MD
Maryland House Bill HB379

Maryland 2023 Regular Session

Maryland House Bill HB379 Compare Versions

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1- WES MOORE, Governor Ch. 28
21
3-– 1 –
4-Chapter 28
5-(House Bill 379)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *hb0379*
89
9-Commissioner of Financial Regulation – Name and Organization of Office
10+HOUSE BILL 379
11+I1 3lr1025
12+ CF SB 929
13+By: Delegate Jackson
14+Introduced and read first time: January 26, 2023
15+Assigned to: Economic Matters
16+Committee Report: Favorable
17+House action: Adopted
18+Read second time: February 26, 2023
1019
11-FOR the purpose of establishing the name of a certain office under the Commissioner of
12-Financial Regulation in the Maryland Department of Labor as the Office of Financial
13-Regulation; designating a certain appointee of the Commissioner of Financial
14-Regulation as the Deputy Commissioner for Depository Activities; requiring the
15-Commissioner of Financial Regulation to appoint a Deputy Commissioner for
16-Non–Depository Activities; and generally relating to the name and organization of
17-the office under the Commissioner of Financial Regulation in the Mary land
18-Department of Labor.
20+CHAPTER ______
1921
20-BY repealing and reenacting, with amendments,
21- Article – Business Regulation
22-Section 7–201
23- Annotated Code of Maryland
24- (2015 Replacement Volume and 2022 Supplement)
22+AN ACT concerning 1
2523
26-BY repealing and reenacting, without amendments,
27- Article – Financial Institutions
28-Section 1–101
29- Annotated Code of Maryland
30- (2020 Replacement Volume and 2022 Supplement)
24+Commissioner of Financial Regulation – Name and Organization of Office 2
3125
32-BY repealing and reenacting, with amendments,
33- Article – Financial Institutions
34-Section 2–101, 2–103, 2–110, 2–113(c), 2–119, 11–611, and 12–105.1(a)(5)
35- Annotated Code of Maryland
36- (2020 Replacement Volume and 2022 Supplement)
26+FOR the purpose of establishing the name of a certain office under the Commissioner of 3
27+Financial Regulation in the Maryland Department of Labor as the Office of Financial 4
28+Regulation; designating a certain appointee of the Commissioner of Financial 5
29+Regulation as the Deputy Commissioner for Depository Activities; requiring the 6
30+Commissioner of Financial Regulation to appoint a Deputy Commissioner for 7
31+Non–Depository Activities; and generally relating to the name and organization of 8
32+the office under the Commissioner of Financial Regulation in the Maryland 9
33+Department of Labor. 10
3734
38-BY repealing and reenacting, with amendments,
39- Article – Real Property
40-Section 7–105.14(i)(1)
41- Annotated Code of Maryland
42- (2015 Replacement Volume and 2022 Supplement)
35+BY repealing and reenacting, with amendments, 11
36+ Article – Business Regulation 12
37+Section 7–201 13
38+ Annotated Code of Maryland 14
39+ (2015 Replacement Volume and 2022 Supplement) 15
4340
44-BY repealing and reenacting, with amendments,
45- Article – State Government
46-Section 8–403(22)
47- Annotated Code of Maryland
48- (2021 Replacement Volume and 2022 Supplement)
49- Ch. 28 2023 LAWS OF MARYLAND
41+BY repealing and reenacting, without amendments, 16
42+ Article – Financial Institutions 17
43+Section 1–101 18
44+ Annotated Code of Maryland 19
45+ (2020 Replacement Volume and 2022 Supplement) 20
5046
51-– 2 –
52- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
53-That the Laws of Maryland read as follows:
47+BY repealing and reenacting, with amendments, 21
48+ Article – Financial Institutions 22 2 HOUSE BILL 379
5449
55-Article – Business Regulation
5650
57-7–201.
51+Section 2–101, 2–103, 2–110, 2–113(c), 2–119, 11–611, and 12–105.1(a)(5) 1
52+ Annotated Code of Maryland 2
53+ (2020 Replacement Volume and 2022 Supplement) 3
5854
59- There is a State Collection Agency Licensing Board in the Office of [the
60-Commissioner of] Financial Regulation in the Department.
55+BY repealing and reenacting, with amendments, 4
56+ Article – Real Property 5
57+Section 7–105.14(i)(1) 6
58+ Annotated Code of Maryland 7
59+ (2015 Replacement Volume and 2022 Supplement) 8
6160
62-Article – Financial Institutions
61+BY repealing and reenacting, with amendments, 9
62+ Article – State Government 10
63+Section 8–403(22) 11
64+ Annotated Code of Maryland 12
65+ (2021 Replacement Volume and 2022 Supplement) 13
6366
64-1–101.
