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*sb0558*
SENATE BILL 558
M1, M2 (6lr1971)
ENROLLED BILL
— Budget and Taxation/Environment and Transportation —
Introduced by Senator Bailey Senators Bailey, Augustine, Corderman, Guzzone,
Hettleman, Jennings, King, Lewis Young, McCray, Rosapepe, Salling, and
Zucker
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
Chesapeake Bay Enhancement Program – Established 2
Chesapeake Bay – Enhancement Program and Maryland Seafood Industry 3
Financial Assistance Fund – Established 4
FOR the purpose of establishing the Chesapeake Bay Enhancement Program to provide 5
funding for certain oyster propagation and replenishment projects that mitigate the 6
effects on the State’s oyster population of certain transportation projects on the 7
State’s oyster population ; establishing the Maryland Seafood Industry Financial 8
Assistance Fund to provide financial assistance to certain commercial watermen and 9
small businesses; prohibiting the Department of Natural Resources from making 10
certain approvals for tidal fish licenses or authorizations of certain borrowers; and 11
generally relating to the Chesapeake Bay Enhancement Program and Maryland 12
Seafood Industry Financial Assistance Fund. 13
2 SENATE BILL 558
BY adding to 1
Article – Natural Resources 2
Section 4–1020.1 3
Annotated Code of Maryland 4
(2023 Replacement Volume and 2025 Supplement) 5
BY adding to 6
Article – Economic Development 7
Section 10–526.1 and 10–526.2 8
Annotated Code of Maryland 9
(2024 Replacement Volume and 2025 Supplement) 10
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 11
That the Laws of Maryland read as follows: 12
Article – Natural Resources 13
4–1020.1. 14
(A) IN THIS SECTION , “PROGRAM” MEANS THE CHESAPEAKE BAY 15
ENHANCEMENT PROGRAM. 16
(B) THERE IS A CHESAPEAKE BAY ENHANCEMENT PROGRAM IN THE 17
DEPARTMENT. 18
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE FUNDING FOR OYSTER 19
PROPAGATION AND REPLENISHMENT PROJECTS THAT MITIGATE THE EFF ECTS ON 20
THE STATE’S OYSTER POPULATION OF TRANSPORTATION PR OJECTS THAT 21
MAINTAIN OR EXPAND T HE HELEN DELICH BENTLEY PORT OF BALTIMORE, 22
INCLUDING: 23
(1) DREDGING; 24
(2) THE CONSTRUCTION OR MAINTENANCE OF: 25
(I) PIERS; 26
(II) BRIDGES; OR 27
(III) SHIPPING CHANNELS; AND 28
(3) CONSTRUCTION AT THE HELEN DELICH BENTLEY PORT OF 29
BALTIMORE OF TRANSPORTATION PR OJECTS ON THE STATE’S OYST ER 30
POPULATION. 31
SENATE BILL 558 3
(D) FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER, THE 1
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDG ET BILL AN APPROPRIATION OF 2
$2,000,000 $2,250,000 TO THE PROGRAM FROM THE TRANSPORTATION TRUST 3
FUND UNDER § 3–216 OF THE TRANSPORTATION ARTICLE. 4
(E) (1) THE DEPARTMENT SHALL ADMI NISTER THE FUNDS 5
APPROPRIATED UNDER SUBSECTION (D) OF THIS SECTION. 6
(2) THE DEPARTMENT SHALL ALLOCATE THE FUNDS APPROPRIATED 7
UNDER SUBSECTION (D) OF THIS SECTION USE FUNDING UNDER THE PROGRAM TO 8
SUPPORT OYSTER PROPA GATION AND REPLENISH MENT AND PROGRAM 9
MANAGEMENT. 10
(3) NOTWITHSTANDING PARAGRAPH (2) OF THIS SUBSECTION , THE 11
DEPARTMENT SHALL ALLO CATE AT LEAST $1,500,000 OF THE FUNDS 12
APPROPRIATED UNDER S UBSECTION (D) OF THIS SECTION FOR OYSTER 13
PROPAGATION AND REPLENISHMENT PROJECTS. 14
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 15
as follows: 16
Article – Economic Development 17
10–526.1. 18
(A) IN THIS SECTION, “FUND” MEANS THE MARYLAND SEAFOOD INDUSTRY 19
FINANCIAL ASSISTANCE FUND. 20
(B) THERE IS A MARYLAND SEAFOOD INDUSTRY FINANCIAL ASSISTANCE 21
FUND. 22
(C) THE PURPOSE OF THE FUND IS TO PROVIDE FI NANCIAL ASSISTANCE, 23
