EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*sb0898*
SENATE BILL 898
I1, D4, P1 2lr1864
By: Senator Kagan
Introduced and read first time: February 7, 2022
Assigned to: Finance
A BILL ENTITLED
AN ACT concerning 1
Domestic Violence Survivor Resilience Loan Program and Guarantee Fund 2
FOR the purpose of requiring a financial institution to establish a process to classify a loan 3
issued to a participant in the Domestic Violence Survivor Resilience Loan Program 4
as a domestic violence survivor resilience loan; requiring a financial institution that 5
employs loan officers to implement a training program on the dynamics of domestic 6
violence and financial abuse incorporating training materials developed by the Office 7
of the Commission of Financial Regulation; establishing the Domestic Violence 8
Survivor Resilience Loan Program within the Office of the Secretary of State to 9
establish eligibility for a domestic violence survivor resilience loan and provide loan 10
guarantees; establishing the Domestic Violence Survivor Resilience Loan Guarantee 11
Fund as a special, nonlapsing fund to guarantee a domestic violence survivor 12
resilience loan for up to a certain amount; requiring interest earnings of the Fund to 13
be credited to the Fund; and generally relating to the Domestic Violence Survivor 14
Resilience Loan Program and Guarantee Fund. 15
BY adding to 16
Article – Financial Institutions 17
Section 1–501 through 1–504 to be under the new subtitle “Subtitle 5. Domestic 18
Violence Survivor Resilience Loans” 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2021 Supplement) 21
BY repealing and reenacting, without amendments, 22
Article – State Finance and Procurement 23
Section 6–226(a)(2)(i) 24
Annotated Code of Maryland 25
(2021 Replacement Volume) 26
BY repealing and reenacting, with amendments, 27
Article – State Finance and Procurement 28 2 SENATE BILL 898
Section 6–226(a)(2)(ii)144. and 145. 1
Annotated Code of Maryland 2
(2021 Replacement Volume) 3
BY adding to 4
Article – State Finance and Procurement 5
Section 6–226(a)(2)(ii)146. 6
Annotated Code of Maryland 7
(2021 Replacement Volume) 8
BY adding to 9
Article – State Government 10
Section 7–401 through 7–410 to be under the new subtitle “Subtitle 4. Domestic 11
Violence Survivor Resilience Loan Program and Guarantee Fund” 12
Annotated Code of Maryland 13
(2021 Replacement Volume) 14
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 15
That the Laws of Maryland read as follows: 16
Article – Financial Institutions 17
SUBTITLE 5. DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOANS. 18
1–501. 19
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANING S 20
INDICATED. 21
(B) “DOMESTIC VIOLENCE ” HAS THE MEANING STATED I N § 7–401 OF THE 22
STATE GOVERNMENT ARTICLE. 23
(C) “DOMESTIC VIOLENCE SUR VIVOR RESILIENCE LOAN” MEANS A LOAN 24
ISSUED SUBJECT TO TH E REQUIREMENTS OF TH IS SUBTITLE. 25
(D) “FUND” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 26
LOAN GUARANTEE FUND UNDER TITLE 7, SUBTITLE 4 OF THE STATE GOVERNMENT 27
ARTICLE. 28
(E) “PROGRAM” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 29
LOAN PROGRAM UNDER TITLE 7, SUBTITLE 4 OF THE STATE GOVERNMENT 30
ARTICLE. 31
(F) “PROGRAM PARTICIPANT ” HAS THE MEANING STAT ED IN § 7–401 OF 32
THE STATE GOVERNMENT ARTICLE. 33 SENATE BILL 898 3
1–502. 1