67+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 14
68+That the Laws of Maryland read as follows: 15
6569
66- (a) In this article, unless the context clearly requires otherwise, the following
67-words have the meanings indicated.
70+Article – Business Regulation 16
6871
69- (b) “Address” means post office address, including, if applicable, street and
70-number, municipal area or county, state, and, if outside of the United States, country.
72+7–201. 17
7173
72- (c) “Any state” means:
74+ There is a State Collection Agency Licensing Board in the Office of [the 18
75+Commissioner of] Financial Regulation in the Department. 19
7376
74- (1) Any state, possession, or territory of the United States;
77+Article – Financial Institutions 20
7578
76- (2) The District of Columbia; or
79+1–101. 21
7780
78- (3) The Commonwealth of Puerto Rico.
81+ (a) In this article, unless the context clearly requires otherwise, the following 22
82+words have the meanings indicated. 23
7983
80- (d) “Banking institution” means an institution that is incorporated under the
81-laws of this State as a State bank, trust company, or savings bank.
84+ (b) “Address” means post office address, including, if applicable, street and 24
85+number, municipal area or county, state, and, if outside of the United States, country. 25
8286
83- (e) “Charter” has the meaning stated in § 1–101 of the Corporations and
84-Associations Article.
87+ (c) “Any state” means: 26
8588
86- (f) “Commercial bank” means an institution that is incorporated under the laws
87-of this State as a State bank or trust company.
89+ (1) Any state, possession, or territory of the United States; 27
8890
89- (g) “Commissioner” means the Commissioner of Financial Regulation in the
90-Maryland Department of Labor.
91+ (2) The District of Columbia; or 28
9192
92- (h) “County” means a county of this State and, unless otherwise indicated,
93-Baltimore City.
93+ (3) The Commonwealth of Puerto Rico. 29
9494
95- (i) “Credit union” means a credit union that is incorporated under the laws of this
96-State as a credit union.
97- WES MOORE, Governor Ch. 28
95+ (d) “Banking institution” means an institution that is incorporated under the 30
96+laws of this State as a State bank, trust company, or savings bank. 31
97+ HOUSE BILL 379 3
9898
99-– 3 –
100- (j) “Financial institution” means any financial institution of the type supervised
101-under this article, whether or not State–chartered.
10299
103- (k) (1) “Foreign bank” means any financial institution or other institution that
104-engages in banking activities that are usual in connection with the business of banking in
105-the nations in which the institution is organized or operates.
100+ (e) “Charter” has the meaning stated in § 1–101 of the Corporations and 1
101+Associations Article. 2
106102
107- (2) “Foreign bank” does not include a bank organized under the laws of any
108-state or a national banking association that has its headquarters in any state.
103+ (f) “Commercial bank” means an institution that is incorporated under the laws 3
104+of this State as a State bank or trust company. 4
109105
110- (l) “Includes” or “including” means includes or including by way of illustration
111-and not by way of limitation.
106+ (g) “Commissioner” means the Commissioner of Financial Regulation in the 5
107+Maryland Department of Labor. 6
112108
113- (m) “Mail” means to deposit in the United States mail, postage prepaid.
109+ (h) “County” means a county of this State and, unless otherwise indicated, 7
110+Baltimore City. 8
114111
115- (n) “Mortgage” includes a deed of trust that secures a debt or the performance of
116-an obligation.
112+ (i) “Credit union” means a credit union that is incorporated under the laws of this 9
113+State as a credit union. 10
117114
118- (o) “Municipal area” means a municipal corporation or an unincorporated city,
119-town, or village.
115+ (j) “Financial institution” means any financial institution of the type supervised 11
116+under this article, whether or not State–chartered. 12
120117
121- (p) “National banking association” means an institution that is incorporated
122-under federal law as a bank.
118+ (k) (1) “Foreign bank” means any financial institution or other institution that 13
119+engages in banking activities that are usual in connection with the business of banking in 14
120+the nations in which the institution is organized or operates. 15
123121
124- (q) “Nationwide Mortgage Licensing System and Registry” or “NMLS” means a
125-multistate uniform licensing system developed and maintained by the Conference of State
126-Bank Supervisors, or by a subsidiary or an affiliate of the Conference of State Bank
127-Supervisors, that may be used for the licensing and registration of persons required to be
128-licensed or registered under this article or the Commercial Law Article.
