Maryland 2023 Regular Session

Maryland House Bill HB392 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1
2	2
3	3	EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4	4	[Brackets] indicate matter deleted from existing law.
5	5	hb0392
6	6
7	7	HOUSE BILL 392
8	8	I1, C8 3lr0711
9	9	CF 3lr0712
10	10	By: Delegate Wells
11	11	Introduced and read first time: January 26, 2023
12	12	Assigned to: Economic Matters
13	13
14	14	A BILL ENTITLED
15	15
16	16	AN ACT concerning 1
17	17
18	18	Financial Institutions – Maryland Community Reinvestment Act 2
19	19
20	20	FOR the purpose of requiring the Commissioner of Financial Regulation to examine and 3
21	21	prepare a written evaluation of the record of certain regulated financial institutions 4
22	22	in meeting the financial needs of certain communities; requiring the Commissioner 5
23	23	to give a certain regulated financial institution a certain rating based on a certain 6
24	24	examination and to prepare a written evaluation; requiring a certain regulated 7
25	25	financial institution to prepare a certain improvement plan under certain 8
26	26	circumstances; requiring the Commissioner to take certain matters into account 9
27	27	when evaluating certain applications of a regulated financial institution; and 10
28	28	generally relating to financial institutions and community investment. 11
29	29
30	30	BY repealing and reenacting, without amendments, 12
31	31	Article – Financial Institutions 13
32	32	Section 1–101(a), (d), (e), (g), and (i) 14
33	33	Annotated Code of Maryland 15
34	34	(2020 Replacement Volume and 2022 Supplement) 16
35	35
36	36	BY adding to 17
37	37	Article – Financial Institutions 18
38	38	Section 1–501 through 1–509 to be under the new subtitle “Subtitle 5. Maryland 19
39	39	Community Reinvestment Act” 20
40	40	Annotated Code of Maryland 21
41	41	(2020 Replacement Volume and 2022 Supplement) 22
42	42
43	43	SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
44	44	That the Laws of Maryland read as follows: 24
45	45
46	46	Article – Financial Institutions 25
47	47
48	48	1–101. 26 2 HOUSE BILL 392
49	49
50	50
51	51
52	52	(a) In this article, unless the context clearly requires otherwise, the following 1
53	53	words have the meanings indicated. 2
54	54
55	55	(d) “Banking institution” means an institution that is incorporated under the 3
56	56	laws of this State as a State bank, trust company, or savings bank. 4
57	57
58	58	(e) “Charter” has the meaning stated in § 1–101 of the Corporations and 5
59	59	Associations Article. 6
60	60
61	61	(g) “Commissioner” means the Commissioner of Financial Regulation in the 7
62	62	Maryland Department of Labor. 8
63	63
64	64	(i) “Credit union” means a credit union that is incorporated under the laws of this 9
65	65	State as a credit union. 10
66	66
67	67	SUBTITLE 5. MARYLAND COMMUNITY REINVESTMENT ACT. 11