(A) A FINANCIAL INSTITUTION SHALL ESTABLISH A PROCESS TO CLASSIFY 2
A LOAN ISSUED TO A PROGRAM PARTICIPANT AS A DOMESTIC VIOLENCE SUR VIVOR 3
RESILIENCE LOAN. 4
(B) (1) SUBJECT TO THE UNDERWRITING REQU IREMENTS OF THE 5
FINANCIAL INSTITUTIO N AND REGULATIONS ADOP TED BY THE COMMISSIONER , A 6
PROGRAM PARTICIPANT MAY APPLY FOR A DOMESTIC VIOLENCE SURVIVOR 7
RESILIENCE LOAN. 8
(2) A FINANCIAL INSTITUTIO N SHALL VERIFY AN IN DIVIDUAL’S 9
STATUS AS A PROGRAM PARTICIPANT W ITH THE SECRETARY OF STATE. 10
(3) WHEN EVALUATING AN AP PLICATION FOR A DOME STIC VIOLENCE 11
SURVIVOR RESILIENCE LOAN, A FINANCIAL INSTITUT ION SHALL: 12
(I) EVALUATE THE APPLICAT ION IN A HOLISTIC FA SHION; AND 13
(II) WITHOUT REQUIRING A PROGRAM PARTICIPANT TO 14
DISCLOSE INFORMATION ABOUT THE PROGRAM PARTICIPANT ’S PERSONAL 15
HISTORY WITH DOMESTI C VIOLENCE, GENERALLY C ONSIDER: 16
1. THE DYNAMICS OF DOMES TIC VIOLENCE AND 17
FINANCIAL ABUSE ; AND 18
2. THE IMPACT OF DOMESTI C VIOLENCE ON THE 19
FINANCIAL QUALIFICAT IONS OF LOAN APPLICANT S, INCLUDING THE IMPACT ON 20
CREDIT AND EMPLOYMENT HISTO RY. 21
(C) THE RATE OF INTEREST THAT MAY BE CHARGED TO A PROGRAM 22
PARTICIPANT MAY NOT EXCEED 2% ABOVE THE AVERAGE INTEREST RATE FOR THE 23
TYPE OF LOAN APPLIED FOR AT THE TIME OF APPLICATION . 24
(D) ON OR AFTER JULY 1, 2023, A FINANCIAL INSTITUTIO N THAT ISSUES A 25
DOMESTIC VIOLENCE SU RVIVOR RESILIENCE LOAN TO A PROGRAM PARTICIPANT 26
MAY APPLY TO THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE FUND FOR A 27
LOAN GUARANTEE . 28
1–503. 29
(A) (1) THE COMMISSIONER SHALL DE VELOP TRAINING MATER IALS FOR 30 4 SENATE BILL 898
FINANCIAL INSTITUTIO NS ON THE DYNAMICS O F DOMESTIC VIOLENCE AND 1
FINANCIAL ABUSE . 2
(2) THE TRAINING MATERIAL S DEVELOPED UNDER TH IS SUBSECTION 3
SHALL INCLUDE I NFORMATION ON THE IM PACTS OF DOMESTIC VIOLEN CE ON AN 4
INDIVIDUAL’S EMPLOYMENT AND CRE DIT HISTORY. 5
(B) A FINANCIAL INSTITUTION THAT EMPLOYS LOAN OF FICERS SHALL 6
IMPLEMENT A TRAINING PROGRAM FOR LOAN OFF ICERS ON THE DYNAMIC S OF 7
DOMESTIC VIOLENCE AN D FINANCIAL ABUSE , INCORPORATING THE TRAINING 8
MATERIALS DEVELOPED BY THE COMMISSIONER . 9
1–504. 10
THE COMMISSIONER , IN COORDINATION WITH THE SECRETARY OF STATE, 11
SHALL ADOPT REGULATI ONS TO CARRY OUT THIS SUBTITLE . 12
Article – State Finance and Procurement 13
6–226. 14
(a) (2) (i) Notwithstanding any other provision of law, and unless 15
inconsistent with a federal law, grant agreement, or other federal requirement or with the 16
terms of a gift or settlement agreement, net interest on all State money allocated by the 17
State Treasurer under this section to special funds or accounts, and otherwise entitled to 18
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 19
Fund of the State. 20
(ii) The provisions of subparagraph (i) of this paragraph do not apply 21
to the following funds: 22
144. the Health Equity Resource Community Reserve Fund; 23
[and] 24
145. the Access to Counsel in Evictions Special Fund; AND 25
146. THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 26
LOAN GUARANTEE FUND. 27
Article – State Government 28
SUBTITLE 4. DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN PROGRAM AND 29
GUARANTEE FUND. 30
7–401. 31 SENATE BILL 898 5
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(B) “DOMESTIC VIOLENCE ” MEANS A PATTERN OF BEHAVIO R INVOLVING 3
THE USE OR ATTEMPTED USE OF PHYSICAL , SEXUAL, VERBAL, PSYCHOLOGICAL , 4
