EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
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HOUSE BILL 392
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By: Delegate Wells
Introduced and read first time: January 26, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Financial Institutions – Maryland Community Reinvestment Act 2
FOR the purpose of requiring the Commissioner of Financial Regulation to examine and 3
prepare a written evaluation of the record of certain regulated financial institutions 4
in meeting the financial needs of certain communities; requiring the Commissioner 5
to give a certain regulated financial institution a certain rating based on a certain 6
examination and to prepare a written evaluation; requiring a certain regulated 7
financial institution to prepare a certain improvement plan under certain 8
circumstances; requiring the Commissioner to take certain matters into account 9
when evaluating certain applications of a regulated financial institution; and 10
generally relating to financial institutions and community investment. 11
BY repealing and reenacting, without amendments, 12
Article – Financial Institutions 13
Section 1–101(a), (d), (e), (g), and (i) 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2022 Supplement) 16
BY adding to 17
Article – Financial Institutions 18
Section 1–501 through 1–509 to be under the new subtitle “Subtitle 5. Maryland 19
Community Reinvestment Act” 20
Annotated Code of Maryland 21
(2020 Replacement Volume and 2022 Supplement) 22
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 23
That the Laws of Maryland read as follows: 24
Article – Financial Institutions 25
1–101. 26 2 HOUSE BILL 392
(a) In this article, unless the context clearly requires otherwise, the following 1
words have the meanings indicated. 2
(d) “Banking institution” means an institution that is incorporated under the 3
laws of this State as a State bank, trust company, or savings bank. 4
(e) “Charter” has the meaning stated in § 1–101 of the Corporations and 5
Associations Article. 6
(g) “Commissioner” means the Commissioner of Financial Regulation in the 7
Maryland Department of Labor. 8
(i) “Credit union” means a credit union that is incorporated under the laws of this 9
State as a credit union. 10
SUBTITLE 5. MARYLAND COMMUNITY REINVESTMENT ACT. 11
1–501. 12
(A) IN THIS SUBTITLE THE FOLLOWI NG WORDS HAVE THE ME ANINGS 13
INDICATED. 14
(B) “APPLICATION FOR A DEP OSIT FACILITY OR LIC ENSE” MEANS AN 15
APPLICATION TO THE COMMISSIONER FOR : 16
(1) A CHARTER FOR A BANKING INSTITUTION OR A CREDIT UNION; 17
(2) THE ESTABLISHMENT OF A DOMESTIC BRANCH OR OTHER 18