68	68
69	69	1–501. 12
70	70
71	71	(A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS 13
72	72	INDICATED. 14
73	73
74	74	(B) “APPLICATION FOR A DEP OSIT FACILITY OR LIC ENSE” MEANS AN 15
75	75	APPLICATION TO THE COMMISSIONER FOR : 16
76	76
77	77	(1) A CHARTER FOR A BANKING INSTITUTION OR A CREDIT UNION; 17
78	78
79	79	(2) THE ESTABLISHMENT OF A DOMESTIC BRANCH OR OTHER 18
80	80	FACILITY WITH THE AB ILITY TO ACCEPT DEPO SITS FOR A REGULATED FINANCIAL 19
81	81	INSTITUTION; 20
82	82
83	83	(3) THE RELOCATION OF THE HOME OFFICE OR A BRA NCH OFFICE OF 21
84	84	A REGULATED FINANCIA L INSTITUTION; 22
85	85
86	86	(4) THE MERGER OR CONSOLI DATION WITH, THE ACQUISITION OF 23
87	87	THE ASSETS OF, OR THE ASSUMPTION OF THE LIABILITIES OF A REGULATED 24
88	88	FINANCIAL INSTITUTIO N; 25
89	89
90	90	(5) THE ACQUISITION OF SH ARES IN, OR THE ASSETS OF , A 26
91	91	REGULATED FINANCIAL INSTITUTION; OR 27
92	92
93	93	(6) AN INITIAL OR RENEWAL LICENSE TO MAKE LOAN S OR OFFER 28
94	94	OTHER FINANCIAL SERV ICES. 29
95	95	HOUSE BILL 392 3
96	96
97	97
98	98	(C) “ASSESSMENT AREA ” MEANS: 1
99	99
100	100	(1) FOR A REGULATED FINAN CIAL INSTITUTION OTH ER THAN A 2
101	101	CREDIT UNION: 3
102	102
103	103	(I) AN AREA WHERE THE REGULATED FINANCIAL INSTITUTION: 4
104	104
105	105	1. MAINTAINS DEPOSIT –TAKING BRANCHES, 5
106	106	AUTOMATED TELLER MAC HINES, OR RETAIL OFFICES ; AND 6
107	107
108	108	2. IS REPRESENTED BY AN AGENT; OR 7
109	109
110	110	(II) FOR AN AREA THAT DOES NO T HAVE DEPOSIT–TAKING 8
111	111	BRANCHES, AUTOMATED TELLER MAC HINES, RETAIL OFFICES, OR AGENTS, AN AREA 9
112	112	WHERE THE REGULATED FINANCIAL INSTITUTION ISSUES A SIGNIFICANT NUMBER 10
113	113	OF LOANS OR OTHER PR ODUCTS, INCLUDING DEPOSITS , RELATIVE TO THE TOTA L 11
114	114	NUMBER OF LOANS OR O THER PRODUCTS MADE B Y THE REGULATED FINANCIAL 12
115	115	INSTITUTION OR RELATIVE TO THE T OTAL NUMBER OF LOANS OR OTHER PRODUCTS 13
116	116	OFFERED BY THE PRIVA TE SECTOR MARKET ; OR 14
117	117
118	118	(2) FOR A CREDIT UNION , THE COMMON BOND OR FI ELD OF 15
119	119	MEMBERSHIP FOR A CRE DIT UNION. 16
120	120
121	121	(D) (1) “COMMUNITY” MEANS INDIVIDUALS OR GROUPS OF INDIVIDUALS 17
122	122	LOCATED IN THE ASSESSMENT AREA OF A REGULATED FINANCIA L INSTITUTION. 18
123	123
124	124	(2) “COMMUNITY” INCLUDES: 19
125	125
126	126	(I) LOW– AND MODERATE –INCOME INDIVIDUALS A ND 20
127	127	NEIGHBORHOODS ; AND 21
128	128
129	129	(II) OTHER DISTRESSED OR U NDERSERVED AREAS AND 22
130	130	POPULATIONS . 23
131	131
132	132	(E) “COMMUNITY BENEFITS PL AN” MEANS A PLAN CREATED BY A 24
133	133	REGULATED FINANCIAL INSTITUTION THAT PROVIDES MEASUR ABLE GOALS FOR 25
134	134	FUTURE AMOUNTS OF SA FE AND SOUND LOANS , INVESTMENTS , SERVICES, AND 26
135	135	OTHER FINANCIAL PROD UCTS FOR LOW – AND MODERATE –INCOME COMMUNITIES 27
