HB 1599

WES MOORE, Governor  Ch. 553
Chapter 553
  (House Bill 1599)
AN ACT concerning
  Chesapeake Bay Enhancement Program – Established
   Chesapeake Bay – Enhancement Program and Maryland Seafood Industry
  Financial Assistance Fund – Established
FOR the purpose of establishing the Chesapeake Bay Enhancement Program to provide
     funding for certain oyster propagation and replenishment projects that mitigate the
     effects on the State’s oyster population of certain transportation projects on the
     State’s oyster population; establishing the Maryland Seafood Industry Financial
     Assistance Fund to provide financial assistance to certain commercial watermen and
     small businesses; prohibiting the Department of Natural Resources from making
     certain approvals for tidal fish licenses or authorizations of certain borrowers; and
     generally relating to the Chesapeake Bay Enhancement Program and Maryland
     Seafood Industry Financial Assistance Fund.
BY adding to
     Article – Natural Resources
     Section 4–1020.1
     Annotated Code of Maryland
     (2023 Replacement Volume and 2025 Supplement)
BY adding to
     Article – Economic Development
     Section 10–526.1 and 10–526.2
     Annotated Code of Maryland
     (2024 Replacement Volume and 2025 Supplement)
      SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:
  Article – Natural Resources
4–1020.1.
      (A)
        IN THIS SECTION, “PROGRAM” MEANS THE CHESAPEAKE BAY
ENHANCEMENT PROGRAM.
      (B)
        THERE IS A CHESAPEAKE BAY ENHANCEMENT PROGRAM IN THE
DEPARTMENT.
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Ch. 553  2026 LAWS OF MARYLAND
     (C)    THE PURPOSE OF THE PROGRAM IS TO PROVIDE FUNDING FOR OYSTER
PROPAGATION AND REPLENISHMENT PROJECTS THAT MITIGATE THE EFFECTS ON
THE STATE’S OYSTER POPULATION OF TRANSPORTATION PROJECTS THAT
MAINTAIN OR EXPAND THE HELEN DELICH BENTLEY PORT OF BALTIMORE,
INCLUDING:
  (1)   DREDGING;
  (2)   THE CONSTRUCTION OR MAINTENANCE OF:
  (I)    PIERS;
  (II)   BRIDGES; OR
  (III) SHIPPING CHANNELS; AND
  (3) CONSTRUCTION AT THE HELEN DELICH BENTLEY PORT OF
BALTIMORE     OF TRANSPORTATION PROJECTS ON THE STATE’S OYSTER
POPULATION.
     (D)    FOR FISCAL YEAR 2028 AND EACH FISCAL YEAR THEREAFTER, THE
GOVERNOR SHALL INCLUDE IN THE ANNUAL BUDGET BILL AN APPROPRIATION OF
$2,000,000 TO THE PROGRAM FROM THE TRANSPORTATION TRUST FUND UNDER §
3–216 OF THE TRANSPORTATION ARTICLE THE DEPARTMENT SHALL USE FUNDING
UNDER THE PROGRAM TO SUPPORT OYSTER PROPAGATION AND REPLENISHMENT
AND PROGRAM MANAGEMENT.
       SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
  Article – Economic Development
10–526.1.
     (A)  IN THIS SECTION, “FUND” MEANS THE MARYLAND SEAFOOD INDUSTRY
FINANCIAL ASSISTANCE FUND.
    (B)     THERE IS A MARYLAND SEAFOOD INDUSTRY FINANCIAL ASSISTANCE
FUND.
     (C)  THE PURPOSE OF THE FUND IS TO PROVIDE FINANCIAL ASSISTANCE,
INCLUDING LOANS, TO COMMERCIAL WATERMEN AND SMALL BUSINESSES IN THE
SEAFOOD INDUSTRY.
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  WES MOORE, Governor  Ch. 553
     (D)    THE CORPORATION SHALL ADMINISTER THE FUND.
     (E)    THE FUND CONSISTS OF:
  (1)   MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND;
  (2)LOAN PRINCIPAL REPAYMENTS RELATED TO THE FINANCIAL
ASSISTANCE UNDER THIS SECTION;
        (3) MONEY MADE AVAILABLE FROM THE FEDERAL, STATE, OR LOCAL
GOVERNMENT; AND
  (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR
THE BENEFIT OF THE FUND.
     (F)    THE FUND MAY BE USED ONLY FOR:
  (1)   FINANCIAL ASSISTANCE, INCLUDING LOANS; AND
  (2)   THE COSTS OF THE CORPORATION TO ADMINISTER THIS SECTION.
     (G)   FOR FINANCIAL ASSISTANCE, INCLUDING LOANS, PROVIDED UNDER
THIS SECTION, THE CORPORATION SHALL DETERMINE THE FOLLOWING:
  (1)   THE APPLICATION AND AWARD PROCESS;
  (2)   ELIGIBILITY CRITERIA;
  (3)THE AMOUNT OF THE FINANCIAL ASSISTANCE, INCLUDING LOANS,
FOR EACH APPLICANT;
  (4)
  THE      TERMS   AND   CONDITIONS   OF   FINANCIAL   ASSISTANCE,
INCLUDING LOANS;
  (5)THE AMOUNT OF LOAN FORGIVENESS THAT THE CORPORATION
MAY PROVIDE FOR LOAN REPAYMENT PERFORMANCE; AND
  (6)   ANY OTHER PROVISIONS NECESSARY TO CARRY OUT THIS
SECTION.
10–526.2.
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Ch. 553  2026 LAWS OF MARYLAND
     (A) (1) 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.
  (2)
  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.
      (B) 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.
      SECTION 3. AND BE IT FURTHER ENACTED, That:
  (1)   the Maryland Agricultural and Resource–Based Industry Development
Corporation may transfer up to $337,500 each from the Oyster Shucking House Loan
Program and the Watermen’s Microloan Program to the Maryland Seafood Industry
Financial Assistance Fund established under Section 2 of this Act to provide additional
financial assistance to commercial watermen and small businesses in the seafood industry;
and
  (2)    the Maryland Agricultural and Resource–Based Industry Development
Corporation shall repay any funds transferred from the Oyster Shucking House Loan
Program or the Watermen’s Microloan Program to the Maryland Seafood Industry
Financial Assistance Fund established under Section 2 of this Act on or before June 30,
2028.
       SECTION 4. AND BE IT FURTHER ENACTED, That Sections 2 and 3 of this Act
shall take effect July 1, 2026.
      SECTION 2. 5. AND BE IT FURTHER ENACTED, That, except as provided in
Section 4 of this Act, this Act shall take effect October 1, 2026.
Approved by the Governor, May 12, 2026.
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