EMOTIONAL, ECONOMIC, FINANCIAL, OR TECHNOLOGICAL ABU SE OR ANY OTHER 5
COERCIVE BEHAVIOR CO MMITTED, ENABLED, OR SOLICITED TO GAIN OR MAINTAIN 6
POWER AND CONTROL OV ER A VICTIM BY AN INDIVIDUAL WHO: 7
(1) IS A CURRENT OR FORM ER SPOUSE OR DATING PARTN ER OF THE 8
VICTIM, OR ANOTHER INDIVIDUAL SIMILARLY SITUATED T O A SPOUSE OF THE 9
VICTIM; 10
(2) IS COHABITATING WITH OR HAS COHABITATED W ITH THE VICTIM 11
AS A SPOUSE OR DATIN G PARTNER; 12
(3) SHARES A CHILD IN CO MMON WITH THE VICTIM ; 13
(4) IS AN ADULT FAMILY M EMBER OF, OR A PAID OR NONPAID 14
CAREGIVER IN AN ONGO ING RELATIONSHIP OF TRUST WITH, A VICTIM AT LEAST 50 15
YEARS OLD OR AN ADULT VICT IM WITH DISABILITIES ; OR 16
(5) COMMITS ACTS AGAINST A YOUTH OR ADULT VIC TIM WHO IS 17
PROTECTED FROM THOSE ACTS UNDER ANY FAMILY OR DOMESTIC V IOLENCE LAW. 18
(C) “FUND” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 19
LOAN GUARANTEE FUND. 20
(D) “PROGRAM” MEANS THE DOMESTIC VIOLENCE SURVIVOR RESILIENCE 21
LOAN PROGRAM. 22
(E) “PROGRAM PARTICIPANT ” MEANS AN INDIVIDUAL DESIGNATED AS A 23
PROGRAM PARTICIPANT U NDER THIS SUBTITLE . 24
7–402. 25
THE PURPOSE OF THE PROGRAM IS TO: 26
(1) ESTABLISH AN INDIVID UAL’S ELIGIBILITY TO APP LY FOR A LOAN 27
ISSUED BY A FINANCIA L INSTITUTION UNDER TITLE 1, SUBTITLE 5 OF THE 28
FINANCIAL INSTITUTIONS ARTICLE; AND 29
6 SENATE BILL 898
(2) PROVIDE LOAN GUARANT EES. 1
7–403. 2
THE SECRETARY OF STATE SHALL ESTABLISH AND ADMINISTER THE 3
DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN PROGRAM FOR SURVIVORS OF 4
DOMESTIC VIOLENCE . 5
7–404. 6
(A) ON OR AFTER JULY 1, 2023, AN INDIVIDUAL MAY APPLY TO 7
PARTICIPATE IN THE PROGRAM. 8
(B) AN APPLICATION TO PARTICIPATE IN THE PROGRAM SHALL BE IN T HE 9
FORM REQUIRED BY THE SECRETARY OF STATE AND SHALL CONTA IN: 10
(1) A STATEMENT THAT : 11
(I) THE APPLICANT IS A S URVIVOR OF DOMESTIC VIOLENCE ; 12
AND 13
(II) THE APPLICANT HAS STRUGGLED TO ACH IEVE FINANCIAL 14
SECURITY; 15
(2) EVIDENCE THAT THE AP PLICANT IS ELIGIBLE FOR PROGRAM 16
PARTICIPATION , INCLUDING: 17
(I) CERTIFIED LAW ENFORC EMENT, COURT, OR OTHER 18
FEDERAL OR STATE AGENCY RECORDS OR FILES; 19
(II) DOCUMENTATION FROM A DOMESTIC VIOLENCE 20
PREVENTION OR ASSISTANCE PROGRAM ; 21
(III) DOCUMENTATION FROM A RELIGIOUS, MEDICAL, OR OTHER 22
PROFESSIONAL FROM WH OM THE APPLICANT HAS SOUGHT ASSISTANCE OR 23
TREATMENT AS A SURVI VOR OF DOMESTIC VIOL ENCE; OR 24
(IV) A STATEMENT FROM THE APPLICANT ABOUT THE 25
APPLICANT’S EXPERIENCE WITH DOMESTI C VIOLENCE; 26
(3) A STATEMENT ABOUT THE DIFFICULTI ES THE APPLICANT HAS 27
FACED IN ACHIEVING FINANCIAL STABILITY; 28
SENATE BILL 898 7
(4) THE MAILING ADDRESS , E–MAIL ADDRESS , AND TELEPHONE 1
NUMBER WHERE THE APPLICANT MAY BE CONTACTED BY THE SECRETARY OF 2
STATE; 3
(5) A SWORN STATEMENT BY THE APPLICANT THAT , TO THE BEST OF 4
THE APPLICANT ’S KNOWLEDGE , ALL THE INFORMATION CONTAINED IN THE 5
APPLICATION IS TRUE ; 6
(6) THE SIGNATURE OF THE APPLICANT AND THE DA TE WHEN THE 7
APPLICANT SIGNED THE APPLICATION; 8
(7) A VOLUNTARY RELEASE AND WAIVER OF ALL FU TURE CLAIMS 9
AGAINST THE STATE THAT MAY ARISE FROM PARTICIPATION I N THE PROGRAM 10
EXCEPT FOR A CLAIM B ASED ON GROSS NEGLIG ENCE; AND 11
(8) ANY OTHER RELEVANT INFORMATION THAT THE SECRETARY MAY 12
REQUIRE. 13
(C) ON THE FILING OF A PR OPERLY COMPLETED APP LICATION AND 14
RELEASE, THE SECRETARY OF STATE SHALL: 15