136	136	AND OTHER DISTRESSED OR UNDERSERVED COMMU NITIES. 28
137	137
138	138	(F) “COMMUNITY DEVELOPMENT ” INCLUDES: 29
139	139	4 HOUSE BILL 392
140	140
141	141
142	142	(1) AFFORDABLE HOUSING FO R LOW– OR MODERATE –INCOME 1
143	143	INDIVIDUALS; 2
144	144
145	145	(2) AVOIDANCE OF PATTERNS OF LENDING RESULTING IN THE LOSS 3
146	146	OF AFFORDABLE HOUSIN G UNITS; 4
147	147
148	148	(3) COMMUNITY DEVELOPMENT SERVICES, INCLUDING FINANCIAL 5
149	149	COUNSELING AND SUCCE SSFUL MORTGAGE OR LO AN MODIFICATIONS OF 6
150	150	DELINQUENT LOANS ; 7
151	151
152	152	(4) ACTIVITIES THAT PROMO TE ECONOMIC DEVELOPM ENT BY 8
153	153	FINANCING SMALL BUSI NESSES OR FARMS , WITH AN EMPHASIS ON SMALL 9
154	154	BUSINESSES OR FARMS THAT HAVE GROSS ANNU AL REVENUES OF NOT M ORE THAN 10
155	155	$1,000,000; AND 11
156	156
157	157	(5) ACTIVITIES THAT REVIT ALIZE OR STABILIZE : 12
158	158
159	159	(I) LOW– OR MODERATE –INCOME CENSUS TRACTS ; 13
160	160
161	161	(II) DESIGNATED DISASTER A REAS; 14
162	162
163	163	(III) OTHER DISTRESSED OR UNDERSERVED COMMUNIT IES; 15
164	164
165	165	(IV) COMMUNITIES CONSISTIN G DISPROPORTIONATELY OF 16
166	166	OTHER UNDERSERVED PO PULATIONS; OR 17
167	167
168	168	(V) DISTRESSED OR UNDERSE RVED NONMETROPOLITAN 18
169	169	MIDDLE–INCOME CENSUS TRACTS OR OTHER CENSUS TRACTS DESIGNATED BY THE 19
170	170	FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL. 20
171	171
172	172	(G) “DEPOSITORY INSTITUTIO N” HAS THE MEANING STAT ED IN THE 21
173	173	FEDERAL DEPOSIT INSURANCE ACT, 12 U.S.C. § 1813(C). 22
174	174
175	175	(H) “FEDERAL FINANCIAL SUP ERVISORY AGENCY” MEANS: 23
176	176
177	177	(1) THE FEDERAL DEPOSIT INSTITUTION CORPORATION ; 24
178	178
179	179	(2) THE FEDERAL RESERVE BOARD; OR 25
180	180
181	181	(3) THE CONSUMER FINANCIAL PROTECTION BUREAU. 26
182	182
183	183	(I) “OTHER DISTRESSED OR U NDERSERVED AREA” MEANS A CENSUS TRACT 27
184	184	OR ANOTHER AREA THAT, ACCORDING TO A PERIO DIC REVIEW AND DATA ANALYSIS 28 HOUSE BILL 392 5
185	185
186	186
187	187	BY THE COMMISSIONER OR THE APPROPRIATE FEDERAL FINANCIAL SU PERVISORY 1
188	188	AGENCY ON AN INTERAGENCY BA SIS THROUGH THE FEDERAL FINANCIAL 2
189	189	INSTITUTIONS EXAMINATION COUNCIL, IS EXPERIENCING ECON OMIC HARDSHIP OR 3
190	190	IS UNDERSERVED BY FI NANCIAL INSTITUTIONS . 4
191	191
192	192	(J) “OTHER UNDERSERVED POP ULATION” MEANS A POPULATION THAT 5
193	193	EXPERIENCES ONGOING EFFECTS OF D ISCRIMINATION OR IS RELATIVELY 6
194	194	UNDERSERVED BY FINAN CIAL INSTITUTIONS AS MEASURED BY LOANS PE R CAPITA 7
195	195	OR OTHER SIMILAR MET RICS. 8
196	196
197	197	(K) “REGULATED FINANCIAL I NSTITUTION” MEANS: 9
198	198
199	199	(1) A BANKING INSTITUTION A S DEFINED IN § 1–101 OF THIS TITLE; 10
200	200
201	201	(2) A CREDIT UNION AS DEFIN ED IN § 1–101 OF THIS TITLE; OR 11
202	202
203	203	(3) A NONDEPOSITORY MORTGAG E COMPANY. 12
204	204
205	205	1–502. 13