FACILITY WITH THE AB ILITY TO ACCEPT DEPO SITS FOR A REGULATED FINANCIAL 19
INSTITUTION; 20
(3) THE RELOCATION OF THE HOME OFFICE OR A BRA NCH OFFICE OF 21
A REGULATED FINANCIA L INSTITUTION; 22
(4) THE MERGER OR CONSOLI DATION WITH, THE ACQUISITION OF 23
THE ASSETS OF, OR THE ASSUMPTION OF THE LIABILITIES OF A REGULATED 24
FINANCIAL INSTITUTIO N; 25
(5) THE ACQUISITION OF SH ARES IN, OR THE ASSETS OF , A 26
REGULATED FINANCIAL INSTITUTION; OR 27
(6) AN INITIAL OR RENEWAL LICENSE TO MAKE LOAN S OR OFFER 28
OTHER FINANCIAL SERV ICES. 29
HOUSE BILL 392 3
(C) “ASSESSMENT AREA ” MEANS: 1
(1) FOR A REGULATED FINAN CIAL INSTITUTION OTH ER THAN A 2
CREDIT UNION: 3
(I) AN AREA WHERE THE REGULATED FINANCIAL INSTITUTION: 4
1. MAINTAINS DEPOSIT –TAKING BRANCHES, 5
AUTOMATED TELLER MAC HINES, OR RETAIL OFFICES ; AND 6
2. IS REPRESENTED BY AN AGENT; OR 7
(II) FOR AN AREA THAT DOES NO T HAVE DEPOSIT–TAKING 8
BRANCHES, AUTOMATED TELLER MAC HINES, RETAIL OFFICES, OR AGENTS, AN AREA 9
WHERE THE REGULATED FINANCIAL INSTITUTION ISSUES A SIGNIFICANT NUMBER 10
OF LOANS OR OTHER PR ODUCTS, INCLUDING DEPOSITS , RELATIVE TO THE TOTA L 11
NUMBER OF LOANS OR O THER PRODUCTS MADE B Y THE REGULATED FINANCIAL 12
INSTITUTION OR RELATIVE TO THE T OTAL NUMBER OF LOANS OR OTHER PRODUCTS 13
OFFERED BY THE PRIVA TE SECTOR MARKET ; OR 14
(2) FOR A CREDIT UNION , THE COMMON BOND OR FI ELD OF 15
MEMBERSHIP FOR A CRE DIT UNION. 16
(D) (1) “COMMUNITY” MEANS INDIVIDUALS OR GROUPS OF INDIVIDUALS 17
LOCATED IN THE ASSESSMENT AREA OF A REGULATED FINANCIA L INSTITUTION. 18
(2) “COMMUNITY” INCLUDES: 19
(I) LOW– AND MODERATE –INCOME INDIVIDUALS A ND 20
NEIGHBORHOODS ; AND 21
(II) OTHER DISTRESSED OR U NDERSERVED AREAS AND 22
POPULATIONS . 23
(E) “COMMUNITY BENEFITS PL AN” MEANS A PLAN CREATED BY A 24
REGULATED FINANCIAL INSTITUTION THAT PROVIDES MEASUR ABLE GOALS FOR 25
FUTURE AMOUNTS OF SA FE AND SOUND LOANS , INVESTMENTS , SERVICES, AND 26
OTHER FINANCIAL PROD UCTS FOR LOW – AND MODERATE –INCOME COMMUNITIES 27
AND OTHER DISTRESSED OR UNDERSERVED COMMU NITIES. 28
(F) “COMMUNITY DEVELOPMENT ” INCLUDES: 29
4 HOUSE BILL 392
(1) AFFORDABLE HOUSING FO R LOW– OR MODERATE –INCOME 1
INDIVIDUALS; 2
(2) AVOIDANCE OF PATTERNS OF LENDING RESULTING IN THE LOSS 3
OF AFFORDABLE HOUSIN G UNITS; 4
(3) COMMUNITY DEVELOPMENT SERVICES, INCLUDING FINANCIAL 5
COUNSELING AND SUCCE SSFUL MORTGAGE OR LO AN MODIFICATIONS OF 6
DELINQUENT LOANS ; 7
(4) ACTIVITIES THAT PROMO TE ECONOMIC DEVELOPM ENT BY 8
FINANCING SMALL BUSI NESSES OR FARMS , WITH AN EMPHASIS ON SMALL 9
BUSINESSES OR FARMS THAT HAVE GROSS ANNU AL REVENUES OF NOT M ORE THAN 10
$1,000,000; AND 11
