In this subtitle the following words have the meanings indicated. “Agricultural loan” means a loan made to a person by a lender to finance: land acquisition or improvement; agricultural, aquacultural, equine, horticultural, or silvicultural production; soil conservation; pond construction; irrigation; water well drilling; improvement of a structure or facility; purchase of a farm fixture, livestock, or poultry; fish, crustaceans, or mollusks of any kind; seeds, plants, or trees; fertilizer; pesticide; feed; equipment; or containers or supplies employed in the production, cultivation, harvesting, processing, storage, marketing, distribution, or export of an agricultural product. “Agriculture” means the commercial production, storage, processing, marketing, distribution, or export of an agronomic, aquacultural, equine, floricultural, horticultural, ornamental, silvicultural, or viticultural crop, including: a farm product; livestock or a livestock product; poultry or a poultry product; milk or a dairy product; timber or a forest product; fruit or a horticultural product; and seafood or an aquacultural product. “Board” means the Board of Directors of the Corporation. “Bond” means a bond of the Corporation issued under this subtitle. “Bond” includes: a renewal note; a refunding bond; an interim certificate; a certificate of indebtedness; a debenture; a warrant; commercial paper; and any other obligation. “Corporation” means the Maryland Agricultural and Resource-Based Industry Development Corporation. “Finance” includes refinance. “Improve” means to add, alter, construct, equip, expand, extend, reconstruct, rehabilitate, remodel, or repair. “Improvement” means addition, alteration, construction, equipping, expansion, extension, reconstruction, rehabilitation, remodeling, or repair. “Lender” means a financial institution authorized to do business in the State or operating under the supervision of a federal unit. “Lender” includes: a bank; a trust company; a federal land bank; a farm credit association; a bank for cooperatives; insurance company; investment banker; mortgage banker or company; pension or retirement fund; savings and loan association; small business investment company; or credit union. “Person” has the meaning stated in § 9-101 of this article. “Person” also includes a unit of a state or of the federal government. “Project” means any property, the acquisition or improvement of which the Board, in its sole discretion, determines by resolution will accomplish at least one of the purposes listed in § 10-502 of this subtitle, whether or not the property, or any interest in the property: is or will be used or operated for profit or not for profit; is or will be located on one or more sites; or may be financed by bonds, the interest on which is exempt from taxation under federal law. “Project” includes: property and rights related to the property, appurtenances, rights-of-way, franchises, easements, and other interests in property; structures, equipment, furnishings, rail or motor vehicles, barges, and boats; property that is functionally related and subordinate to a project; and patents, licenses, and other rights necessary or useful in the improvement or operation of a project. “Revenue” means the income, revenue, and other money received by the Corporation from or in connection with a project and all other income of the Corporation. “Revenue” includes grants, rentals, rates, fees, and charges for the use of the services furnished or available.