206	206
207	207	(A) THE GENERAL ASSEMBLY FINDS THAT : 14
208	208
209	209	(1) A REGULATED FINANCIAL I NSTITUTION IS REQUIRED BY LAW TO 15
210	210	DEMONSTRATE THAT IT SERVES THE CONVENIENCE AND NEEDS OF THE 16
211	211	COMMUNITIES WHERE THE REGULATED FINANC IAL INSTITUTION IS CHARTERED TO 17
212	212	DO BUSINESS; 18
213	213
214	214	(2) THE CONVENIENCE AND N EEDS OF COMMUNITIES INCLUDE THE 19
215	215	AVAILABILITY OF CREDIT, DEPOSITORY SERVICES, AND OTHER FINANCIAL 20
216	216	PRODUCTS; AND 21
217	217
218	218	(3) A REGULATED FINANCIAL I NSTITUTION HAS AN AFFIRMATIVE 22
219	219	AND CONTINUING OBLIGATIO N TO SERVE THE NEEDS OF THE COM MUNITIES WHERE 23
220	220	THE REGULATED FINANC IAL INSTITUTION IS CHARTERED . 24
221	221
222	222	(B) THE PURPOSE OF THIS S UBTITLE IS TO REQUIRE T HE COMMISSIONER 25
223	223	TO ENCOURAGE REGULATED FINANCIAL INSTITUTIONS TO MEET THE FINANCIA L 26
224	224	NEEDS OF THE LOCAL C OMMUNITIES WHERE THE REGULATED FINANC IAL 27
225	225	INSTITUTIONS ARE CHARTERED CONSIS TENT WITH THE SAFE A ND SOUND 28
226	226	OPERATION OF THE REGULATED FINANCIAL INSTITUTIONS. 29
227	227
228	228	1–503. 30
229	229	6 HOUSE BILL 392
230	230
231	231
232	232	(A) (1) THE COMMISSIONER SHALL EX AMINE EACH REGULATED 1
233	233	FINANCIAL INSTITUTIO N TO ASSESS WHETHER TH E REGULATED FINANCIA L 2
234	234	INSTITUTION IS MEETI NG THE FINANCIAL NEE DS OF THE LOCAL COMM UNITIES 3
235	235	WHERE THE REGULATED FINANC IAL INSTITUTION IS C HARTED AT LEAST ONCE 4
236	236	EVERY 3 YEARS. 5
237	237
238	238	(2) THE COMMISSIONER SHALL : 6
239	239
240	240	(I) PUBLISH AN EXAMINATIO N SCHEDULE AT THE BE GINNING 7
241	241	OF EACH CALENDAR YEAR; 8
242	242
243	243	(II) UPDATE THE EXAMINATIO N SCHEDULE EACH QUAR TER; 9
244	244	AND 10
245	245
246	246	(III) SOLICIT AND CONSIDER PUBLIC COMMENT RELAT ED TO 11
247	247	THE COMPLIANCE OF A REGULATED FINANCIAL INSTITUTION WITH THI S SUBTITLE. 12
248	248
249	249	(B) WHEN EXAMINING A REGU LATED FINANCIAL INST ITUTION IN 13
250	250	ACCORDANCE WITH THIS SUBTITLE , THE COMMISSIONER SHALL ASSESS THE 14
251	251	RECORD OF THE REGULATED FINANCIAL INSTITUTION IN: 15
252	252
253	253	(1) PROVIDING ACCESS TO C REDIT, DEPOSITORY SERVICES , AND 16
254	254	OTHER FINANCIAL PROD UCTS TO MEMBERS OF THE CO MMUNITY WHERE THE 17
255	255	REGULATED FINANCIAL INSTITUTION IS CHARTERED , CONSISTENT WITH THE SAFE 18
256	256	AND SOUND OP ERATION OF THE REGULATED FINANC IAL INSTITUTION; AND 19
257	257
258	258	(2) PARTICIPATING IN THE FOLLOWING ACTIVI TIES: 20
259	259
260	260	(I) RETAIL LENDING , INCLUDING HOME LOANS, SMALL 21
261	261	BUSINESS LOANS, CONSUMER LOANS, AND OTHER LENDING AN D FINANCIAL 22
262	262	PRODUCTS; 23
263	263
264	264	(II) COMMUNITY DEVELOPMENT LENDING AND INVESTMENT ; 24
265	265
266	266	(III) PROVIDING G RANTS TO NONPROFIT O RGANIZATIONS 25
267	267	ENGAGED IN COMMUNITY DEVELOPMENT ; 26
