MD
Maryland Senate Bill SB898

Maryland 2022 Regular Session

Maryland Senate Bill SB898 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *sb0898*
66
77 SENATE BILL 898
88 I1, D4, P1 2lr1864
99
1010 By: Senator Kagan
1111 Introduced and read first time: February 7, 2022
1212 Assigned to: Finance
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Domestic Violence Survivor Resilience Loan Program and Guarantee Fund 2
1919
2020 FOR the purpose of requiring a financial institution to establish a process to classify a loan 3
2121 issued to a participant in the Domestic Violence Survivor Resilience Loan Program 4
2222 as a domestic violence survivor resilience loan; requiring a financial institution that 5
2323 employs loan officers to implement a training program on the dynamics of domestic 6
2424 violence and financial abuse incorporating training materials developed by the Office 7
2525 of the Commission of Financial Regulation; establishing the Domestic Violence 8
2626 Survivor Resilience Loan Program within the Office of the Secretary of State to 9
2727 establish eligibility for a domestic violence survivor resilience loan and provide loan 10
2828 guarantees; establishing the Domestic Violence Survivor Resilience Loan Guarantee 11
2929 Fund as a special, nonlapsing fund to guarantee a domestic violence survivor 12
3030 resilience loan for up to a certain amount; requiring interest earnings of the Fund to 13
3131 be credited to the Fund; and generally relating to the Domestic Violence Survivor 14
3232 Resilience Loan Program and Guarantee Fund. 15
3333
3434 BY adding to 16
3535 Article – Financial Institutions 17
3636 Section 1–501 through 1–504 to be under the new subtitle “Subtitle 5. Domestic 18
3737 Violence Survivor Resilience Loans” 19
3838 Annotated Code of Maryland 20
3939 (2020 Replacement Volume and 2021 Supplement) 21
4040
4141 BY repealing and reenacting, without amendments, 22
4242 Article – State Finance and Procurement 23
4343 Section 6–226(a)(2)(i) 24
4444 Annotated Code of Maryland 25
4545 (2021 Replacement Volume) 26
4646
4747 BY repealing and reenacting, with amendments, 27
4848 Article – State Finance and Procurement 28 2 SENATE BILL 898
4949
5050
5151 Section 6–226(a)(2)(ii)144. and 145. 1
5252 Annotated Code of Maryland 2
5353 (2021 Replacement Volume) 3
5454
5555 BY adding to 4
5656 Article – State Finance and Procurement 5
5757 Section 6–226(a)(2)(ii)146. 6
5858 Annotated Code of Maryland 7
5959 (2021 Replacement Volume) 8
6060
6161 BY adding to 9
6262 Article – State Government 10
6363 Section 7–401 through 7–410 to be under the new subtitle “Subtitle 4. Domestic 11
6464 Violence Survivor Resilience Loan Program and Guarantee Fund” 12
6565 Annotated Code of Maryland 13
6666 (2021 Replacement Volume) 14
6767
6868 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
6969 That the Laws of Maryland read as follows: 16
7070
7171 Article – Financial Institutions 17
7272
7373 SUBTITLE 5. DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOANS. 18
7474
7575 1–501. 19
7676
7777 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANING S 20
7878 INDICATED. 21
7979
8080 (B) “DOMESTIC VIOLENCE ” HAS THE MEANING STATED I N § 7–401 OF THE 22
8181 STATE GOVERNMENT ARTICLE. 23