The General Assembly finds that: the State’s agricultural and resource-based industries continue to underpin the local economies of rural communities, but are increasingly under threat from national and international market competition, urban encroachment and land development pressure, and environmental and regulatory influences; the construction and renovation of food and fiber processing and secondary manufacturing facilities often require credit and capital in amounts that far exceed the available resources of individual small producers and small businesses; private enterprise and existing federal and State governmental programs have not adequately addressed agricultural industry support or developmental opportunities relating to emergent value-added agricultural processing activities, development of new or alternative markets, primary and secondary manufacturing, assistance for beginning farmers and producers, and financial support for environmental or technological enhancements; while some traditional agricultural enterprises in the State may have access to markets, capital, and credit, other existing or emerging segments of the agricultural industry lack market access, capital, and credit available for investment in agriculture, for domestic and export purposes, and at interest rates within the financial means of persons engaged in agricultural production and agricultural exports; in conjunction with the financial and other challenges associated with traditional agricultural industries, there is a need to provide economic and market development assistance to those individuals who wish to start, convert, or diversify their agricultural operations, or to make improvements associated with environmental regulations and potential market opportunities; and it is a matter of significant importance to rural economic development that the Corporation be created and authorized to: develop agricultural industries and markets; support appropriate commercialization of agricultural processes and technology; and alleviate the shortage of nontraditional capital and credit available at affordable interest rates for: investment in agriculture to promote and assist agriculture in the State; the sale of agricultural products, commodities, and services; and capital investment in agricultural projects by providing capital and credit within the financial means of persons engaged in agriculture in the State. The purpose of the Corporation is to: assist the viability of the State’s diverse agricultural industry through development of new markets, capital and credit enhancements, and technical and other assistance to support, create, and sustain agricultural businesses throughout the State; provide financing and other assistance for product development, start–up and scale–up of food–related and fiber–related growing and processing operations in the State, and for technological enhancements that benefit the environment and water quality; seek partnerships and leveraging opportunities with public and private for–profit and nonprofit entities in making capital and credit assistance available to individual producers, producer cooperatives, and other agribusiness concerns operating in the State; facilitate and support access to high quality technical resources for agricultural entrepreneurs by incorporating existing support infrastructure including the development of strategic partnering opportunities and business incubation; foster cross–industry communication and assist other organizations in transferring to the private sector and commercializing the results and products of scientific agricultural research and development conducted by the federal government and colleges and universities; and work with public and private lending and grant–making institutions to: make low–interest and no–interest loans and loan guarantees available for agricultural product development, primary processing, and secondary manufacturing; provide credit and capital to beginning farmers for land, equipment, and working capital acquisition; make incentives available for activities related to small farm or small landowner viability and best management practices; and make temporary land and easement purchases in accordance with State or local critical farm acquisition programs.

This subtitle shall be liberally construed to carry out its purposes.

There is a Maryland Agricultural and Resource-Based Industry Development Corporation. The Corporation is a body politic and corporate and is an instrumentality of the State.

There is a Board of Directors of the Corporation. The Board manages the Corporation and exercises all of its corporate powers. The Board consists of the following members: as ex officio members: the Secretary or a designee of the Secretary who is a senior-level departmental official; the Secretary of Agriculture or a designee of the Secretary who is a senior-level departmental official; the Secretary of Natural Resources or a designee of the Secretary who is a senior-level departmental official; the Executive Director of the Maryland Food Center Authority; the Executive Director of the Rural Maryland Council; and the Director of the Maryland Cooperative Extension Service; and eleven individuals appointed by the Governor with the advice and consent of the Senate as follows: two agricultural producers representing at least two different farm commodity industries in the State; two representatives from commercial lending institutions serving rural regions in the State, one of whom shall represent a major farm credit organization operating in the State; one representative of the timber and forest products industry; one representative of the aquaculture industry; one representative of the commercial seafood harvesting and processing industry; one individual with knowledge and experience in the area of operating commercial food or fiber processing facilities; one individual with knowledge and experience in the area of public finance; one individual with knowledge and experience in the area of rural economic development or agricultural marketing; and one individual with knowledge about the agricultural, forestry, or seafood industries or agritourism in the State or with substantial and relevant economic development experience. A member of the Board shall be a resident of the State. In appointing members of the Board under subsection (b)(2) of this section, the Governor shall consider all of the geographic regions of the State. The term of a member appointed under subsection (b)(2) of this section is 4 years. The terms of the appointed members are staggered as required by the terms provided for the members on October 1, 2008. At the end of a term, an appointed member continues to serve until a successor is appointed and qualifies. A member who is appointed after a term has begun serves only for the rest of the term and until a successor is appointed and qualifies. The Governor may remove a member of the Board for incompetence, misconduct, or failure to perform the duties of the position. The Board shall elect a chair from among its members. The Board may act with an affirmative vote of nine members. A member of the Board: serves without compensation as a member of the Board; but is entitled to reimbursement for expenses under the Standard State Travel Regulations as provided in the State budget.

The Corporation shall employ an Executive Director with experience and qualifications relevant to the activities and the purposes of the Corporation.

The Attorney General serves as legal advisor to the Corporation.