(5) ACTIVITIES THAT REVIT ALIZE OR STABILIZE : 12
(I) LOW– OR MODERATE –INCOME CENSUS TRACTS ; 13
(II) DESIGNATED DISASTER A REAS; 14
(III) OTHER DISTRESSED OR UNDERSERVED COMMUNIT IES; 15
(IV) COMMUNITIES CONSISTIN G DISPROPORTIONATELY OF 16
OTHER UNDERSERVED PO PULATIONS; OR 17
(V) DISTRESSED OR UNDERSE RVED NONMETROPOLITAN 18
MIDDLE–INCOME CENSUS TRACTS OR OTHER CENSUS TRACTS DESIGNATED BY THE 19
FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL. 20
(G) “DEPOSITORY INSTITUTIO N” HAS THE MEANING STAT ED IN THE 21
FEDERAL DEPOSIT INSURANCE ACT, 12 U.S.C. § 1813(C). 22
(H) “FEDERAL FINANCIAL SUP ERVISORY AGENCY” MEANS: 23
(1) THE FEDERAL DEPOSIT INSTITUTION CORPORATION ; 24
(2) THE FEDERAL RESERVE BOARD; OR 25
(3) THE CONSUMER FINANCIAL PROTECTION BUREAU. 26
(I) “OTHER DISTRESSED OR U NDERSERVED AREA” MEANS A CENSUS TRACT 27
OR ANOTHER AREA THAT, ACCORDING TO A PERIO DIC REVIEW AND DATA ANALYSIS 28 HOUSE BILL 392 5
BY THE COMMISSIONER OR THE APPROPRIATE FEDERAL FINANCIAL SU PERVISORY 1
AGENCY ON AN INTERAGENCY BA SIS THROUGH THE FEDERAL FINANCIAL 2
INSTITUTIONS EXAMINATION COUNCIL, IS EXPERIENCING ECON OMIC HARDSHIP OR 3
IS UNDERSERVED BY FI NANCIAL INSTITUTIONS . 4
(J) “OTHER UNDERSERVED POP ULATION” MEANS A POPULATION THAT 5
EXPERIENCES ONGOING EFFECTS OF D ISCRIMINATION OR IS RELATIVELY 6
UNDERSERVED BY FINAN CIAL INSTITUTIONS AS MEASURED BY LOANS PE R CAPITA 7
OR OTHER SIMILAR MET RICS. 8
(K) “REGULATED FINANCIAL I NSTITUTION” MEANS: 9
(1) A BANKING INSTITUTION A S DEFINED IN § 1–101 OF THIS TITLE; 10
(2) A CREDIT UNION AS DEFIN ED IN § 1–101 OF THIS TITLE; OR 11
(3) A NONDEPOSITORY MORTGAG E COMPANY. 12
1–502. 13
(A) THE GENERAL ASSEMBLY FINDS THAT : 14
(1) A REGULATED FINANCIAL I NSTITUTION IS REQUIRED BY LAW TO 15
DEMONSTRATE THAT IT SERVES THE CONVENIENCE AND NEEDS OF THE 16
COMMUNITIES WHERE THE REGULATED FINANC IAL INSTITUTION IS CHARTERED TO 17
DO BUSINESS; 18
(2) THE CONVENIENCE AND N EEDS OF COMMUNITIES INCLUDE THE 19
AVAILABILITY OF CREDIT, DEPOSITORY SERVICES, AND OTHER FINANCIAL 20
PRODUCTS; AND 21
(3) A REGULATED FINANCIAL I NSTITUTION HAS AN AFFIRMATIVE 22
AND CONTINUING OBLIGATIO N TO SERVE THE NEEDS OF THE COM MUNITIES WHERE 23
THE REGULATED FINANC IAL INSTITUTION IS CHARTERED . 24
(B) THE PURPOSE OF THIS S UBTITLE IS TO REQUIRE T HE COMMISSIONER 25
TO ENCOURAGE REGULATED FINANCIAL INSTITUTIONS TO MEET THE FINANCIA L 26
NEEDS OF THE LOCAL C OMMUNITIES WHERE THE REGULATED FINANC IAL 27
INSTITUTIONS ARE CHARTERED CONSIS TENT WITH THE SAFE A ND SOUND 28
OPERATION OF THE REGULATED FINANCIAL INSTITUTIONS. 29
1–503. 30
6 HOUSE BILL 392
(A) (1) THE COMMISSIONER SHALL EX AMINE EACH REGULATED 1
