individual who has:
(i) IS A RESIDENT OF THE STATE;
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(II) 1. HOLDS a tidal fish license under § 4–701 of the Natural
Resources Article; OR
2. HOLDS A COMMERCIAL L ICENSE TO CATCH FINF ISH,
CRABS, CLAMS, AND OYSTERS , ISSUED BY THE POTOMAC RIVER FISHERIES
COMMISSION IN ACCORDA NCE WITH § 4–306 OF THE NATURAL RESOURCES
ARTICLE; and
(ii) (III) HAS at least 2 years and not more than 10 years of
experience in commercial seafood harvesting.
(3) “Generational waterman” means an individual who:
(i) has IS A RESIDENT OF THE STATE;
(II) 1. HOLDS a tidal fish license under § 4–701 of the Natural
Resources Article; OR
2. HOLDS A COMMERCIAL L ICENSE TO CATCH FINF ISH,
CRABS, CLAMS, AND OYSTERS , ISSUED BY THE POTOMAC RIVER FISHERIES
COMMISSION IN ACCORDA NCE WITH § 4–306 OF THE NATURAL RESOURCES
ARTICLE; and
(ii) (III) can demonstrate, through the submission of the two most
recent federal income tax returns and other supporting documents, that at least 50% of the
individual’s annual income is derived from commercial seafood harvesting.
(4) “Program” means the Maryland Watermen’s Microloan Program.
(5) “Qualified commercial fisherman” includes:
(i) a beginner waterman; [and]
(ii) a generational waterman; AND
(III) AN INDIVIDUAL WHO IS A RESIDENT OF THE STATE AND
HOLDS A COMMERCIAL L ICENSE TO CATCH FINF ISH, CRABS, CLAMS, OR OYSTERS
ISSUED BY THE POTOMAC RIVER FISHERIES COMMISSION IN ACCORDA NCE WITH §
4–306 OF THE NATURAL RESOURCES ARTICLE.
(b) There is a Maryland Watermen’s Microloan Program in the Corporation.
(c) The purpose of the Program is to provide loans to qualified commercial
fishermen to continue commercial operations in the State, including for purchasing:
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(1) boats;
(2) mechanical equipment;
(3) fishing gear;
(4) fishing quota; and
(5) any other item used in commercial seafood harvesting.
(d) The Corporation shall implement and administer the Program in accordance
with this section.
(e) (1) Through June 30, 2025, only generational watermen are eligible to
receive a loan under the Program.
(2) Starting July 1, 2025, the following persons are eligible to receive a loan
under the Program:
(i) generational watermen;
(ii) beginner watermen; [and]
(iii) seafood processing businesses; AND
(IV) INDIVIDUALS WHO ARE RESIDENTS OF THE STATE AND
HOLD A COMMERCIAL LI CENSE TO CATCH FINFI SH, CRABS, CLAMS, OR OYSTERS
ISSUED BY THE POTOMAC RIVER FISHERIES COMMISSION IN ACCORDA NCE WITH §
4–306 OF THE NATURAL RESOURCES ARTICLE.
(f) (1) For loans made under the Program, the Corporation shall determine:
(i) the eligibility of an applicant;
(ii) the amount of loan to be given to a borrower;
(iii) the terms and conditions of a loan contract; and
(iv) the amount of debt forgiveness that may be provided to a
borrower for loan repayment performance.
(2) A loan made under the Program shall be at least $7,000 and not more
than $15,000.
(3) A borrower under the Program may not have more than one
outstanding loan from the Program during any period of time. WES MOORE, Governor Ch. 574
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(g) (1) For each of fiscal years 2024 through 2026, the Governor shall include
in the annual State budget bill an appropriation of $500,000 to the Program.
(2) The appropriation in paragraph (1) of this subsection shall be
distributed to a special fund, to be used only to:
(i) make loans under the Program; and
(ii) pay the costs necessary to administer and operate the Program.
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect
October July 1, 2024.
Approved by the Governor, May 9, 2024.