The Corporation is exempt from: Title 10 and Division II of the State Finance and Procurement Article; laws governing the State Personnel Management System under Division I of the State Personnel and Pensions Article; and §§ 19–205 and 19–206 of the Local Government Article (Conditions upon Sale of Public Securities). The Corporation is subject to: the Public Information Act; and subject to paragraph (2) of this subsection, the Open Meetings Act. For purposes of the Open Meetings Act, a project site visit or educational field tour may not be considered a meeting of the Corporation if no organizational business is conducted. The Board and employees of the Corporation are subject to the Public Ethics Law.

The Corporation may: adopt bylaws for the conduct of its business; adopt a seal; maintain an office at a place it designates in the State; accept loans, grants, or financial and technical assistance in any form from the federal or State government, local governments, colleges or universities, or a private source; enter into contracts and other legal instruments; sue or be sued; acquire, purchase, hold, lease as a lessee, and use any franchise, patent, or license and real, personal, mixed, or tangible or intangible property, or any interest in property; own, improve, sell, lease as a lessor, transfer, license, assign, encumber, and dispose of any property or interest in property, necessary or convenient to carry out its purposes at public sale, with or without public bidding; fix and collect rates, rentals, fees, royalties, and charges for the use of or for services and resources it provides or makes available; retain any necessary accountants, engineers, financial advisors, and other consultants; with the approval of the Attorney General, retain any necessary lawyers; further define or limit the term “revenue” defined in § 10-501 of this subtitle as the term applies to a particular project, financing, or other matter; create, own, control, or be a member of a corporation, limited liability company, partnership, or other person, whether operated for profit or not for profit; exercise a power usually possessed by a private corporation in performing similar functions unless to do so would conflict with State law; and do anything necessary or convenient to carry out the powers granted by this subtitle.

The Corporation may make grants to or provide equity investment financing for agricultural and resource-based businesses.

The Corporation may: acquire, improve, develop, manage, market, manufacture, license, maintain, lease as lessor or as lessee, and operate a project in the State to carry out the purposes of the Corporation; acquire, directly or indirectly, by purchase, gift, or devise, property, rights, rights-of-way, franchises, easements, and other interests in land, including land lying under water and riparian rights, located in or outside the State as necessary or convenient to improve or operate a project, on terms and at prices the Corporation considers reasonable; and enter into a project with a manufacturer to carry out the purposes of this subtitle.

The Corporation may: borrow money and issue bonds; purchase, discount, sell, negotiate and guarantee, insure, co–insure, and reinsure negotiable instruments, bills of exchange, acceptances, bankers’ acceptances, cable transfers, letters of credit, and other evidences of indebtedness; and provide for the rights of lenders and bondholders; procure insurance or reinsurance against: loss in connection with its property or operations, including insurance, reinsurance, or other guarantees from any federal or State unit or private insurance company for the payment of bonds issued by the Corporation, or bonds, notes, or any other obligations issued or made by any lender or other person; or loss with respect to agricultural loans, mortgages or mortgage loans, or any other type of loans, including the power to pay premiums on the insurance or reinsurance; insure, co–insure, or reinsure agricultural loans, mortgage loans or mortgages, or any other type of loans; pay or receive premiums on the insurance, co–insurance, or reinsurance; establish reserves for losses; and participate in the insurance, co–insurance, or reinsurance of agricultural loans, mortgage loans or mortgages, or any other type of loans with the federal or State government or any private insurance company; make loans to or deposits with lenders; purchase or sell agricultural loans; fix and collect fees and charges in connection with its loans, deposits, insurance commitments, and services, including reimbursement of costs of issuing bonds, origination and servicing fees, and insurance premiums; and subject to the rights of its bondholders: renegotiate, refinance, or foreclose on a mortgage, security interest, or lien; commence an action to protect or enforce any right or benefit conferred on the Corporation by any law or agreement; consent to modification of an interest rate, time, payment, security, or other term or condition of an agreement to which the Corporation is a party or beneficiary; bid for and purchase property at any foreclosure or at any other sale, or otherwise acquire or take possession of any property; and in connection with an acquisition under item (iv) of this item, complete, administer, pay the principal of and interest on any obligation incurred in connection with the property, dispose of, and otherwise deal with the property in any manner necessary or desirable to protect the interest of the Corporation or its bondholders in the property.