8282
8383 (C) “DOMESTIC VIOLENCE SUR VIVOR RESILIENCE LOAN” MEANS A LOAN 24
8484 ISSUED SUBJECT TO TH E REQUIREMENTS OF TH IS SUBTITLE. 25
8585
8686 (D) “FUND” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 26
8787 LOAN GUARANTEE FUND UNDER TITLE 7, SUBTITLE 4 OF THE STATE GOVERNMENT 27
8888 ARTICLE. 28
8989
9090 (E) “PROGRAM” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 29
9191 LOAN PROGRAM UNDER TITLE 7, SUBTITLE 4 OF THE STATE GOVERNMENT 30
9292 ARTICLE. 31
9393
9494 (F) “PROGRAM PARTICIPANT ” HAS THE MEANING STAT ED IN § 7–401 OF 32
9595 THE STATE GOVERNMENT ARTICLE. 33 SENATE BILL 898 3
9696
9797
9898
9999 1–502. 1
100100
101101 (A) A FINANCIAL INSTITUTION SHALL ESTABLISH A PROCESS TO CLASSIFY 2
102102 A LOAN ISSUED TO A PROGRAM PARTICIPANT AS A DOMESTIC VIOLENCE SUR VIVOR 3
103103 RESILIENCE LOAN. 4
104104
105105 (B) (1) SUBJECT TO THE UNDERWRITING REQU IREMENTS OF THE 5
106106 FINANCIAL INSTITUTIO N AND REGULATIONS ADOP TED BY THE COMMISSIONER , A 6
107107 PROGRAM PARTICIPANT MAY APPLY FOR A DOMESTIC VIOLENCE SURVIVOR 7
108108 RESILIENCE LOAN. 8
109109
110110 (2) A FINANCIAL INSTITUTIO N SHALL VERIFY AN IN DIVIDUAL’S 9
111111 STATUS AS A PROGRAM PARTICIPANT W ITH THE SECRETARY OF STATE. 10
112112
113113 (3) WHEN EVALUATING AN AP PLICATION FOR A DOME STIC VIOLENCE 11
114114 SURVIVOR RESILIENCE LOAN, A FINANCIAL INSTITUT ION SHALL: 12
115115
116116 (I) EVALUATE THE APPLICAT ION IN A HOLISTIC FA SHION; AND 13
117117
118118 (II) WITHOUT REQUIRING A PROGRAM PARTICIPANT TO 14
119119 DISCLOSE INFORMATION ABOUT THE PROGRAM PARTICIPANT ’S PERSONAL 15
120120 HISTORY WITH DOMESTI C VIOLENCE, GENERALLY C ONSIDER: 16
121121
122122 1. THE DYNAMICS OF DOMES TIC VIOLENCE AND 17
123123 FINANCIAL ABUSE ; AND 18
124124
125125 2. THE IMPACT OF DOMESTI C VIOLENCE ON THE 19
126126 FINANCIAL QUALIFICAT IONS OF LOAN APPLICANT S, INCLUDING THE IMPACT ON 20
127127 CREDIT AND EMPLOYMENT HISTO RY. 21
128128
129129 (C) THE RATE OF INTEREST THAT MAY BE CHARGED TO A PROGRAM 22
130130 PARTICIPANT MAY NOT EXCEED 2% ABOVE THE AVERAGE INTEREST RATE FOR THE 23
131131 TYPE OF LOAN APPLIED FOR AT THE TIME OF APPLICATION . 24
132132
133133 (D) ON OR AFTER JULY 1, 2023, A FINANCIAL INSTITUTIO N THAT ISSUES A 25
134134 DOMESTIC VIOLENCE SU RVIVOR RESILIENCE LOAN TO A PROGRAM PARTICIPANT 26
135135 MAY APPLY TO THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE FUND FOR A 27
136136 LOAN GUARANTEE . 28
137137
138138 1–503. 29
139139
140140 (A) (1) THE COMMISSIONER SHALL DE VELOP TRAINING MATER IALS FOR 30 4 SENATE BILL 898
141141
142142
143143 FINANCIAL INSTITUTIO NS ON THE DYNAMICS O F DOMESTIC VIOLENCE AND 1
144144 FINANCIAL ABUSE . 2
145145
146146 (2) THE TRAINING MATERIAL S DEVELOPED UNDER TH IS SUBSECTION 3
147147 SHALL INCLUDE I NFORMATION ON THE IM PACTS OF DOMESTIC VIOLEN CE ON AN 4
148148 INDIVIDUAL’S EMPLOYMENT AND CRE DIT HISTORY. 5
149149
150150 (B) A FINANCIAL INSTITUTION THAT EMPLOYS LOAN OF FICERS SHALL 6
151151 IMPLEMENT A TRAINING PROGRAM FOR LOAN OFF ICERS ON THE DYNAMIC S OF 7
152152 DOMESTIC VIOLENCE AN D FINANCIAL ABUSE , INCORPORATING THE TRAINING 8
153153 MATERIALS DEVELOPED BY THE COMMISSIONER . 9
154154
155155 1–504. 10
156156
