EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0548*
HOUSE BILL 548
I1 3lr0117
CF 3lr0090
By: The Speaker (By Request – Administration) and Delegates Addison, Allen,
Alston, Amprey, Attar, Bagnall, Bhandari, Boafo, Boyce, Cardin, Charles,
Conaway, Crutchfield, Cullison, Davis, Ebersole, Edelson, Embry, Fennell,
Foley, Fraser–Hidalgo, Grossman, Harr is, Harrison, Healey, Henson,
Holmes, D. Jones, Kaiser, Kaufman, Kelly, Kerr, J. Long, Lopez, Pasteur,
Patterson, Phillips, Qi, Queen, Reznik, Rogers, Rosenberg, Ruth,
Sample–Hughes, Shetty, Simpson, Smith, Solomon, Stein, Taveras, Toles,
Turner, Valderrama, Vogel, Watson, Wells, Wilkins, Williams, Wivell, Woods,
Wu, and Young
Introduced and read first time: February 2, 2023
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Financial Regulation – Maryland Community Investment Venture Fund – 2
Establishment 3
(Access to Banking Act) 4
FOR the purpose of authorizing the establishment of a Maryland Community Investment 5
Venture Fund by the Commissioner of Financial Regulation for certain purposes; 6
providing for certain assessment offset credits for certain banking institutions and 7
credit unions that establish de novo branches or maintain branches in certain areas; 8
authorizing the use of the Banking Institution and Credit Union Regulation Fund for 9
certain purposes; and generally relating to financial regulation and the assessment of 10
banking institutions and credit unions. 11
BY repealing and reenacting, with amendments, 12
Article – Financial Institutions 13
Section 2–118, 5–203, and 6–712 14
Annotated Code of Maryland 15
(2020 Replacement Volume and 2022 Supplement) 16
BY adding to 17
Article – Financial Institutions 18
Section 2–118.1 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2022 Supplement) 21 2 HOUSE BILL 548
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 1
That the Laws of Maryland read as follows: 2
Article – Financial Institutions 3
2–118. 4
(a) In this section, “Fund” means the Banking Institution and Credit Union 5
Regulation Fund established under this section. 6
(b) There is a Banking Institution and Credit Union Regulation Fund that 7
consists of: 8
(1) All revenue received for the chartering and regulation of persons who 9
engage in the business of a banking institution or credit union under this article; and 10
(2) Any other fee, assessment, or revenue received by the Commissioner 11
from banking institutions and credit unions under this article. 12
(c) Notwithstanding subsection (b) of this section, the Commissioner shall pay all 13
fines and penalties collected by the Commissioner from banking institutions and credit 14
unions under this article into the General Fund of the State. 15
(d) The purpose of the Fund is to pay all the costs and expenses incurred by the 16
Commissioner that are related to the regulation of banking institutions and credit unions 17
under this article, including: 18
(1) Expenditures authorized under this article; [and] 19
(2) INVESTMENTS AUTHORIZE D UNDER § 2–118.1 OF THIS SUBTITLE ; 20
AND 21
[(2)] (3) Any other expense authorized in the State budget. 22
(e) (1) All the costs and expenses of the Commissioner relating to the 23