INCLUDING LOANS, TO COMMERCIAL WATERM EN AND SMALL BUSINESSES IN THE 24
SEAFOOD INDUSTRY. 25
(D) THE CORPORATION SHALL ADMINISTER THE FUND. 26
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 27
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 28
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 29
AND THE COMPTROLLER SHALL ACCOUNT FOR THE FUND. 30
4 SENATE BILL 558
(F) THE FUND CONSISTS OF: 1
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 2
(2) FEES AND LOAN REPAYM ENTS, INCLUDING INTEREST , LOAN 3
PRINCIPAL REPAYMENTS RELATED TO THE FINANCIAL ASSISTANCE UNDER THIS 4
SECTION; 5
(3) MONEY MADE AVAILABLE FROM THE FEDERAL, STATE, OR LOCAL 6
GOVERNMENT; AND 7
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 8
THE BENEFIT OF THE FUND. 9
(G) (F) THE FUND MAY BE USED ONLY FOR: 10
(1) FINANCIAL ASSISTANCE, INCLUDING LOANS; AND 11
(2) THE COSTS OF THE CORPORATION TO ADMINISTER THIS SECTION. 12
(H) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND IN 13
THE SAME MANNER AS OTHER STATE MONEY MAY BE INVESTED. 14
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY I N ACCORDANCE 15
WITH THE STATE BUDGET. 16
(J) (G) FOR FINANCIAL ASSISTA NCE, INCLUDING LOANS , PROVIDED 17
UNDER THIS SECTION, THE CORPORATION SHALL DETERMINE THE FOLLOWING: 18
(1) THE APPLICATION AND AWARD PROCESS; 19
(2) ELIGIBILITY CRITERIA; 20
(3) THE AMOUNT OF THE FINANCIAL ASSISTANCE, INCLUDING LOANS, 21
FOR EACH APPLICANT; 22
(4) THE TERMS AND CONDIT IONS OF FINANCIAL AS SISTANCE, 23
INCLUDING LOANS; 24
(5) THE AMOUNT OF LOAN F ORGIVENESS THAT THE CORPORATION 25
MAY PROVIDE FOR LOAN REPAYMENT PERFORMANCE; AND 26
SENATE BILL 558 5
(6) ANY OTHER PROVISIONS NECESSARY TO CARRY O UT THIS 1
SECTION. 2
10–526.2. 3
(A) (1) IF A BORROWER WHO HOL DS A TIDAL FISH LICE NSE UNDER § 4
4–701 OF THE NATURAL RESOURCES ARTICLE IS DELINQUENT IN THE REPAYMENT 5
OF A LOAN UNDER THIS SUBTITLE, THE CORPORATION SHALL NOT IFY THE 6
DEPARTMENT OF NATURAL RESOURCES. 7
(2) IF A BORROWER UNDER P ARAGRAPH (1) OF THIS SUBSECTION 8
BECOMES COMPLIANT WI TH THE REPAYMENT OF A LOAN UNDER THIS SU BTITLE, 9
THE CORPORATION SHALL NOTIFY THE DEPARTMENT OF NATURAL RESOURCES. 10
(B) NOTWITHSTANDING § 4–701 OF THE NATURAL RESOURCES ARTICLE, 11
AFTER RECEIVING A NO TIFICATION UNDER SUB SECTION (A)(1) OF THIS SECTION 12
AND UNTIL RECEIVING A NOTIFICATION UNDER SUBSECTION (A)(2) OF THIS 13
SECTION, THE DEPARTMENT OF NATURAL RESOURCES MAY NOT APPROVE A 14
TRANSFER OF THE TIDAL FISH LICENSE OR AUTHORIZATION. 15
SECTION 3. AND BE IT FURTHER ENACTED, That: 16
(1) the Maryland Agricultural and Resource –Based Industry Development 17
Corporation may transfer up to $337,500 each from the Oyster Shucking House Loan 18
Program and the Watermen’s Microloan Program to the Maryland Seafood Industry 19
Financial Assistance Fund established under Section 2 of this Act to provide additional 20
financial assistance to commercial watermen and small businesses in the seafood industry; 21
and 22
(2) the Maryland Agricultural and Resource –Based Industry Development 23
Corporation shall repay any funds transferred from the Oyster Shucking House Loan 24
Program or the Watermen’s Microloan Program to the Maryland Seafood Industry 25
Financial Assistance Fund established under Section 2 of this Act on or before June 30, 26
2028. 27
SECTION 3. 4. AND BE IT FURTHER ENACTED, That Section 2 Sections 2 and 3 28
of this Act shall take effect July 1, 2026. 29
SECTION 2. 4. 5. AND BE IT FURTHER ENACTED, That , except as provided in 30
Section 3 4 of this Act, this Act shall take effect October 1, 2026. 31