FINANCIAL INSTITUTIO N TO ASSESS WHETHER TH E REGULATED FINANCIA L 2
INSTITUTION IS MEETI NG THE FINANCIAL NEE DS OF THE LOCAL COMM UNITIES 3
WHERE THE REGULATED FINANC IAL INSTITUTION IS C HARTED AT LEAST ONCE 4
EVERY 3 YEARS. 5
(2) THE COMMISSIONER SHALL : 6
(I) PUBLISH AN EXAMINATIO N SCHEDULE AT THE BE GINNING 7
OF EACH CALENDAR YEAR; 8
(II) UPDATE THE EXAMINATIO N SCHEDULE EACH QUAR TER; 9
AND 10
(III) SOLICIT AND CONSIDER PUBLIC COMMENT RELAT ED TO 11
THE COMPLIANCE OF A REGULATED FINANCIAL INSTITUTION WITH THI S SUBTITLE. 12
(B) WHEN EXAMINING A REGU LATED FINANCIAL INST ITUTION IN 13
ACCORDANCE WITH THIS SUBTITLE , THE COMMISSIONER SHALL ASSESS THE 14
RECORD OF THE REGULATED FINANCIAL INSTITUTION IN: 15
(1) PROVIDING ACCESS TO C REDIT, DEPOSITORY SERVICES , AND 16
OTHER FINANCIAL PROD UCTS TO MEMBERS OF THE CO MMUNITY WHERE THE 17
REGULATED FINANCIAL INSTITUTION IS CHARTERED , CONSISTENT WITH THE SAFE 18
AND SOUND OP ERATION OF THE REGULATED FINANC IAL INSTITUTION; AND 19
(2) PARTICIPATING IN THE FOLLOWING ACTIVI TIES: 20
(I) RETAIL LENDING , INCLUDING HOME LOANS, SMALL 21
BUSINESS LOANS, CONSUMER LOANS, AND OTHER LENDING AN D FINANCIAL 22
PRODUCTS; 23
(II) COMMUNITY DEVELOPMENT LENDING AND INVESTMENT ; 24
(III) PROVIDING G RANTS TO NONPROFIT O RGANIZATIONS 25
ENGAGED IN COMMUNITY DEVELOPMENT ; 26
(IV) PROVIDING RETAIL FINANCIAL SERV ICES, BRANCHES AND 27
OTHER SERVICE FACILI TIES, LOW–COST DEPOSIT ACCOUNT S, AND COMMUNITY 28
DEVELOPMENT SERVICES ; 29
HOUSE BILL 392 7
(V) OFFERING SAFE AND SOUND PRODU CTS, USING 1
DELINQUENCY RATES , DEFAULT RATES , REPAYMENT DATA, AND ANY OTHER 2
RELEVANT DATA; 3
(VI) WORKING WITH DELINQUENT BORR OWERS TO RESOLVE 4
DELINQUENCIES , INCLUDING TIMELY LOA N MODIFICATIONS; AND 5
(VII) PREVENTING DISPLACEMENT OF LOW – AND 6
MODERATE–INCOME POPULATIONS A ND WORKING TO PROMOTE INTEGRATI ON. 7
(C) THE COMMISSIONER MAY COND UCT THE EXAMINATIONS REQUIRED 8
UNDER THIS SECTION JOINTLY WITH THE APPROPRIATE FEDERAL FINANCIAL 9
SUPERVISORY AGENCY O R OTHER REGULATED FI NANCIAL INSTITUTIONS THAT ARE 10
OR MAY BE SUBJECT TO A FEDERAL COMMUNITY REINVESTMENT ACT 11
REQUIREMENT . 12
1–504. 13
(A) THE COMMISSIONER SHALL GIVE EACH REGULATED FINANCIAL 14
INSTITUTION ONE OF T HE FOLLOWING RATINGS BASED ON THE EXAMINATION 15
CONDUCTED IN ACCORDA NCE WITH § 1–503 OF THIS SUBTITLE: 16
(1) OUTSTANDING RECORD OF MEETING COMMUNITY NE EDS; 17
(2) SATISFACTORY RECORD O F MEETING COMMUNITY NEEDS; 18
(3) LOW SATISFACTORY RECO RD OF MEETING COMMUN ITY NEEDS; 19
(4) NEEDS TO IMPROVE RECORD OF ME ETING COMMUNITY NEED S; OR 20
(5) SUBSTANTIAL NONCOMPLI ANCE IN MEETING COMM UNITY NEEDS. 21
(B) THE COMMISSIONER MAY ADJU ST ANY FEES A REGULA TED FINANCIAL 22