regulation of banking institutions and credit unions under this article shall be included in 24
the State budget. 25
(2) Any expenditures from the Fund to cover costs and expenses of the 26
Commissioner may be made only: 27
(i) By an appropriation from the Fund approved by the General 28
Assembly in the annual State budget; or 29
(ii) By the budget amendment procedure provided for in § 7–209 of 30
the State Finance and Procurement Article. 31 HOUSE BILL 548 3
(3) If, in any given fiscal year, the amount of the revenue collected by the 1
Commissioner and deposited into the Fund exceeds the actual appropriation for the 2
Commissioner to regulate banking institutions and credit unions under this article, the 3
excess amount shall be carried forward within the Fund. 4
(f) (1) The State Treasurer is the custodian of the Fund. 5
(2) The State Treasurer shall deposit payments received from the 6
Commissioner into the Fund. 7
(g) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 8
7–302 of the State Finance and Procurement Article, and may not be deemed a part of the 9
General Fund of the State. 10
(2) Unless otherwise provided by law, no part of the Fund may revert or be 11
credited to: 12
(i) The General Fund of the State; or 13
(ii) A special fund of the State. 14
2–118.1. 15
(A) (1) IN THIS SECTION THE FOLLOWING WORDS HAVE THE MEANINGS 16
INDICATED. 17
(2) “LOW– TO MODERATE –INCOME TRACT ” HAS THE MEANING 18
STATED IN § 5–203 OF THIS ARTICLE. 19
(3) “PRIVATE VENTURE FUND ” MEANS THE SEPARATE E NTITY OR 20
ENTITIES CHARTERED I N ACCORDANCE WITH SU BSECTIONS (B) AND (K) OF THIS 21
SECTION. 22
(B) (1) THE COMMISSIONER MAY INVE ST IN A MARYLAND COMMUNITY 23
INVESTMENT VENTURE FUND. 24
(2) THE MARYLAND COMMUNITY INVESTMENT VENTURE FUND IS A 25
PRIVATE VENTURE FUND THAT IS A SEPARATELY CHARTERED EQUITY FUN D USING 26
BOTH PUBLIC AND PRIV ATE INVESTMENT FUNDS . 27
(3) THE PURPOSE OF THE PR IVATE VENTURE FUND I S TO DEVELOP 28
OPPORTUNITIES FOR BA NKING INSTITUTIONS A ND CREDIT UNIONS TO BETTER 29
SERVE THE NEEDS OF L OW– TO MODERATE –INCOME TRACTS BY : 30
4 HOUSE BILL 548
(I) INVESTING IN THE DEVE LOPMENT OF FINANCIAL PRODUCT 1
OR FINANCIAL PRODUCT UNDERWRITING INNOVAT IONS THAT WILL ENHAN CE 2
ACCESS TO CAPITAL , FUNDING, AND OTHER FINANCIAL SERVICES FOR BUSINES SES 3
IN LOW– TO MODERATE –INCOME TRACTS IN MARYLAND; 4
(II) DEPLOYING, TESTING, AND EVALUATING THESE 5
INNOVATIONS FOR PRO VIDING CAPITAL AND F UNDING TO BUSINESSES IN LOW– TO 6
MODERATE–INCOME TRACTS IN MARYLAND; AND 7
(III) PROMOTING AND MAKING THESE INNOVATIONS AV AILABLE 8
TO A VARIETY OF BANK ING INSTITUTIONS AND CREDIT UNIONS FOR US E IN 9
ENHANCING ACCESS TO CAPITAL, FUNDING, AND OTHER FINANCIAL S ERVICES FOR 10
BUSINESSES IN LOW – TO MODERATE –INCOME TRACTS IN MARYLAND. 11
(C) THE COMMISSIONER MAY EXPE ND UP TO $250,000 FROM THE BANKING 12
INSTITUTION AND CREDIT UNION REGULATION FUND UNDER § 2–118 OF THIS 13
SUBTITLE TO COVER TH E EXPENSES AS SOCIATED WITH CHARTE RING AND 14
ORGANIZING THE PRIVA TE VENTURE FUND , INCLUDING ACCOUNTING , ADVISORY, 15
THIRD–PARTY SERVICE PROVID ER, MARKETING, AND OTHER NECESSARY 16
EXPENSES. 17
(D) TO ENCOURAGE PRIVATE INVESTMENT, THE COMMISSIONER MAY 18