The Corporation may authorize the issuance of revenue bonds by resolution. The Corporation may issue the bonds: to finance all or part of the costs of a project; and for any other lawful purpose of the Corporation authorized in this subtitle. The Corporation may issue the bonds at one time or from time to time. The Corporation shall determine: the date of the bonds; the interest rates of the bonds; the maturity date of the bonds, which may not exceed 40 years from the date of issue; the prices, terms, and conditions of sale of the bonds; the form of the bonds; the manner of executing the bonds; the denominations of the bonds; and the places of payment of principal of and interest on the bonds, at a bank or trust company in or outside the State. An officer’s signature or facsimile signature on a bond remains valid even if the officer leaves office before the bond is delivered. The bonds are negotiable instruments under the laws of the State. Bonds may be registrable. The Corporation may sell the bonds by competitive or negotiated sale in a manner and for a price that the Corporation determines. The bonds are exempt from §§ 8-206 and 8-208 of the State Finance and Procurement Article. Bond proceeds may be placed in escrow pending application of the proceeds to the purposes for which the bonds are issued.

This section does not prevent the Corporation from pledging its full faith and credit to the payment of a bond. This section does not limit the ability of the State or a political subdivision to impose an assessment, rate, fee, or charge to pay to the Corporation any cost, including the principal of and interest on a bond, under an agreement between the Corporation and the State or political subdivision. A bond: is not a debt, liability, or a pledge of the full faith and credit of the State or of any political subdivision; and is payable solely from revenues provided under this subtitle. The issuance of a bond is not directly, indirectly, or contingently a moral or other obligation of the State or a political subdivision to levy or pledge any tax or to make an appropriation to pay the bond. Each bond shall state on its face that: neither the State nor a political subdivision, other than the Corporation, is obliged to pay the principal of or interest on the bond, except from revenues pledged to payment of the bond; and neither the full faith and credit nor the taxing power of the State or a political subdivision is pledged to the payment of the principal of or interest on the bond.

The Corporation may secure a bond by a trust agreement between the Corporation and a corporate trustee. A corporate trustee may be any trust company or bank that has the powers of a trust company in or outside the State. A corporation or trust company incorporated in the State may: act as depository of bond proceeds or revenue; and furnish any indemnity bond or pledge security that the Corporation requires. The trust agreement or the resolution that provides for the issuance of a bond may: state the rights and remedies of bondholders and any trustee; contain provisions to protect and enforce the rights and remedies of bondholders; contain covenants stating the duties of the Corporation as to the custody, safeguarding, and application of money; restrict the individual right of action of bondholders; provide for the payment of the bond proceeds and revenues to an officer, board, or depository that the Corporation determines with the safeguards and restrictions that the Corporation determines; and provide for the method of disbursement of the bond proceeds and revenues, with the safeguards and restrictions that the Corporation determines. Expenses incurred in carrying out a trust agreement may be treated as a part of the cost of operation of the Corporation.

The portion of the proceeds of bonds issued to pay costs of a project may be invested in investments or other obligations that mature no later than the times when the proceeds will be needed. Except as provided in paragraph (2) of this subsection, the Corporation shall determine the investment of bond proceeds. If the Corporation loans the proceeds of the bonds to a person as provided in § 10-519 of this subtitle, the loan recipient shall determine the investment of bond proceeds. The Corporation or the loan recipient may apply earnings and profits on investments or other obligations: to the payment of any cost; or in any other lawful manner.