268	268
269	269	(IV) PROVIDING RETAIL FINANCIAL SERV ICES, BRANCHES AND 27
270	270	OTHER SERVICE FACILI TIES, LOW–COST DEPOSIT ACCOUNT S, AND COMMUNITY 28
271	271	DEVELOPMENT SERVICES ; 29
272	272	HOUSE BILL 392 7
273	273
274	274
275	275	(V) OFFERING SAFE AND SOUND PRODU CTS, USING 1
276	276	DELINQUENCY RATES , DEFAULT RATES , REPAYMENT DATA, AND ANY OTHER 2
277	277	RELEVANT DATA; 3
278	278
279	279	(VI) WORKING WITH DELINQUENT BORR OWERS TO RESOLVE 4
280	280	DELINQUENCIES , INCLUDING TIMELY LOA N MODIFICATIONS; AND 5
281	281
282	282	(VII) PREVENTING DISPLACEMENT OF LOW – AND 6
283	283	MODERATE–INCOME POPULATIONS A ND WORKING TO PROMOTE INTEGRATI ON. 7
284	284
285	285	(C) THE COMMISSIONER MAY COND UCT THE EXAMINATIONS REQUIRED 8
286	286	UNDER THIS SECTION JOINTLY WITH THE APPROPRIATE FEDERAL FINANCIAL 9
287	287	SUPERVISORY AGENCY O R OTHER REGULATED FI NANCIAL INSTITUTIONS THAT ARE 10
288	288	OR MAY BE SUBJECT TO A FEDERAL COMMUNITY REINVESTMENT ACT 11
289	289	REQUIREMENT . 12
290	290
291	291	1–504. 13
292	292
293	293	(A) THE COMMISSIONER SHALL GIVE EACH REGULATED FINANCIAL 14
294	294	INSTITUTION ONE OF T HE FOLLOWING RATINGS BASED ON THE EXAMINATION 15
295	295	CONDUCTED IN ACCORDA NCE WITH § 1–503 OF THIS SUBTITLE: 16
296	296
297	297	(1) OUTSTANDING RECORD OF MEETING COMMUNITY NE EDS; 17
298	298
299	299	(2) SATISFACTORY RECORD O F MEETING COMMUNITY NEEDS; 18
300	300
301	301	(3) LOW SATISFACTORY RECO RD OF MEETING COMMUN ITY NEEDS; 19
302	302
303	303	(4) NEEDS TO IMPROVE RECORD OF ME ETING COMMUNITY NEED S; OR 20
304	304
305	305	(5) SUBSTANTIAL NONCOMPLI ANCE IN MEETING COMM UNITY NEEDS. 21
306	306
307	307	(B) THE COMMISSIONER MAY ADJU ST ANY FEES A REGULA TED FINANCIAL 22
308	308	INSTITUTION MAY BE R EQUIRED TO PAY UNDER THIS ARTICLE BASED O N THE 23
309	309	RATING RECEIVED BY THE REGULATED FIN ANCIAL INSTITUTION U NDER THIS 24
310	310	SUBTITLE. 25
311	311
312	312	(C) A REGULATED FINANCIAL INSTITUTION THAT REC EIVED A RATING OF 26
313	313	“NEEDS TO IMPROVE ” OR “SUBSTANTIAL NONCOMPL IANCE” MAY NOT RECEIVE 27
314	314	DEPOSITS FROM A STATE AGENCY. 28
315	315
316	316	1–505. 29
317	317	8 HOUSE BILL 392
318	318
319	319
320	320	(A) (1) AFTER THE COMMISSIONER EXAMINES A REGULATED FINANCIA L 1
321	321	INSTITUTION IN ACCORDANCE WITH § 1–503 OF THIS SUBTITLE , THE 2
322	322	COMMISSIONER SHALL PREPARE A WRITTEN EV ALUATION OF THE REGULATED 3
323	323	FINANCIAL INSTITUTIO N’S RECORD OF MEETING THE NEEDS OF THE REGULATED 4
324	324	FINANCIAL INSTITUTION’S COMMUNITY . 5
325	325
326	326	(2) A WRITTEN EVALUATION R EQUIRED UNDER THIS S ECTION SHALL 6
327	327	HAVE A PUBLIC SECTIO N AND A CONFIDENTIAL SECTION. 7
328	328
329	329	(B) (1) THE PUBLIC SECTION OF A WRITTEN EVALUATION SHALL: 8
330	330
331	331	(I) STATE THE COMMISSIONER ’S CONCLUSIONS FOR EA CH 9
332	332	EXAMINATION CRITERION AND SUBTES T; 10