PROVIDE THE INITIAL EQUITY CAPITAL INVESTMENT I N THE PRIVATE VENTUR E 19
FUND IN AN AMOUNT UP TO $2,500,000 FROM THE BANKING INSTITUTION AND 20
CREDIT UNION REGULATION FUND. 21
(E) THROUGH JUNE 30, 2028, THE COMMISSIONER MAY MATC H ANY 22
INVESTMENT MADE IN T HE PRIVATE VENTURE F UND BY A BANKING INSTITUTION OR 23
CREDIT UNION UP TO T HE AMOUNT OF THE ASS ESSMENT CREDIT EARNE D BY THAT 24
BANKING INSTITUTION OR CREDIT UNION UNDE R § 5–203(C) OR § 6–712(C)(4) OF 25
THIS ARTICLE. 26
(F) THE COMMISSIONER MAY NOT MAKE ANY FURTHER INV ESTMENTS IN 27
THE PRIVATE VENTURE FUND AFTER JUNE 30, 2028. 28
(G) ANY AND ALL INVESTMEN T RETURNS OR RETURN OF CAPITAL FROM 29
THE PRIVATE VENTURE FUND WITH RESPECT TO ANY INVESTMENT AUTHO RIZED BY 30
THE COMMISSIONER SHALL BE THE PROPERTY OF THE BANKING INSTITUTION AND 31
CREDIT UNION REGULATION FUND. 32
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 33
COMMISSIONER MAY NEGO TIATE APPROPRIATE GO VERNANCE STRUCTURES FOR 34
THE PRIVATE VENTURE FUND WITH OTHER INVE STORS. 35 HOUSE BILL 548 5
(2) THE COMMISSIONER OR A REP RESENTATIVE OF THE 1
COMMISSIONER SHALL AL WAYS SERVE ON THE BODY GOVERNIN G THE PRIVATE 2
VENTURE FUND . 3
(3) (I) THE PURPOSE OF THE PR IVATE VENTURE FUND M AY NOT BE 4
ALTERED OR AMENDED W ITHOUT THE CONSENT O F THE COMMISSIONER . 5
(II) ANY ALTERED OR AMENDE D PURPOSE MUST REMAI N 6
CONSISTENT WITH THIS SECTION. 7
(I) AT THE DIRECTION OF T HE COMMISSIONER , AND IN ADDITION TO A NY 8
CUSTOMARY AND APPROP RIATE AUDITS OF THE FUND, THE PRIVATE VENTURE 9
FUND SHALL BE REQUIR ED TO ENGAGE AN INDE PENDENT THIRD PARTY 10
DESIGNATED BY THE COMMISSIONER ON AN AN NUAL BASIS TO EVALUA TE WHETHER 11
ALL INVESTMENTS MEET THE CRITERIA ESTABLI SHED BY THIS SECTION . 12
(J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 13
DIVISION II OF THE STATE FINANCE AND PROCUREMENT ARTICLE DOES NOT 14
APPLY TO A SERVICE T HAT THE COMMISSIONER OBTAINS UNDER THIS SECTION. 15
(2) THE COMMISSIONER IS SUBJE CT TO TITLE 12, SUBTITLE 4 OF 16
THE STATE FINANCE AND PROCUREMENT ARTICLE FOR SERVICES CONTRACTED 17
UNDER SUBSECTION (C) OR (K) OF THIS SECTION. 18
(K) (1) TO THE EXTENT THE COMMISSIONER DETERMIN ES THAT 19
SEPARATE PRIV ATE VENTURE FUNDS AR E NECESSARY TO ACCOM PLISH THE 20
PURPOSE OF THE PRIVA TE VENTURE FUND , THE COMMISSIONER MAY EXPE ND 21
FUNDS TO CHARTER AND ORGANIZE ADDITIONAL PRIVATE VENTURE FUND S. 22
(2) ANY ADDITIONAL PRIVAT E VENTURE FUNDS CHAR TERED AND 23
ORGANIZED UNDER THI S SUBSECTION ARE SUB JECT TO THE REQUIREM ENTS AND 24
LIMITATIONS OF THIS SECTION ON THE MARYLAND COMMUNITY INVESTMENT 25
VENTURE FUND UNDER SUBSECTION (B) OF THIS SECTION , INCLUDING THE 26
AGGREGATE EXPENSE AN D INVESTMENT LIMITAT IONS STATED IN SUBSE CTIONS (C) 27
THROUGH (F) OF THIS SECTION. 28
5–203. 29
(a) (1) IN THIS SECTION , UNLESS THE CONTEXT C LEARLY REQUIRES 30
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 31
6 HOUSE BILL 548
(2) “BRANCH” MEANS A DEPOSIT –TAKING OFFICE OF A B ANKING 1
INSTITUTION IN MARYLAND OTHER THAN T HE MAIN OFFICE AS DEFINED BY THE 2
FEDERAL DEPOSIT INSURANCE CORPORATION . 3
(3) “DE NOVO BRANCH ” HAS THE MEANING STAT ED IN § 5–1001 OF 4
THIS TITLE WITH RESP ECT TO A BANKING INS TITUTION. 5
(4) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 6