The Corporation may issue bonds to refund any outstanding bonds, including paying: any redemption premium; interest accrued or to accrue to the date of redemption, purchase, or maturity of the bonds; and if considered advisable by the Corporation, any part of the cost of a project. Refunding bonds may be issued for any corporate purpose, including: realizing savings in the effective costs of debt service, directly or through a debt restructuring; alleviating an impending or actual default; or relieving the Corporation of a contractual agreement that the Corporation finds to be unreasonably onerous, impracticable, or impossible to perform. The Corporation may issue refunding bonds in one or more series in an amount greater than the amount of the bonds to be refunded. Refunding bonds may be made payable from: escrowed bond proceeds; earnings and profits, if any, on investments; or any other source. These sources: may be applied to other uses; and constitute revenues of a project under this subtitle. In the discretion of the Corporation, the proceeds of refunding bonds may be: applied to the purchase, retirement at maturity, or redemption of outstanding bonds on a date the Corporation determines; and pending application under item (1) of this subsection, placed in escrow. The Corporation may invest escrowed refunding bond proceeds in investments and other obligations, maturing on appropriate dates to assure the prompt payment of the principal of, interest on, and any redemption premium on the bonds to be refunded. Except as provided in subparagraph (ii) of this paragraph, the Corporation shall determine the investment of the proceeds of refunding bonds. If the Corporation loans the proceeds of refunding bonds to a person as provided in § 10-519 of this subtitle, the loan recipient shall determine the investment of the proceeds of refunding bonds. The earnings and any profits on investments or other obligations may be applied to the payment of the outstanding bonds to be refunded. After the terms of the escrow have been fully satisfied, the balance of the proceeds and earnings and profits on investments or other obligations may be returned to the Corporation or the loan recipient for use in any lawful manner.

The Corporation may pledge or assign: any of its revenues; any of its rights to receive revenues; money and securities in accounts established to secure a bond; and a lien or security interest granted or assignment made to the Corporation. A pledge or assignment: is valid and binding against any person having a claim against the Corporation, in contract, tort, or otherwise, regardless of whether the person has notice of the pledge or assignment; and has priority over the claim. A resolution, trust agreement, assignment, financing agreement, or other instrument that creates a lien, security interest, assignment, or pledge under subsection (a) of this section: shall be filed in the records of the Corporation; but need not be filed or recorded elsewhere.

The Corporation may: lend or otherwise make available the proceeds of its bonds to a person to finance costs of a project; and enter into a financing agreement, mortgage, or other instrument that it determines is necessary or desirable to evidence or secure the loan. A lease for a project may require or authorize the lessee or another person to purchase or otherwise acquire the project for consideration, that the Corporation establishes, on: payment of the principal of and interest on the bonds that financed the cost of the project; or other provision for payment satisfactory to the Corporation. Consideration required under paragraph (1) of this subsection may be nominal.

In this section the following words have the meanings indicated. “Eligible seafood processing project” means a project to establish or expand the business of a licensed seafood dealer that: supports the goal of increasing the amount of oyster shells retained in the State and returned to the Chesapeake Bay; and meets the criteria established by the Corporation under this section. “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. “Repletion” means enhancing areas where commercial harvest is permitted. “Seasonal full–time job” means a position for which an individual is required to work a minimum of 420 hours during 12 weeks of a 3–month period. 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 seasonal full–time job that is projected to be created or retained. Beginning 1 year after receipt of a loan under this section, a loan recipient shall report each year for 3 consecutive years to the Corporation to certify the number of full–time jobs and seasonal full–time jobs that were created or retained by the recipient during the previous 12–month period. 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. The Corporation shall forgive any loan provided under this section as follows: 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 $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. A person is eligible to receive financing under this section if the person: has been a licensed seafood dealer for at least 3 years; or has held a tidal fish license issued under § 4–701 of the Natural Resources Article for at least 5 years and agrees to obtain a seafood dealer license on receiving financing under this section; has paid all applicable business taxes and fees for the past 5 years; demonstrates to the satisfaction of the Corporation through a business plan and pro forma financial projections that, within 5 years after receiving financing under this section, the person’s seafood processing business will have the potential to achieve viability as a business; meets any other eligibility requirements established by the Corporation; and agrees to the financing terms and conditions established by the Corporation that are otherwise in conformance with this section. For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $1,000,000 to the Corporation for the purpose of providing loans under this section. The appropriation in paragraph (1) of this subsection shall be distributed to a special account to be used only to: provide loans under this section; and pay the costs necessary to administer and operate this section.