333	333
334	334	(II) DISCUSS THE FACTS AND DATA SUPPORTING EACH 11
335	335	CONCLUSION ; AND 12
336	336
337	337	(III) CONTAIN THE RATING OF THE REGULATED FINANC IAL 13
338	338	INSTITUTION AND A ST ATEMENT DESCRIBING T HE BASIS FOR THE RAT ING. 14
339	339
340	340	(2) THE INFORMATION REQUI RED BY PARAGRAPH (1) OF THIS 15
341	341	SUBSECTION SHALL BE DISAGGREGATED BY ASS ESSMENT AREA , INCLUDING: 16
342	342
343	343	(I) THE STATE; 17
344	344
345	345	(II) METROPOLITAN AREAS ; 18
346	346
347	347	(III) URBAN OR RURAL COUNTI ES; AND 19
348	348
349	349	(IV) GROUPINGS OF RURAL CO UNTIES. 20
350	350
351	351	(C) (1) THE CONFIDENTIAL SECTION O F THE WRITTEN EVALUA TION 21
352	352	SHALL CONTAIN ANY RE FERENCES THAT IDENTI FY: 22
353	353
354	354	(I) A CUSTOMER OF THE REGU LATED FINANCIAL INST ITUTION; 23
355	355
356	356	(II) AN EMPLOYEE OR OFFICE R OF THE REGULATED F INANCIAL 24
357	357	INSTITUTION; OR 25
358	358
359	359	(III) A PERSON OR AN ORGANIZATION THAT HAS PROVID ED 26
360	360	INFORMATION IN CONFI DENCE TO THE COMMISSIONER OR A FED ERAL FINANCIAL 27
361	361	SUPERVISORY AGENCY . 28
362	362	HOUSE BILL 392 9
363	363
364	364
365	365	(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
366	366	PARAGRAPH , THE CONFIDENTIAL SEC TION OF THE WRITTEN EVALUATION SHALL 2
367	367	CONTAIN ANY STATEMEN TS OBTAINED OR MADE BY THE COMMISSIONER IN THE 3
368	368	COURSE OF AN EXAMINA TION THAT, IN THE JUDGMENT OF T HE COMMISSIONER , ARE 4
369	369	TOO SENSITIVE OR SPEC ULATIVE IN NATURE TO DISCLOSE TO THE REGU LATED 5
370	370	FINANCIAL INSTITUTIO N OR THE PUBLIC. 6
371	371
372	372	(II) 1. THE CONFIDENTIAL SECT ION MAY BE DISCLOSED TO 7
373	373	THE REGULATED FINANC IAL INSTITUTION , WHOLLY OR PART LY, IF THE 8
374	374	COMMISSIONER DETERMIN ES THAT THE DISCLOSURE WILL PROM OTE THE 9
375	375	OBJECTIVES OF THIS S UBTITLE. 10
376	376
377	377	2. IF A DISCLOSURE IS MA DE UNDER THIS PARAGR APH, 11
378	378	THE DISCLOSURE MAY N OT IDENTIFY A PERSON OR AN ORGANIZATION THAT HA S 12
379	379	PROVIDED INFORMATION IN CONFIDENCE TO THE COMMISSIONER OR A FED ERAL 13
380	380	FINANCIAL SUPERVISORY AGENCY . 14
381	381
382	382	(D) IF A REGULATED FINANC IAL INSTITUTION HAS ENGAGED IN AN UNFAIR , 15
383	383	ABUSIVE, OR DECEPTIVE TRADE P RACTICE UNDER § 13–301 OF THE COMMERCIAL 16
384	384	LAW ARTICLE OR AN ACT OR A PRACTICE THAT VIOLAT ES FAIR LENDING AND 17
385	385	HOUSING LAWS INTENDE D TO ENS URE THE FAIR , EQUITABLE, AND 18
386	386	NONDISCRIMINATORY AC CESS TO CREDIT FOR I NDIVIDUALS AND COMMU NITIES 19
387	387	THAT ARE ENFORCED BY THE FEDERAL BUREAU OF CONSUMER FINANCIAL 20
388	388	PROTECTION OR OTHER F EDERAL OR STATE AGENCIES , THE COMMISSIONER MAY 21
389	389	LOWER THE RATING OF THE REGULATED FIN ANCIAL INSTITUTION COMMENSURATE 22
390	390	WITH THE EXTENT OF T HE VIOLATION. 23
391	391
392	392	1–506. 24
393	393