INSTITUTION MAY BE R EQUIRED TO PAY UNDER THIS ARTICLE BASED O N THE 23
RATING RECEIVED BY THE REGULATED FIN ANCIAL INSTITUTION U NDER THIS 24
SUBTITLE. 25
(C) A REGULATED FINANCIAL INSTITUTION THAT REC EIVED A RATING OF 26
“NEEDS TO IMPROVE ” OR “SUBSTANTIAL NONCOMPL IANCE” MAY NOT RECEIVE 27
DEPOSITS FROM A STATE AGENCY. 28
1–505. 29
8 HOUSE BILL 392
(A) (1) AFTER THE COMMISSIONER EXAMINES A REGULATED FINANCIA L 1
INSTITUTION IN ACCORDANCE WITH § 1–503 OF THIS SUBTITLE , THE 2
COMMISSIONER SHALL PREPARE A WRITTEN EV ALUATION OF THE REGULATED 3
FINANCIAL INSTITUTIO N’S RECORD OF MEETING THE NEEDS OF THE REGULATED 4
FINANCIAL INSTITUTION’S COMMUNITY . 5
(2) A WRITTEN EVALUATION R EQUIRED UNDER THIS S ECTION SHALL 6
HAVE A PUBLIC SECTIO N AND A CONFIDENTIAL SECTION. 7
(B) (1) THE PUBLIC SECTION OF A WRITTEN EVALUATION SHALL: 8
(I) STATE THE COMMISSIONER ’S CONCLUSIONS FOR EA CH 9
EXAMINATION CRITERION AND SUBTES T; 10
(II) DISCUSS THE FACTS AND DATA SUPPORTING EACH 11
CONCLUSION ; AND 12
(III) CONTAIN THE RATING OF THE REGULATED FINANC IAL 13
INSTITUTION AND A ST ATEMENT DESCRIBING T HE BASIS FOR THE RAT ING. 14
(2) THE INFORMATION REQUI RED BY PARAGRAPH (1) OF THIS 15
SUBSECTION SHALL BE DISAGGREGATED BY ASS ESSMENT AREA , INCLUDING: 16
(I) THE STATE; 17
(II) METROPOLITAN AREAS ; 18
(III) URBAN OR RURAL COUNTI ES; AND 19
(IV) GROUPINGS OF RURAL CO UNTIES. 20
(C) (1) THE CONFIDENTIAL SECTION O F THE WRITTEN EVALUA TION 21
SHALL CONTAIN ANY RE FERENCES THAT IDENTI FY: 22
(I) A CUSTOMER OF THE REGU LATED FINANCIAL INST ITUTION; 23
(II) AN EMPLOYEE OR OFFICE R OF THE REGULATED F INANCIAL 24
INSTITUTION; OR 25
(III) A PERSON OR AN ORGANIZATION THAT HAS PROVID ED 26
INFORMATION IN CONFI DENCE TO THE COMMISSIONER OR A FED ERAL FINANCIAL 27
SUPERVISORY AGENCY . 28
HOUSE BILL 392 9
(2) (I) EXCEPT AS PROVIDED IN SUBPARAGRAPH (II) OF THIS 1
PARAGRAPH , THE CONFIDENTIAL SEC TION OF THE WRITTEN EVALUATION SHALL 2
CONTAIN ANY STATEMEN TS OBTAINED OR MADE BY THE COMMISSIONER IN THE 3
COURSE OF AN EXAMINA TION THAT, IN THE JUDGMENT OF T HE COMMISSIONER , ARE 4
TOO SENSITIVE OR SPEC ULATIVE IN NATURE TO DISCLOSE TO THE REGU LATED 5
FINANCIAL INSTITUTIO N OR THE PUBLIC. 6
(II) 1. THE CONFIDENTIAL SECT ION MAY BE DISCLOSED TO 7
THE REGULATED FINANC IAL INSTITUTION , WHOLLY OR PART LY, IF THE 8
COMMISSIONER DETERMIN ES THAT THE DISCLOSURE WILL PROM OTE THE 9
OBJECTIVES OF THIS S UBTITLE. 10
2. IF A DISCLOSURE IS MA DE UNDER THIS PARAGR APH, 11
THE DISCLOSURE MAY N OT IDENTIFY A PERSON OR AN ORGANIZATION THAT HA S 12
PROVIDED INFORMATION IN CONFIDENCE TO THE COMMISSIONER OR A FED ERAL 13