122+ (2) “Foreign bank” does not include a bank organized under the laws of any 16
123+state or a national banking association that has its headquarters in any state. 17
129124
130- (r) “Other–state bank” means a bank chartered and primarily regulated by
131-another state.
125+ (l) “Includes” or “including” means includes or including by way of illustration 18
126+and not by way of limitation. 19
132127
133- (s) “Other–state credit union” means a credit union chartered and primarily
134-regulated by another state.
128+ (m) “Mail” means to deposit in the United States mail, postage prepaid. 20
135129
136- (t) “Person” means an individual, receiver, trustee, guardian, personal
137-representative, fiduciary, or representative of any kind and any partnership, firm,
138-association, corporation, or other entity.
130+ (n) “Mortgage” includes a deed of trust that secures a debt or the performance of 21
131+an obligation. 22
139132
140- (u) “Political subdivision” means:
133+ (o) “Municipal area” means a municipal corporation or an unincorporated city, 23
134+town, or village. 24
141135
142- (1) A county or municipal corporation of this State; and
136+ (p) “National banking association” means an institution that is incorporated 25
137+under federal law as a bank. 26
143138
144- (2) Unless the context requires otherwise, a special taxing district of this
145-State. Ch. 28 2023 LAWS OF MARYLAND
139+ (q) “Nationwide Mortgage Licensing System and Registry” or “NMLS” means a 27
140+multistate uniform licensing system developed and maintained by the Conference of State 28
141+Bank Supervisors, or by a subsidiary or an affiliate of the Conference of State Bank 29
142+Supervisors, that may be used for the licensing and registration of persons required to be 30
143+licensed or registered under this article or the Commercial Law Article. 31
146144
147-– 4 –
145+ (r) “Other–state bank” means a bank chartered and primarily regulated by 32
146+another state. 33 4 HOUSE BILL 379
148147
149- (v) “Real property” includes any interest in real property.
150148
151-2–101.
152149
153- (A) There is a Commissioner of Financial Regulation in the Maryland Department
154-of Labor.
150+ (s) “Other–state credit union” means a credit union chartered and primarily 1
151+regulated by another state. 2
155152
156- (B) THERE IS AN OFFICE OF FINANCIAL REGULATION UNDER THE
157-COMMISSIONER IN THE MARYLAND DEPARTMENT OF LABOR.
153+ (t) “Person” means an individual, receiver, trustee, guardian, personal 3
154+representative, fiduciary, or representative of any kind and any partnership, firm, 4
155+association, corporation, or other entity. 5
158156
159- (C) THE COMMISSIONER IS THE H EAD OF THE OFFICE OF FINANCIAL
160-REGULATION.
157+ (u) “Political subdivision” means: 6
161158
162-2–103.
159+ (1) A county or municipal corporation of this State; and 7
163160
164- (a) With the approval of the Secretary of Labor, the Commissioner shall appoint
165-[a]:
161+ (2) Unless the context requires otherwise, a special taxing district of this 8
162+State. 9
166163
167- (1) A Deputy Commissioner FOR DEPOSITORY ACTIVITIES; AND
164+ (v) “Real property” includes any interest in real property. 10
168165
169- (2) A DEPUTY COMMISSIONER FOR NON–DEPOSITORY ACTIVITIES.
166+2–101. 11
170167
171- (b) The Deputy [Commissioner serves] COMMISSIONERS APPOINT ED UNDER
172-SUBSECTION (A) OF THIS SECTION SERVE at the pleasure of the Commissioner and [is
173-an employee] ARE EMPLOYEES of the Commissioner’s office.
168+ (A) There is a Commissioner of Financial Regulation in the Maryland Department 12
169+of Labor. 13
174170
175- (c) [The Deputy Commissioner shall have at least 5 years of experience in:]
171+ (B) THERE IS AN OFFICE OF FINANCIAL REGULATION UNDER THE 14
172+COMMISSIONER IN THE MARYLAND DEPARTMENT OF LABOR. 15
176173
177- (1) [State or national banking regulation or management; or] THE
178-DEPUTY COMMISSIONER FOR DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5
179-YEARS OF EXPERIENCE IN THE REGULATION OR MA NAGEMENT OF FINANCIA L
180-INSTITUTIONS.
174+ (C) THE COMMISSIONER IS THE H EAD OF THE OFFICE OF FINANCIAL 16
175+REGULATION. 17
181176
182- (2) [The regulation or management of the business of making loans by
183-persons of the type regulated by this article] THE DEPUTY COMMISSIONER FOR
184-NON–DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN
185-THE REGULATION OR MA NAGEMENT OF PERSONS REQUIRED TO BE LICEN SED OR
186-REGISTERED UNDER THI S ARTICLE OR THE COMMERCIAL LAW ARTICLE.