394	394	(A) (1) THE COMMISSION ER SHALL REQUIRE A REGULATED FINANCIAL 25
395	395	INSTITUTION THAT RECEIVED A RATI NG OF “LOW SATISFACTORY ” OR LOWER ON 26
396	396	THE WRITTEN EVALUATI ON REQUIRED IN § 1–505 OF THIS SUBTITLE OR IN AN 27
397	397	INDIVIDUAL ASSESSMEN T AREA TO SUBMIT AN IMPROVEMEN T PLAN. 28
398	398
399	399	(2) A REGULATED FINANCIAL INSTITUTION THAT IS REQUIRED TO 29
400	400	SUBMIT AN IMPROVEMENT PLAN SHA LL SUBMIT THE IMPROV EMENT PLAN TO THE 30
401	401	COMMISSIONER FOR APPR OVAL: 31
402	402
403	403	(I) IN WRITING; AND 32
404	404
405	405	(II) NOT LATER THAN 90 DAYS AFTER RECEIVING NOTICE THAT 33
406	406	THE REGULATED FINANC IAL INSTITUTION IS R EQUIRED TO SUBMIT AN 34
407	407	IMPROVEMENT PLAN . 35 10 HOUSE BILL 392
408	408
409	409
410	410
411	411	(B) (1) ON RECEIPT OF AN IMPROV EMENT PLAN, THE COMMISSIONER : 1
412	412
413	413	(I) SHALL MAKE THE IMPROVEMENT PLAN AVAILABLE TO TH E 2
414	414	PUBLIC FOR A REVIEW AND COMMENT P ERIOD OF NOT LESS TH AN 60 DAYS; AND 3
415	415
416	416	(II) MAY REQUIRE THE REGULATED FINANCIAL INSTITUTIO N 4
417	417	TO REVISE THE IMPROVEMENT PLAN IN RE SPONSE TO ANY PUBLIC COMMENTS 5
418	418	RECEIVED. 6
419	419
420	420	(2) IF THE COMMISSIONER REQUIRES A REGULATED FINANCIA L 7
421	421	INSTITUTION TO SUBMI T A REVISED IMPROVEM ENT PLAN, THE REGULATED 8
422	422	FINANCIAL INSTITUTIO N SHALL SUBMIT THE R EVISED IMPROVEMENT P LAN TO THE 9
423	423	COMMISSIONER NOT LATER THAN 60 DAYS AFTER THE CLOSE OF THE REVIEW AND 10
424	424	COMMENT PERIOD. 11
425	425
426	426	(C) THE COMMISSIONER MAY APPR OVE AN IMPROVEMENT P LAN ONLY IF 12
427	427	THE COMMISSIONER FINDS TH AT THE IMPROVEMENT P LAN HAS A REASONABLE 13
428	428	LIKELIHOOD OF IMPROV ING THE REGULA TED FINANCIAL INSTIT UTION’S RATING TO 14
429	429	AT LEAST “SATISFACTORY ” IN MEETING THE FINAN CIAL NEEDS OF THE CO MMUNITY 15
430	430	IN THE RELEVANT ASSE SSMENT AREAS ON THE NEXT EXAMINATION . 16
431	431
432	432	1–507. 17
433	433
434	434	(A) THE COMMISSIONER SHALL TA KE THE RECORD OF A R EGULATED 18
435	435	FINANCIAL INSTITUTION INTO ACC OUNT WHEN EVALUATING A REGULATED 19
436	436	FINANCIAL INSTITUTIO N’S APPLICATION FOR A DEPOSIT FACILITY OR LICENSE. 20
437	437
438	438	(B) THE COMMISSIONER SHALL: 21
439	439
440	440	(1) CONSIDER THE OVERALL RATING OF THE REGULA TED FINANCIAL 22
441	441	INSTITUTION AND ANY IMPROVEMENT PLANS SU BMITTED IN ACCORDANC E WITH 23
442	442	THIS SUBTITLE; 24
443	443
444	444	(2) PROVIDE AN OPPORTUNIT Y FOR PUBLIC COMMENT FOR A PERIOD 25
445	445	OF NOT LESS THAN 60 DAYS; 26
446	446
447	447	(3) CONSIDER CHANGES IN T HE COMMUNITY REINVES TMENT AND 27
448	448	FAIR LENDING PERFORM ANCE OF THE REGULATE D FINANCIAL INSTITUT ION SINCE 28
449	449	THE MOST RECENT EXAM INATION AND RATING U NDER THIS SUBTITLE ; 29
450	450
451	451	(4) REQUIRE: 30
452	452	HOUSE BILL 392 11
453	453
454	454