(1) REVIEW THE APPLICATI ON AND RELEASE ; AND 16
(2) IF THE APPLICATION A ND RELEASE ARE PROPE RLY COMPLETED 17
AND ACCURATE, DESIGNATE THE APPLIC ANT AS A PROGRAM PARTICIPANT . 18
7–405. 19
(A) IF AN APPLICANT FALSE LY ATTESTS TO ANY INFORMATION IN THE 20
APPLICATION OR KNOWI NGLY PROVIDES FALSE INFORMATION WHEN APP LYING FOR 21
PARTICIPATION IN THE PROGRAM, THE APPLICANT SHALL NO LONGER BE ALLOWED 22
TO PARTICIPATE IN TH E PROGRAM. 23
(B) A PERSON MAY NOT KNOWI NGLY MAKE A FALSE AT TESTATION OR 24
KNOWINGLY PROVIDE FA LSE INFORMATION IN A N APPLICATION. 25
(C) A PERSON WHO VIOLATES SUBSECTION (B) OF THIS SECTION IS G UILTY 26
OF A MISDEMEANOR AND ON CONVICTION IS SUBJEC T TO IMPRISONMENT NO T 27
EXCEEDING 6 MONTHS OR A FINE NOT EXCEEDING $500 OR BOTH. 28
7–406. 29
(A) ONCE AN APPLICATION I S APPROVED, A PROGRAM PARTICIPANT M AY 30 8 SENATE BILL 898
CONTACT A FINANCIAL INSTITUTION TO APPLY FOR A LOAN UNDER TITLE 1, 1
SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE. 2
(B) THE SECRETARY OF STATE SHALL PROVIDE A PROGRAM PARTICIPANT 3
WITH THE OPPORTUNITY TO PARTICIPATE IN FI NANCIAL LITERACY PRO GRAMMING. 4
7–407. 5
(A) A FINANCIAL INSTITUTIO N THAT IS SEEKING TO ISSUE A LOAN TO A 6
PROGRAM PART ICIPANT UNDER TITLE 1, SUBTITLE 5 OF THE FINANCIAL 7
INSTITUTIONS ARTICLE MAY APPLY TO THE SECRETARY OF STATE FOR A LOAN 8
GUARANTEE . 9
(B) SUBJECT TO THE AVAILA BILITY OF FUNDS, THE SECRETARY OF STATE 10
MAY ISSUE A LOAN GUA RANTEE TO A FINANCIA L INSTITUTION ON BEHALF OF A 11
PROGRAM PARTICIPANT I F THE FINANCIAL INSTITUTION COMPLIES WITH THE 12
REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS 13
ARTICLE. 14
(C) A LOAN GUARANTEE UNDER THIS SUBTITLE MAY NO T EXCEED $15,000 15
TO A SINGLE PROGRAM PARTICIPANT . 16
7–408. 17
(A) THERE IS A DOMESTIC VIOLENCE SURVIVOR RESILIENCE LOAN 18
GUARANTEE FUND. 19
(B) THE PURPOSE OF THE FUND IS TO PROVIDE LOAN GUAR ANTEES FOR 20
PROGRAM PARTICIPANTS WHO APPLY FOR AN D RECEIVE LOANS UNDER TITLE 1, 21
SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE. 22
(C) THE SECRETARY OF STATE SHALL ADMINISTER THE FUND. 23
(D) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 24
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 25
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 26
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 27
(E) THE FUND CONSISTS OF : 28
(1) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 29
SENATE BILL 898 9
(2) INTEREST EARNINGS; AND 1
(3) ANY OTHER MONEY FROM ANY OTHER SOURCE ACCEPTED FOR 2
THE BENEFIT OF THE FUND. 3
(F) THE FUND MAY BE USED ONLY TO: 4
(1) PROVIDE GUARANTEES FOR LOANS ISSUED UNDER TITLE 1, 5
SUBTITLE 5 OF THE FINANCIAL INSTITUTIONS ARTICLE; AND 6
(2) ADMINISTER THE FUND. 7
(G) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 8
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 9
(2) ANY INTEREST EARNING S OF THE FUND SHALL BE CREDITE D TO 10
THE FUND. 11
(H) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 12
WITH THE STATE BUDGET. 13
7–409. 14
IN FISCAL YEAR 2024, THE GOVERNOR SHALL INCLUD E IN THE ANNUAL 15
BUDGET BILL AN APPRO PRIATION OF $2,000,000 TO THE FUND. 16
7–410. 17
THE SECRETARY OF STATE, IN COORDINATION WITH THE COMMISSIONER OF 18
FINANCIAL REGULATION, SHALL ADOPT REGULATI ONS TO CARRY OUT THI S 19
SUBTITLE. 20
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 21
1, 2022. 22