FINANCIAL SUPERVISORY AGENCY . 14
(D) IF A REGULATED FINANC IAL INSTITUTION HAS ENGAGED IN AN UNFAIR , 15
ABUSIVE, OR DECEPTIVE TRADE P RACTICE UNDER § 13–301 OF THE COMMERCIAL 16
LAW ARTICLE OR AN ACT OR A PRACTICE THAT VIOLAT ES FAIR LENDING AND 17
HOUSING LAWS INTENDE D TO ENS URE THE FAIR , EQUITABLE, AND 18
NONDISCRIMINATORY AC CESS TO CREDIT FOR I NDIVIDUALS AND COMMU NITIES 19
THAT ARE ENFORCED BY THE FEDERAL BUREAU OF CONSUMER FINANCIAL 20
PROTECTION OR OTHER F EDERAL OR STATE AGENCIES , THE COMMISSIONER MAY 21
LOWER THE RATING OF THE REGULATED FIN ANCIAL INSTITUTION COMMENSURATE 22
WITH THE EXTENT OF T HE VIOLATION. 23
1–506. 24
(A) (1) THE COMMISSION ER SHALL REQUIRE A REGULATED FINANCIAL 25
INSTITUTION THAT RECEIVED A RATI NG OF “LOW SATISFACTORY ” OR LOWER ON 26
THE WRITTEN EVALUATI ON REQUIRED IN § 1–505 OF THIS SUBTITLE OR IN AN 27
INDIVIDUAL ASSESSMEN T AREA TO SUBMIT AN IMPROVEMEN T PLAN. 28
(2) A REGULATED FINANCIAL INSTITUTION THAT IS REQUIRED TO 29
SUBMIT AN IMPROVEMENT PLAN SHA LL SUBMIT THE IMPROV EMENT PLAN TO THE 30
COMMISSIONER FOR APPR OVAL: 31
(I) IN WRITING; AND 32
(II) NOT LATER THAN 90 DAYS AFTER RECEIVING NOTICE THAT 33
THE REGULATED FINANC IAL INSTITUTION IS R EQUIRED TO SUBMIT AN 34
IMPROVEMENT PLAN . 35 10 HOUSE BILL 392
(B) (1) ON RECEIPT OF AN IMPROV EMENT PLAN, THE COMMISSIONER : 1
(I) SHALL MAKE THE IMPROVEMENT PLAN AVAILABLE TO TH E 2
PUBLIC FOR A REVIEW AND COMMENT P ERIOD OF NOT LESS TH AN 60 DAYS; AND 3
(II) MAY REQUIRE THE REGULATED FINANCIAL INSTITUTIO N 4
TO REVISE THE IMPROVEMENT PLAN IN RE SPONSE TO ANY PUBLIC COMMENTS 5
RECEIVED. 6
(2) IF THE COMMISSIONER REQUIRES A REGULATED FINANCIA L 7
INSTITUTION TO SUBMI T A REVISED IMPROVEM ENT PLAN, THE REGULATED 8
FINANCIAL INSTITUTIO N SHALL SUBMIT THE R EVISED IMPROVEMENT P LAN TO THE 9
COMMISSIONER NOT LATER THAN 60 DAYS AFTER THE CLOSE OF THE REVIEW AND 10
COMMENT PERIOD. 11
(C) THE COMMISSIONER MAY APPR OVE AN IMPROVEMENT P LAN ONLY IF 12
THE COMMISSIONER FINDS TH AT THE IMPROVEMENT P LAN HAS A REASONABLE 13
LIKELIHOOD OF IMPROV ING THE REGULA TED FINANCIAL INSTIT UTION’S RATING TO 14
AT LEAST “SATISFACTORY ” IN MEETING THE FINAN CIAL NEEDS OF THE CO MMUNITY 15
IN THE RELEVANT ASSE SSMENT AREAS ON THE NEXT EXAMINATION . 16
1–507. 17
(A) THE COMMISSIONER SHALL TA KE THE RECORD OF A R EGULATED 18
FINANCIAL INSTITUTION INTO ACC OUNT WHEN EVALUATING A REGULATED 19
FINANCIAL INSTITUTIO N’S APPLICATION FOR A DEPOSIT FACILITY OR LICENSE. 20
(B) THE COMMISSIONER SHALL: 21
(1) CONSIDER THE OVERALL RATING OF THE REGULA TED FINANCIAL 22
INSTITUTION AND ANY IMPROVEMENT PLANS SU BMITTED IN ACCORDANC E WITH 23
THIS SUBTITLE; 24