455	455	(I) A DEMONSTRATION OF PUB LIC BENEFIT, INCLUDING A 1
456	456	COMMUNITY BENEFITS P LAN WITH MEASURABLE GOALS REGARDING INCR EASING 2
457	457	RESPONSIBLE LENDING AND OTHER FINANCIAL PRODUCTS THAT IS 3
458	458	COMMENSURATE WITH TH E ABILITY OF THE REG ULATED FINANCIAL INS TITUTION 4
459	459	TO ACCOMPLISH TH E GOALS; AND 5
460	460
461	461	(II) THAT THE REGULATED FI NANCIAL INSTITUTION CONSULT 6
462	462	WITH COMMUNITY –BASED ORGANIZATIONS AND OTHER COMMUNITY 7
463	463	STAKEHOLDERS IN DEVE LOPING THE COMMUNITY BENEFITS PLAN; AND 8
464	464
465	465	(5) CONDUCT A PUBLIC HEAR ING FOR A REGULATED FINANCIAL 9
466	466	INSTITUTION THAT HAS RECEIVED A “NEED TO IMPROVE ” OR “LOW SATISFACTORY ” 10
467	467	GRADE IN ANY ASSESSM ENT AREA DURING THE MOST RECENT EXAMINAT ION. 11
468	468
469	469	1–508. 12
470	470
471	471	(A) A REGULATED FINANCIAL INSTITUTION SHALL PR OVIDE A NOTICE TO 13
472	472	THE PUBLIC THAT IS SUBSTANTIALL Y SIMILAR TO THE FOL LOWING: 14
473	473
474	474	“MARYLAND COMMUNITY REINVESTMENT NOTICE 15
475	475
476	476	THE COMMISSIONER OF FINANCIAL REGULATION IN THE MARYLAND 16
477	477	DEPARTMENT OF LABOR EVALUATES OUR PE RFORMANCE IN MEETING THE 17
478	478	FINANCIAL SERVICES N EEDS OF THIS COMMUNI TY, INCLUDING THE NEEDS OF 18
479	479	LOW–INCOME TO MODERATE –INCOME HOUSEHOLDS AN D OTHER UNDERSERVED 19
480	480	POPULATIONS AND COMM UNITIES. THE COMMISSIONER TAKES TH IS EVALUATION 20
481	481	INTO ACCOUNT WHEN DE CIDING ON CE RTAIN APPLICATIONS S UBMITTED FOR 21
482	482	APPROVAL BY THE OFFICE OF FINANCIAL REGULATION. YOUR INVOLVEMENT IS 22
483	483	ENCOURAGED . YOU MAY OBTAIN A COPY OF OUR EVALUATION . YOU MAY ALSO 23
484	484	SUBMIT SIGNED , WRITTEN COMMENTS ABO UT OUR PERFORMANCE IN MEE TING THE 24
485	485	FINANCIAL SERVICES N EEDS OF THE COMMUNITY TO THE OFFICE OF FINANCIAL 25
486	486	REGULATION.”. 26
487	487
488	488	(B) THE NOTICE REQUIRED BY SUBSECTION (A) OF THIS SECTION SHAL L BE 27
489	489	POSTED: 28
490	490
491	491	(1) IN THE PUBLIC LOBBY O F A REGULATED FINANC IAL INSTITUTION; 29
492	492	AND 30
493	493
494	494	(2) ON THE WEBSITE OF THE RE GULATED FINANCIAL INSTITUTIO N. 31
495	495
496	496	1–509. 32
497	497	12 HOUSE BILL 392
498	498
499	499
500	500	(A) (1) THE COMMISSIONER SHALL ADOPT REGULATIONS TO CARRY OUT 1
501	501	THIS SUBTITLE. 2
502	502
503	503	(2) THE REGULATIONS SHALL INCLUDE EXAM INATION AND SUBTEST 3
504	504	CRITERIA FOR THE WRI TTEN EVALUATION REQU IRED IN § 1–505 OF THIS SUBTITLE. 4
505	505
506	506	(B) THE COMMISSIONER MAY : 5
507	507
508	508	(1) ALTER THE RATING CATE GORIES IN § 6
509	509	1–504(A) OF THIS SUBTITLE OR ADD A POINT SCALE ; AND 7
510	510
511	511	(2) ADOPT PROVISIONS OF THE FEDERAL COMMUNITY 8
512	512	REINVESTMENT ACT AND REGULATIONS ADOP TED UNDER TH AT ACT. 9
513	513
514	514	SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
515	515	October 1, 2023. 11