177+2–103. 18
187178
188- (d) The Deputy [Commissioner is] COMMISSIONERS APPOINTED UNDER
189-SUBSECTION (A) OF THIS SECTION ARE entitled to the salary provided in the State
190-budget.
191- WES MOORE, Governor Ch. 28
179+ (a) With the approval of the Secretary of Labor, the Commissioner shall appoint 19
180+[a]: 20
192181
193-– 5 –
194- (e) In addition to any other powers and duties set forth in this article[, the]:
182+ (1) A Deputy Commissioner FOR DEPOSITORY ACTIVITIES; AND 21
195183
196- (1) THE Deputy Commissioner FOR DEPOSITORY ACTIVITIES has the
197-powers and duties of the Commissioner:
184+ (2) A DEPUTY COMMISSIONER FOR NON–DEPOSITORY ACTIVITIES. 22
198185
199- [(1)] (I) To the extent delegated by the Commissioner;
186+ (b) The Deputy [Commissioner serves] COMMISSIONERS APPOINT ED UNDER 23
187+SUBSECTION (A) OF THIS SECTION SERVE at the pleasure of the Commissioner and [is 24
188+an employee] ARE EMPLOYEES of the Commissioner’s office. 25
200189
201- [(2)] (II) If the office of the Commissioner is vacant; and
190+ (c) [The Deputy Commissioner shall have at least 5 years of experience in:] 26
202191
203- [(3)] (III) If for any reason the Commissioner is unable to perform the
204-duties of the office; AND
192+ (1) [State or national banking regulation or management; or] THE 27
193+DEPUTY COMMISSIONER FOR DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 28
194+YEARS OF EXPERIENCE IN THE REGULATION OR MA NAGEMENT OF FINANCIA L 29 HOUSE BILL 379 5
205195
206- (2) THE DEPUTY COMMISSIONER FOR NON–DEPOSITORY
207-ACTIVITIES HAS THE POWERS AND D UTIES OF THE COMMISSIONER TO THE E XTENT
208-DELEGATED BY THE COMMISSIONER .
209196
210-2–110.
197+INSTITUTIONS. 1
211198
212- (a) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS
213-APPOINTED UNDER § 2–103 OF THIS SUBTITLE shall devote full time to their duties.
199+ (2) [The regulation or management of the business of making loans by 2
200+persons of the type regulated by this article] THE DEPUTY COMMISSIONER FOR 3
201+NON–DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN 4
202+THE REGULATION OR MA NAGEMENT OF PERSONS REQUIRED TO BE LICEN SED OR 5
203+REGISTERED UNDER THI S ARTICLE OR THE COMMERCIAL LAW ARTICLE. 6
214204
215- (b) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS
216-APPOINTED UNDER § 2–103 OF THIS SUBTITLE may not:
205+ (d) The Deputy [Commissioner is] COMMISSIONERS APPOINTED UNDER 7
206+SUBSECTION (A) OF THIS SECTION ARE entitled to the salary provided in the State 8
207+budget. 9
217208
218- (1) Be an officer or director of any State banking institution or national
219-banking association, or in any entity engaged in the business of making loans; or
209+ (e) In addition to any other powers and duties set forth in this article[, the]: 10
220210
221- (2) Engage in any other business relating to banks and financial
222-institutions or lending.
211+ (1) THE Deputy Commissioner FOR DEPOSITORY ACTIVITIES has the 11
212+powers and duties of the Commissioner: 12
223213
224-2–113.
214+ [(1)] (I) To the extent delegated by the Commissioner; 13
225215
226- (c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include
227-in the annual budget bill an appropriation to the [Division] OFFICE of Financial
228-Regulation funding the positions necessary to implement the investigative and enforcement
229-powers authorized under this subtitle.
216+ [(2)] (II) If the office of the Commissioner is vacant; and 14
230217
231-2–119.
218+ [(3)] (III) If for any reason the Commissioner is unable to perform the 15
219+duties of the office; AND 16
232220
233- For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the
234-annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for
235-the purpose of regulating banking institutions and credit unions.
221+ (2) THE DEPUTY COMMISSIONER FOR NON–DEPOSITORY 17
222+ACTIVITIES HAS THE POWERS AND D UTIES OF THE COMMISSIONER TO THE E XTENT 18
223+DELEGATED BY THE COMMISSIONER . 19
236224
237-11–611.