157157 THE COMMISSIONER , IN COORDINATION WITH THE SECRETARY OF STATE, 11
158158 SHALL ADOPT REGULATI ONS TO CARRY OUT THIS SUBTITLE . 12
159159
160160 Article – State Finance and Procurement 13
161161
162162 6–226. 14
163163
164164 (a) (2) (i) Notwithstanding any other provision of law, and unless 15
165165 inconsistent with a federal law, grant agreement, or other federal requirement or with the 16
166166 terms of a gift or settlement agreement, net interest on all State money allocated by the 17
167167 State Treasurer under this section to special funds or accounts, and otherwise entitled to 18
168168 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 19
169169 Fund of the State. 20
170170
171171 (ii) The provisions of subparagraph (i) of this paragraph do not apply 21
172172 to the following funds: 22
173173
174174 144. the Health Equity Resource Community Reserve Fund; 23
175175 [and] 24
176176
177177 145. the Access to Counsel in Evictions Special Fund; AND 25
178178
179179 146. THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 26
180180 LOAN GUARANTEE FUND. 27
181181
182182 Article – State Government 28
183183
184184 SUBTITLE 4. DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN PROGRAM AND 29
185185 GUARANTEE FUND. 30
186186
187187 7–401. 31 SENATE BILL 898 5
188188
189189
190190
191191 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
192192 INDICATED. 2
193193
194194 (B) “DOMESTIC VIOLENCE ” MEANS A PATTERN OF BEHAVIO R INVOLVING 3
195195 THE USE OR ATTEMPTED USE OF PHYSICAL , SEXUAL, VERBAL, PSYCHOLOGICAL , 4
196196 EMOTIONAL, ECONOMIC, FINANCIAL, OR TECHNOLOGICAL ABU SE OR ANY OTHER 5
197197 COERCIVE BEHAVIOR CO MMITTED, ENABLED, OR SOLICITED TO GAIN OR MAINTAIN 6
198198 POWER AND CONTROL OV ER A VICTIM BY AN INDIVIDUAL WHO: 7
199199
200200 (1) IS A CURRENT OR FORM ER SPOUSE OR DATING PARTN ER OF THE 8
201201 VICTIM, OR ANOTHER INDIVIDUAL SIMILARLY SITUATED T O A SPOUSE OF THE 9
202202 VICTIM; 10
203203
204204 (2) IS COHABITATING WITH OR HAS COHABITATED W ITH THE VICTIM 11
205205 AS A SPOUSE OR DATIN G PARTNER; 12
206206
207207 (3) SHARES A CHILD IN CO MMON WITH THE VICTIM ; 13
208208
209209 (4) IS AN ADULT FAMILY M EMBER OF, OR A PAID OR NONPAID 14
210210 CAREGIVER IN AN ONGO ING RELATIONSHIP OF TRUST WITH, A VICTIM AT LEAST 50 15
211211 YEARS OLD OR AN ADULT VICT IM WITH DISABILITIES ; OR 16
212212
213213 (5) COMMITS ACTS AGAINST A YOUTH OR ADULT VIC TIM WHO IS 17
214214 PROTECTED FROM THOSE ACTS UNDER ANY FAMILY OR DOMESTIC V IOLENCE LAW. 18
215215
216216 (C) “FUND” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 19
217217 LOAN GUARANTEE FUND. 20
218218
219219 (D) “PROGRAM” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 21
220220 LOAN PROGRAM. 22
221221
222222 (E) “PROGRAM PARTICIPANT ” MEANS AN INDIVIDUAL DESIGNATED AS A 23
223223 PROGRAM PARTICIPANT U NDER THIS SUBTITLE . 24
224224
225225 7–402. 25
226226
227227 THE PURPOSE OF THE PROGRAM IS TO: 26
228228
229229 (1) ESTABLISH AN INDIVID UAL’S ELIGIBILITY TO APP LY FOR A LOAN 27
230230 ISSUED BY A FINANCIA L INSTITUTION UNDER TITLE 1, SUBTITLE 5 OF THE 28
231231 FINANCIAL INSTITUTIONS ARTICLE; AND 29
232232 6 SENATE BILL 898
233233
234234
235235 (2) PROVIDE LOAN GUARANT EES. 1
236236
237237 7–403. 2
238238