PERCENTAGE CHANGE OF DOMESTIC OFFICE DEPOSITS AS REPORTED DECEMBER 7
31 EACH YEAR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION IN THE 8
FEDERAL DEPOSIT INSURANCE CORPORATION QUARTERLY BANK PROFILE . 9
(5) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 10
BRANCH LOCATED IN A LOW– TO MODERATE–INCOME TRACT AS REPO RTED BY A 11
BANKING INSTITUTION TO THE FEDERAL DEPOSIT INSURANCE CORPORATION 12
EACH YEAR AS OF JUNE 30. 13
(6) “LOW– TO MODERATE –INCOME TRACT ” MEANS A CENSUS TRACT 14
DELINEATED BY THE U.S. BUREAU OF THE CENSUS IN THE MOST RE CENT 15
DECENNIAL CENSUS AS PUB LISHED BY THE FEDERAL FINANCIAL INSTITUTIONS 16
EXAMINATION COUNCIL THAT CORRESPO NDS TO LOW – TO MODERATE –INCOME 17
LEVEL CLASSIFICATION S AS DEFINED BY THE REGULATION OF THE FEDERAL 18
RESERVE BOARD IMPLEMENTING TH E FEDERAL COMMUNITY REINVESTMENT ACT, 19
12 C.F.R. 228.12. 20
(B) The Commissioner shall impose annual assessments on each banking 21
institution as provided in this section, to cover the expense of regulating banking 22
institutions. 23
[(b)] (C) (1) Except as provided in paragraph (2) of this subsection, the 24
Commissioner shall assess each banking institution the sum of: 25
(i) $8,000; plus 26
(ii) 1. 12 cents for each $1,000 of the assets of the institution over 27
$50,000,000, but not more than $250,000,000; 28
2. 10 cents for each $1,000 of assets over $250,000,000, but 29
not more than $500,000,000; 30
3. 9 cents for each $1,000 of assets over $500,000,000, but not 31
more than $1,000,000,000; 32
4. 8 cents for each $1,000 of assets over $1,000,000,000, but 33
not more than $10,000,000,000; and 34 HOUSE BILL 548 7
5. 7 cents for each $1,000 of assets over $10,000,000,000. 1
(2) If a banking institution is not in the business of accepting deposits or 2
retaining funds in a deposit account as defined in § 5–509 of this title, the Commissioner 3
shall assess the banking institution the sum of: 4
(i) $5,000; plus 5
(ii) 1. 0.3 cents for each $1,000 of managed assets held in a 6
fiduciary capacity up to $5,000,000,000; 7
2. 0.2 cents for each $1,000 of managed assets held in a 8
fiduciary capacity over $5,000,000,000, but not more than $20,000,000,000; 9
3. 0.1 cent for each $1,000 of managed assets held in a 10
fiduciary capacity over $20,000,000,000 up to $27,500,000,000; 11
4. 0.2 cents for each $1,000 of nonmanaged and custodial 12
assets held in a fiduciary capacity up to $5,000,000,000; and 13
5. 0.1 cent for each $1,000 of nonmanaged and custodial 14
assets held in a fiduciary capacity over $5,000,000,000 up to $20,000,000,000. 15
(3) The assessments shall be based on assets stated in a banking 16
institution’s most recent financial report. 17
(D) A WELL–CAPITALIZED BANKING INSTITUTION WITH A C OMPOSITE 18
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUES T FOR 19
AN ASSESSMENT OFFSET CREDIT OF: 20
(1) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOVO BRANCH 21
LOCATED IN A LOW– TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS AFTER 22
THE DATE THE BRANCH OPENED; OR 23
(2) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRA NCH LOCATED IN 24
A LOW– TO MODERATE –INCOME TRACT NOT TO EXCEED THE DEPOSIT G ROWTH CAP. 25