238- Ch. 28 2023 LAWS OF MARYLAND
225+2–110. 20
239226
240-– 6 –
241- For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the
242-annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for
243-the purpose of creating necessary positions to [implement the provisions of] CARRY OUT
244-this subtitle.
227+ (a) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 21
228+APPOINTED UNDER § 2–103 OF THIS SUBTITLE shall devote full time to their duties. 22
245229
246-12–105.1.
230+ (b) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 23
231+APPOINTED UNDER § 2–103 OF THIS SUBTITLE may not: 24
247232
248- (a) A person may provide check cashing services without obtaining a license
249-under this subtitle by registering each year with the Commissioner under this section if
250-the person:
233+ (1) Be an officer or director of any State banking institution or national 25
234+banking association, or in any entity engaged in the business of making loans; or 26
251235
252- (5) Has conspicuously posted a notice with the following information, in 48
253-point type or larger, at each business location at which the person provides check cashing
254-services:
236+ (2) Engage in any other business relating to banks and financial 27
237+institutions or lending. 28
255238
256- (i) The fees charged for check cashing services; and
239+2–113. 29
257240
258- (ii) How to contact the Office of [the Commissioner of] Financial
259-Regulation with comments or complaints; and
241+ (c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include 30 6 HOUSE BILL 379
260242
261-Article – Real Property
262243
263-7–105.14.
244+in the annual budget bill an appropriation to the [Division] OFFICE of Financial 1
245+Regulation funding the positions necessary to implement the investigative and enforcement 2
246+powers authorized under this subtitle. 3
264247
265- (i) (1) There is a Foreclosed Property Registry Fund in the Office of [the
266-Commissioner of] Financial Regulation.
248+2–119. 4
267249
268-Article – State Government
250+ For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the 5
251+annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 6
252+the purpose of regulating banking institutions and credit unions. 7
269253
270-8–403.
254+11–611. 8
271255
272- This subtitle applies only to the following governmental activities and units:
256+ For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the 9
257+annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 10
258+the purpose of creating necessary positions to [implement the provisions of] CARRY OUT 11
259+this subtitle. 12
273260
274- (22) Financial Regulation, Office of [the Commissioner of] (§ 2–101 of the
275-Financial Institutions Article);
261+12–105.1. 13
276262
277- SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General
278-Assembly that any changes under Section 1 of this Act to § 2–101 of the Financial
279-Institutions Article or other statutory provisions referencing the name of the office
280-established under the Commissioner of Financial Regulation in the Maryland Department
281-of Labor shall be construed as a nonsubstantive revision that does not affect the powers
282-and duties of the Commissioner or the office.
263+ (a) A person may provide check cashing services without obtaining a license 14
264+under this subtitle by registering each year with the Commissioner under this section if 15
265+the person: 16
283266
284- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
285-1, 2023.
286- WES MOORE, Governor Ch. 28
267+ (5) Has conspicuously posted a notice with the following information, in 48 17
268+point type or larger, at each business location at which the person provides check cashing 18
269+services: 19
287270
288-– 7 –
289-Approved by the Governor, April 11, 2023.
271+ (i) The fees charged for check cashing services; and 20
272+
273+ (ii) How to contact the Office of [the Commissioner of] Financial 21
274+Regulation with comments or complaints; and 22
275+
276+Article – Real Property 23
277+
278+7–105.14. 24
279+
280+ (i) (1) There is a Foreclosed Property Registry Fund in the Office of [the 25
281+Commissioner of] Financial Regulation. 26
282+
283+Article – State Government 27
284+
285+8–403. 28
286+
287+ This subtitle applies only to the following governmental activities and units: 29
288+
289+ (22) Financial Regulation, Office of [the Commissioner of] (§ 2–101 of the 30 HOUSE BILL 379 7
290+
291+
292+Financial Institutions Article); 1
293+
294+ SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 2
295+Assembly that any changes under Section 1 of this Act to § 2–101 of the Financial 3
296+Institutions Article or other statutory provisions referencing the name of the office 4
297+established under the Commissioner of Financial Regulation in the Maryland Department 5
298+of Labor shall be construed as a nonsubstantive revision that does not affect the powers 6
299+and duties of the Commissioner or the office. 7
300+
301+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 8
302+1, 2023. 9
303+
304+
305+
306+Approved:
307+________________________________________________________________________________
308+ Governor.
309+________________________________________________________________________________
310+ Speaker of the House of Delegates.
311+________________________________________________________________________________
312+ President of the Senate.