239239 THE SECRETARY OF STATE SHALL ESTABLISH AND ADMINISTER THE 3
240240 DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN PROGRAM FOR SURVIVORS OF 4
241241 DOMESTIC VIOLENCE . 5
242242
243243 7–404. 6
244244
245245 (A) ON OR AFTER JULY 1, 2023, AN INDIVIDUAL MAY APPLY TO 7
246246 PARTICIPATE IN THE PROGRAM. 8
247247
248248 (B) AN APPLICATION TO PARTICIPATE IN THE PROGRAM SHALL BE IN T HE 9
249249 FORM REQUIRED BY THE SECRETARY OF STATE AND SHALL CONTA IN: 10
250250
251251 (1) A STATEMENT THAT : 11
252252
253253 (I) THE APPLICANT IS A S URVIVOR OF DOMESTIC VIOLENCE ; 12
254254 AND 13
255255
256256 (II) THE APPLICANT HAS STRUGGLED TO ACH IEVE FINANCIAL 14
257257 SECURITY; 15
258258
259259 (2) EVIDENCE THAT THE AP PLICANT IS ELIGIBLE FOR PROGRAM 16
260260 PARTICIPATION , INCLUDING: 17
261261
262262 (I) CERTIFIED LAW ENFORC EMENT, COURT, OR OTHER 18
263263 FEDERAL OR STATE AGENCY RECORDS OR FILES; 19
264264
265265 (II) DOCUMENTATION FROM A DOMESTIC VIOLENCE 20
266266 PREVENTION OR ASSISTANCE PROGRAM ; 21
267267
268268 (III) DOCUMENTATION FROM A RELIGIOUS, MEDICAL, OR OTHER 22
269269 PROFESSIONAL FROM WH OM THE APPLICANT HAS SOUGHT ASSISTANCE OR 23
270270 TREATMENT AS A SURVI VOR OF DOMESTIC VIOL ENCE; OR 24
271271
272272 (IV) A STATEMENT FROM THE APPLICANT ABOUT THE 25
273273 APPLICANT’S EXPERIENCE WITH DOMESTI C VIOLENCE; 26
274274
275275 (3) A STATEMENT ABOUT THE DIFFICULTI ES THE APPLICANT HAS 27
276276 FACED IN ACHIEVING FINANCIAL STABILITY; 28
277277 SENATE BILL 898 7
278278
279279
280280 (4) THE MAILING ADDRESS , E–MAIL ADDRESS , AND TELEPHONE 1
281281 NUMBER WHERE THE APPLICANT MAY BE CONTACTED BY THE SECRETARY OF 2
282282 STATE; 3
283283
284284 (5) A SWORN STATEMENT BY THE APPLICANT THAT , TO THE BEST OF 4
285285 THE APPLICANT ’S KNOWLEDGE , ALL THE INFORMATION CONTAINED IN THE 5
286286 APPLICATION IS TRUE ; 6
287287
288288 (6) THE SIGNATURE OF THE APPLICANT AND THE DA TE WHEN THE 7
289289 APPLICANT SIGNED THE APPLICATION; 8
290290
291291 (7) A VOLUNTARY RELEASE AND WAIVER OF ALL FU TURE CLAIMS 9
292292 AGAINST THE STATE THAT MAY ARISE FROM PARTICIPATION I N THE PROGRAM 10
293293 EXCEPT FOR A CLAIM B ASED ON GROSS NEGLIG ENCE; AND 11
294294
295295 (8) ANY OTHER RELEVANT INFORMATION THAT THE SECRETARY MAY 12
296296 REQUIRE. 13
297297
298298 (C) ON THE FILING OF A PR OPERLY COMPLETED APP LICATION AND 14
299299 RELEASE, THE SECRETARY OF STATE SHALL: 15
300300
301301 (1) REVIEW THE APPLICATI ON AND RELEASE ; AND 16
302302
303303 (2) IF THE APPLICATION A ND RELEASE ARE PROPE RLY COMPLETED 17
304304 AND ACCURATE, DESIGNATE THE APPLIC ANT AS A PROGRAM PARTICIPANT . 18
305305
306306 7–405. 19
307307
308308 (A) IF AN APPLICANT FALSE LY ATTESTS TO ANY INFORMATION IN THE 20
309309 APPLICATION OR KNOWI NGLY PROVIDES FALSE INFORMATION WHEN APP LYING FOR 21
310310 PARTICIPATION IN THE PROGRAM, THE APPLICANT SHALL NO LONGER BE ALLOWED 22
311311 TO PARTICIPATE IN TH E PROGRAM. 23
312312
313313 (B) A PERSON MAY NOT KNOWI NGLY MAKE A FALSE AT TESTATION OR 24
314314 KNOWINGLY PROVIDE FA LSE INFORMATION IN A N APPLICATION. 25
315315
316316 (C) A PERSON WHO VIOLATES SUBSECTION (B) OF THIS SECTION IS G UILTY 26
317317 OF A MISDEMEANOR AND ON CONVICTION IS SUBJEC T TO IMPRISONMENT NO T 27