[(c)] (E) Notwithstanding subsection [(b)] (C) of this section, for a banking 26
institution with a composite CAMELS rating of 3, 4, or 5 for its most recent examination, 27
the annual assessment imposed under this section shall be increased by an additional 25%. 28
[(d)] (F) A banking institution shall pay the assessment imposed under this 29
section to the Commissioner on or before the April 15 after it is imposed. 30
(G) THE COMMISSIONER MAY DESI GNATE A SUCCESSOR IN DEX FOR: 31 8 HOUSE BILL 548
(1) THE LOW– TO MODERATE –INCOME TRACT IF THE FEDERAL 1
FINANCIAL INSTITUTIONS EXAMINATION COUNCIL TRACT INCOME LEVEL DATA IS 2
NO LONGER PUBLISHED ; OR 3
(2) THE DEPOSIT GROWTH CA P IF THE FEDERAL DEPOSIT 4
INSURANCE CORPORATION REPORT OF DOMESTIC OFFICE DEPO SITS IS NO LONGER 5
PUBLISHED. 6
6–712. 7
(a) (1) IN THIS SECTION, UNLESS THE CONTEXT C LEARLY REQUIRES 8
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 9
(2) “DE NOVO BRANCH ” MEANS A BRANCH OF A CREDIT UNION THAT 10
WAS ORIGINALLY ESTAB LISHED BY THE CREDIT UNION IN MARYLAND. 11
(3) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 12
PERCENTAGE CHANGE OF TOTAL SHARES AND DEP OSITS REPORTED DECEMBER 31 13
EACH YEAR BY FEDERAL LY INSURED CREDIT UN IONS TO THE NATIONAL CREDIT 14
UNION ADMINISTRATION AND PU BLISHED IN THE NATIONAL CREDIT UNION 15
ADMINISTRATION CALL REPORT AGGREGATE FINANCIAL PERFORMANCE 16
REPORTS. 17
(4) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 18
CREDIT UNION BRANCH LOCATED IN A LOW – TO MODERATE –INCOME TRACT AS 19
REPORTED BY A CREDIT UNION TO THE COMMISSIONER EACH YEA R AS OF JUNE 30. 20
(5) “LOW– TO MODERA TE–INCOME TRACT ” HAS THE MEANING 21
STATED IN § 5–203 OF THIS ARTICLE. 22
(B) This section applies only to a credit union with assets of $300,000 or greater. 23
[(b)] (C) (1) The Commissioner shall impose an annual assessment on each 24
credit union as provided in this subsection to cover the expense of regulating credit unions. 25
(2) The Commissioner shall assess each credit union the sum of: 26
(i) $1,000; and 27
(ii) 8 cents for each $1,000 of the assets of the credit union over 28
$1,000,000. 29
(3) The assessment shall be based on assets stated in the credit union’s 30 HOUSE BILL 548 9
most recent financial report. 1
(4) A WELL–CAPITALIZED CREDIT U NION WITH A COMPOSIT E 2
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUES T FOR 3
AN ASSESSMENT OFFSET CREDIT OF: 4
(I) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOVO 5
BRANCH LOCATED IN A LOW– TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS 6
AFTER THE DATE THE D E NOVO BRANCH OPENED ; OR 7
(II) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRA NCH 8
LOCATED IN A LOW – TO MODERATE–INCOME TRACT NOT TO EXCEED THE DEPOSIT 9
GROWTH CAP . 10
[(c)] (D) A credit union shall pay the assessment imposed under this section to 11
the Commissioner on or before the March 1 after the assessment is imposed. 12
(E) THE COMMISSIONER MAY DESI GNATE A SUC CESSOR INDEX FOR THE 13
DEPOSIT GROWTH CAP I F THE NATIONAL CREDIT UNION ADMINISTRATION CALL 14
REPORT AGGREGATE FINANCIAL PERFORMANCE REPORTS IS NO LONGER 15
PUBLISHED. 16
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 17
1, 2023. 18