(2) PROVIDE AN OPPORTUNIT Y FOR PUBLIC COMMENT FOR A PERIOD 25
OF NOT LESS THAN 60 DAYS; 26
(3) CONSIDER CHANGES IN T HE COMMUNITY REINVES TMENT AND 27
FAIR LENDING PERFORM ANCE OF THE REGULATE D FINANCIAL INSTITUT ION SINCE 28
THE MOST RECENT EXAM INATION AND RATING U NDER THIS SUBTITLE ; 29
(4) REQUIRE: 30
HOUSE BILL 392 11
(I) A DEMONSTRATION OF PUB LIC BENEFIT, INCLUDING A 1
COMMUNITY BENEFITS P LAN WITH MEASURABLE GOALS REGARDING INCR EASING 2
RESPONSIBLE LENDING AND OTHER FINANCIAL PRODUCTS THAT IS 3
COMMENSURATE WITH TH E ABILITY OF THE REG ULATED FINANCIAL INS TITUTION 4
TO ACCOMPLISH TH E GOALS; AND 5
(II) THAT THE REGULATED FI NANCIAL INSTITUTION CONSULT 6
WITH COMMUNITY –BASED ORGANIZATIONS AND OTHER COMMUNITY 7
STAKEHOLDERS IN DEVE LOPING THE COMMUNITY BENEFITS PLAN; AND 8
(5) CONDUCT A PUBLIC HEAR ING FOR A REGULATED FINANCIAL 9
INSTITUTION THAT HAS RECEIVED A “NEED TO IMPROVE ” OR “LOW SATISFACTORY ” 10
GRADE IN ANY ASSESSM ENT AREA DURING THE MOST RECENT EXAMINAT ION. 11
1–508. 12
(A) A REGULATED FINANCIAL INSTITUTION SHALL PR OVIDE A NOTICE TO 13
THE PUBLIC THAT IS SUBSTANTIALL Y SIMILAR TO THE FOL LOWING: 14
“MARYLAND COMMUNITY REINVESTMENT NOTICE 15
THE COMMISSIONER OF FINANCIAL REGULATION IN THE MARYLAND 16
DEPARTMENT OF LABOR EVALUATES OUR PE RFORMANCE IN MEETING THE 17
FINANCIAL SERVICES N EEDS OF THIS COMMUNI TY, INCLUDING THE NEEDS OF 18
LOW–INCOME TO MODERATE –INCOME HOUSEHOLDS AN D OTHER UNDERSERVED 19
POPULATIONS AND COMM UNITIES. THE COMMISSIONER TAKES TH IS EVALUATION 20
INTO ACCOUNT WHEN DE CIDING ON CE RTAIN APPLICATIONS S UBMITTED FOR 21
APPROVAL BY THE OFFICE OF FINANCIAL REGULATION. YOUR INVOLVEMENT IS 22
ENCOURAGED . YOU MAY OBTAIN A COPY OF OUR EVALUATION . YOU MAY ALSO 23
SUBMIT SIGNED , WRITTEN COMMENTS ABO UT OUR PERFORMANCE IN MEE TING THE 24
FINANCIAL SERVICES N EEDS OF THE COMMUNITY TO THE OFFICE OF FINANCIAL 25
REGULATION.”. 26
(B) THE NOTICE REQUIRED BY SUBSECTION (A) OF THIS SECTION SHAL L BE 27
POSTED: 28
(1) IN THE PUBLIC LOBBY O F A REGULATED FINANC IAL INSTITUTION; 29
AND 30
(2) ON THE WEBSITE OF THE RE GULATED FINANCIAL INSTITUTIO N. 31
1–509. 32
12 HOUSE BILL 392
(A) (1) THE COMMISSIONER SHALL ADOPT REGULATIONS TO CARRY OUT 1
THIS SUBTITLE. 2
(2) THE REGULATIONS SHALL INCLUDE EXAM INATION AND SUBTEST 3
CRITERIA FOR THE WRI TTEN EVALUATION REQU IRED IN § 1–505 OF THIS SUBTITLE. 4
(B) THE COMMISSIONER MAY : 5
(1) ALTER THE RATING CATE GORIES IN § 6
1–504(A) OF THIS SUBTITLE OR ADD A POINT SCALE ; AND 7
(2) ADOPT PROVISIONS OF THE FEDERAL COMMUNITY 8
REINVESTMENT ACT AND REGULATIONS ADOP TED UNDER TH AT ACT. 9
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 10
October 1, 2023. 11