The Corporation may purchase and sell agricultural loans made by lenders, at the prices and on the terms and conditions that it determines. A lender may purchase and sell agricultural loans to the Corporation in accordance with this section. The Corporation may make loans to and deposits with lenders at interest rates, terms, and conditions that it determines. A lender may borrow funds and accept deposits from the Corporation in accordance with this subtitle and the bylaws of the Corporation. The Corporation shall require that all proceeds of its loans to or deposits with lenders, or an equivalent amount, shall be used by the lenders to make agricultural loans, subject to terms and conditions that the Corporation determines. The Corporation may insure and reinsure agricultural loans made by lenders, subject to the terms, security provisions, and reserve requirements determined by the Corporation in accordance with the bylaws of the Corporation. Unless otherwise determined by the Corporation, agricultural loans shall be insured to the amount of 100% of the unpaid principal of and interest on each agricultural loan. An insured agricultural loan is in default when the holder of the agricultural loan requests the Corporation to pay insurance on the loan in accordance with any agreement with respect to the insurance executed in accordance with this section. The Corporation may enter into agreements with any person, lender, or holder of an insured agricultural loan to: provide for the administration, application, and repayment of the agricultural loan; and establish the conditions for payment of insurance by the Corporation, and the servicing, suit on, or foreclosure of the agricultural loan. The aggregate value of all agricultural loans insured by the Corporation and outstanding at any one time may not exceed 20 times the total value of money, investments, properties, and other assets of the Corporation. Notwithstanding paragraph (1) of this subsection, the aggregate value of agricultural loans insured and outstanding may be further expanded by use of federal, State, or private loan insurance, reinsurance, or guarantees of which the Corporation is or shall become the beneficiary.

The Corporation may: study agricultural conditions and needs in the State, needs relating to the promotion of agricultural industries, and ways of meeting those needs; make the studies available to the public and to agricultural industries; and engage in research or disseminate information on agriculture and agricultural marketing and promotion.

Each unit in the Executive Branch of State government and each institution of higher education in the State may work with the Corporation on matters relating to the unit. Each political subdivision and regional planning and development council in the State may work with the Corporation on matters relating to the political subdivision or entity. The following units may provide technical and other support to the Corporation: the Department; the Department of Agriculture; the Department of Natural Resources; the Maryland Economic Development Corporation; the Maryland Food Center Authority; the Maryland Technology Development Corporation; the Rural Maryland Council; and the Maryland Cooperative Extension Service.

The Corporation may receive annual funding through an appropriation in the State budget. The Corporation may also receive money for projects included in the budgets of State units. To assist the Corporation in complying with subsection (c) of this section, the Governor shall include each year in the State budget bill an appropriation to the Corporation for rural business development and assistance as follows: for fiscal year 2021, $2,875,000; and for each of the fiscal years 2022 through 2025, $2,735,000. Except as provided in subsubparagraph 2 of this subparagraph, in addition to any money provided under subparagraph (i) of this paragraph, the Governor may include each year in the State budget bill an appropriation to the Corporation in an amount not exceeding $5,000,000 for rural land acquisition and easement programs, including programs to assist young and beginning farmers. For fiscal year 2024, the Governor shall include in the annual budget bill a General Fund appropriation in the amount of $10,000,000 to the Corporation for the Next Generation Farmland Acquisition Program. The funds appropriated to the Corporation under subsection (a)(3)(i)2 of this section shall be used to support the Corporation’s rural business loan programs and small matching grant programs. All unexpended and unencumbered money appropriated to the Corporation shall remain with the Corporation for future use. The Corporation shall conduct its financial affairs so that, by fiscal year 2026, it is self–sufficient and in no further need of general operating support by the State. The Corporation may use up to 3% of the money received under § 13–306(a)(3)(ii)2 of the Tax – Property Article for administrative costs associated with the Next Generation Farmland Acquisition Program.