318318 EXCEEDING 6 MONTHS OR A FINE NOT EXCEEDING $500 OR BOTH. 28
319319
320320 7–406. 29
321321
322322 (A) ONCE AN APPLICATION I S APPROVED, A PROGRAM PARTICIPANT M AY 30 8 SENATE BILL 898
323323
324324
325325 CONTACT A FINANCIAL INSTITUTION TO APPLY FOR A LOAN UNDER TITLE 1, 1
326326 SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE. 2
327327
328328 (B) THE SECRETARY OF STATE SHALL PROVIDE A PROGRAM PARTICIPANT 3
329329 WITH THE OPPORTUNITY TO PARTICIPATE IN FI NANCIAL LITERACY PRO GRAMMING. 4
330330
331331 7–407. 5
332332
333333 (A) A FINANCIAL INSTITUTIO N THAT IS SEEKING TO ISSUE A LOAN TO A 6
334334 PROGRAM PART ICIPANT UNDER TITLE 1, SUBTITLE 5 OF THE FINANCIAL 7
335335 INSTITUTIONS ARTICLE MAY APPLY TO THE SECRETARY OF STATE FOR A LOAN 8
336336 GUARANTEE . 9
337337
338338 (B) SUBJECT TO THE AVAILA BILITY OF FUNDS, THE SECRETARY OF STATE 10
339339 MAY ISSUE A LOAN GUA RANTEE TO A FINANCIA L INSTITUTION ON BEHALF OF A 11
340340 PROGRAM PARTICIPANT I F THE FINANCIAL INSTITUTION COMPLIES WITH THE 12
341341 REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS 13
342342 ARTICLE. 14
343343
344344 (C) A LOAN GUARANTEE UNDER THIS SUBTITLE MAY NO T EXCEED $15,000 15
345345 TO A SINGLE PROGRAM PARTICIPANT . 16
346346
347347 7–408. 17
348348
349349 (A) THERE IS A DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN 18
350350 GUARANTEE FUND. 19
351351
352352 (B) THE PURPOSE OF THE FUND IS TO PROVIDE LOAN GUAR ANTEES FOR 20
353353 PROGRAM PARTICIPANTS WHO APPLY FOR AN D RECEIVE LOANS UNDER TITLE 1, 21
354354 SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE. 22
355355
356356 (C) THE SECRETARY OF STATE SHALL ADMINISTER THE FUND. 23
357357
358358 (D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 24
359359 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 25
360360
361361 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 26
362362 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 27
363363
364364 (E) THE FUND CONSISTS OF : 28
365365
366366 (1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 29
367367 SENATE BILL 898 9
368368
369369
370370 (2) INTEREST EARNINGS; AND 1
371371
372372 (3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 2
373373 THE BENEFIT OF THE FUND. 3
374374
375375 (F) THE FUND MAY BE USED ONLY TO: 4
376376
377377 (1) PROVIDE GUARANTEES FOR LOANS ISSUED UNDER TITLE 1, 5
378378 SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE; AND 6
379379
380380 (2) ADMINISTER THE FUND. 7
381381
382382 (G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 8
383383 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 9
384384
385385 (2) ANY INTEREST EARNING S OF THE FUND SHALL BE CREDITE D TO 10
386386 THE FUND. 11
387387
388388 (H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 12
389389 WITH THE STATE BUDGET. 13
390390
391391 7–409. 14
392392
393393 IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL 15
394394 BUDGET BILL AN APPRO PRIATION OF $2,000,000 TO THE FUND. 16
395395
396396 7–410. 17
397397
398398 THE SECRETARY OF STATE, IN COORDINATION WITH THE COMMISSIONER OF 18
399399 FINANCIAL REGULATION, SHALL ADOPT REGULATI ONS TO CARRY OUT THI S 19
400400 SUBTITLE. 20
401401
402402 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
403403 1, 2022. 22