A debt, claim, obligation, or liability of the Corporation, whenever incurred, is the debt, claim, obligation, or liability of the Corporation only and not of the State, a unit or instrumentality of the State, or a State officer or employee. A debt, claim, obligation, or liability of the Corporation may not be considered a debt of the State or a pledge of its credit.

The Corporation is exempt from State and local taxes.

In this section the following words have the meanings indicated. “Beginner waterman” means an individual who: is a resident of the State; holds a tidal fish license under § 4–701 of the Natural Resources Article; or holds a commercial license to catch finfish, crabs, clams, and oysters, issued by the Potomac River Fisheries Commission in accordance with § 4–306 of the Natural Resources Article; and has at least 2 years and not more than 10 years of experience in commercial seafood harvesting. “Generational waterman” means an individual who: is a resident of the State; holds a tidal fish license under § 4–701 of the Natural Resources Article; or holds a commercial license to catch finfish, crabs, clams, and oysters, issued by the Potomac River Fisheries Commission in accordance with § 4–306 of the Natural Resources Article; and 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. “Program” means the Maryland Watermen’s Microloan Program. “Qualified commercial fisherman” includes: a beginner waterman; and a generational waterman. There is a Maryland Watermen’s Microloan Program in the Corporation. The purpose of the Program is to provide loans to qualified commercial fishermen to continue commercial operations in the State, including for purchasing: boats; mechanical equipment; fishing gear; fishing quota; and any other item used in commercial seafood harvesting. The Corporation shall implement and administer the Program in accordance with this section. Through June 30, 2025, only generational watermen are eligible to receive a loan under the Program. Starting July 1, 2025, the following persons are eligible to receive a loan under the Program: generational watermen; beginner watermen; and seafood processing businesses. For loans made under the Program, the Corporation shall determine: the eligibility of an applicant; the amount of loan to be given to a borrower; the terms and conditions of a loan contract; and the amount of debt forgiveness that may be provided to a borrower for loan repayment performance. A borrower under the Program may not have more than one outstanding loan from the Program during any period of time. For each of fiscal years 2024 through 2025, the Governor shall include in the annual State budget bill an appropriation of $500,000 to the Program. The appropriation in paragraph (1) of this subsection shall be distributed to a special fund, to be used only to: make loans under the Program; and pay the costs necessary to administer and operate the Program.

In this section, “Fund” means the Maryland Seafood Industry Financial Assistance Fund. There is a Maryland Seafood Industry Financial Assistance Fund. The purpose of the Fund is to provide financial assistance, including loans, to commercial watermen and small businesses in the seafood industry. The Corporation shall administer the Fund. The Fund consists of: money appropriated in the State budget to the Fund; loan principal repayments related to the financial assistance under this section; money made available from the federal, State, or local government; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for: financial assistance, including loans; and the costs of the Corporation to administer this section. For financial assistance, including loans, provided under this section, the Corporation shall determine the following: the application and award process; eligibility criteria; the amount of the financial assistance, including loans, for each applicant; the terms and conditions of financial assistance, including loans; the amount of loan forgiveness that the Corporation may provide for loan repayment performance; and any other provisions necessary to carry out this section.

If a borrower who holds a tidal fish license under § 4–701 of the Natural Resources Article is delinquent in the repayment of a loan under this subtitle, the Corporation shall notify the Department of Natural Resources. If a borrower under paragraph (1) of this subsection becomes compliant with the repayment of a loan under this subtitle, the Corporation shall notify the Department of Natural Resources. Notwithstanding § 4–701 of the Natural Resources Article, after receiving a notification under subsection (a)(1) of this section and until receiving a notification under subsection (a)(2) of this section, the Department of Natural Resources may not approve a transfer of the tidal fish license or authorization.

The books and records of the Corporation are subject to audit: by the State at its discretion; and each year by an independent auditor.

On or before October 1 of each year, the Corporation shall report on its status to the Governor, the Maryland Agricultural Commission, the Maryland Economic Development Commission, and, in accordance with § 2–1257 of the State Government Article, the General Assembly. The report shall include a complete operating and financial statement and a summary of the Corporation’s activities during the preceding fiscal year.