EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the law by
amendment.
*hb0548*
HOUSE BILL 548
I1 3lr0117
CF SB 550
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
Committee Report: Favorable with amendments
House action: Adopted
Read second time: March 11, 2023
CHAPTER ______
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 establishing the Maryland 5
Community Investment Venture Fund by the Commissioner of Financial Regulation 6
as an instrumentality of the State for certain purposes; providing for certain 7
assessment offset credits for certain banking institutions and credit unions that 8
establish de novo branches or maintain branches in certain areas; authorizing the 9
use of the Banking Institution and Credit Union Regulation Fund for certain 10
purposes; and generally relating to financial regulation the Maryland Community 11
Investment Venture Fund and the assessment of banking institutions and credit 12
unions. 13
BY repealing and reenacting, with amendments, 14
Article – Financial Institutions 15
Section 2–118, 5–203, and 6–712 16 2 HOUSE BILL 548
Annotated Code of Maryland 1
(2020 Replacement Volume and 2022 Supplement) 2
BY adding to 3
Article – Financial Institutions 4
Section 2–118.1 5
Annotated Code of Maryland 6
(2020 Replacement Volume and 2022 Supplement) 7
BY repealing and reenacting, without amendments, 8
Article – Financial Institutions 9
Section 5–101(a) and (b) 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2022 Supplement) 12
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14
Article – Financial Institutions 15
2–118. 16
(a) In this section, “Fund” means the Banking Institution and Credit Union 17
Regulation Fund established under this section. 18
(b) There is a Banking Institution and Credit Union Regulation Fund that 19
consists of: 20
(1) All revenue received for the chartering and regulation of persons who 21
engage in the business of a banking institution or credit union under this article; and 22
(2) Any other fee, assessment, or revenue received by the Commissioner 23
from banking institutions and credit unions under this article. 24
(c) Notwithstanding subsection (b) of this section, the Commissioner shall pay all 25
fines and penalties collected by the Commissioner from banking institutions and credit 26
unions under this article into the General Fund of the State. 27
(d) The purpose of the Fund is to pay all the costs and expenses incurred by the 28
Commissioner that are related to the regulation of banking institutions and credit unions 29
under this article, including: 30
(1) Expenditures authorized under this article; [and] 31
(2) INVESTMENTS AUTHORIZE D UNDER § 2–118.1 OF THIS SUBTITL E; 32
AND 33
HOUSE BILL 548 3
[(2)] (3) Any other expense authorized in the State budget. 1
(e) (1) All the costs and expenses of the Commissioner relating to the 2
regulation of banking institutions and credit unions under this article shall be included in 3
the State budget. 4
(2) Any expenditures from the Fund to cover costs and expenses of the 5
Commissioner may be made only: 6
(i) By an appropriation from the Fund approved by the General 7
Assembly in the annual State budget; or 8
(ii) By the budget amendment procedure provided for in § 7–209 of 9
the State Finance and Procurement Article. 10
(3) If, in any given fiscal year, the amount of the revenue collected by the 11
Commissioner and deposited into the Fund exceeds the actual appropriation for the 12
Commissioner to regulate banking institutions and credit unions under this article, the 13
excess amount shall be carried forward within the Fund. 14
(f) (1) The State Treasurer is the custodian of the Fund. 15
(2) The State Treasurer shall deposit payments received from the 16
Commissioner into the Fund. 17
(g) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 18
7–302 of the State Finance and Procurement Article, and may not be deemed a part of the 19
General Fund of the State. 20
(2) Unless otherwise provided by law, no part of the Fund may revert or be 21
credited to: 22
(i) The General Fund of the State; or 23
(ii) A special fund of the State. 24
2–118.1. 25
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 26
INDICATED. 27
(2) “FUND” MEANS THE MARYLAND COMMUNITY INVESTMENT 28
VENTURE FUND. 29
(2) (3) “LOW– TO MODERATE –INCOME TRACT ” HAS THE MEANING 30
STATED IN § 5–203 OF THIS ARTICLE. 31 4 HOUSE BILL 548
(3) “PRIVATE VENTURE FUND ” MEANS THE SEPARATE E NTITY OR 1
ENTITIES CHARTERED I N ACCORDANCE WITH SU BSECTIONS (B) AND (K) OF THIS 2
SECTION. 3
(B) (1) THE COMMISSIONER MAY INVE ST IN THERE IS A MARYLAND 4
COMMUNITY INVESTMENT VENTURE FUND. 5
(2) THE MARYLAND COMMUNITY INVESTMENT VENTURE FUND IS A 6
PRIVATE VENTURE FUND THAT IS A SEPARATELY CHAR TERED EQUITY FUND US ING 7
BOTH: 8
(I) IS AN INSTRUMENTALITY OF THE STATE; AND 9
(II) USES PUBLIC AND PRIVATE I NVESTMENT FUNDS . 10
(3) (C) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS 11
SUBSECTION, THE PURPOSE OF THE PRIVATE VENTURE FUND FUND IS TO DEVELOP 12
OPPORTUNITIES FOR BA NKING INSTITUTIONS AND CRE DIT UNIONS TO BETTER 13
SERVE THE NEEDS OF L OW– TO MODERATE –INCOME TRACTS BY : 14
(I) INVESTING IN THE DEVE LOPMENT OF FINANCIAL PRODUCT 15
OR FINANCIAL PRODUCT UNDERWRITING INNOVAT IONS THAT WILL ENHANCE 16
ACCESS TO CAPITAL , FUNDING, AND OTHER F INANCIAL SERVICES FO R BUSINESSES 17
IN LOW– TO MODERATE –INCOME TRACTS IN MARYLAND THE STATE; 18
(II) DEPLOYING, TESTING, AND EVALUATING THESE THE 19
INNOVATIONS FOR PROV IDING CAPITAL AND FU NDING TO BUSINESSES IN LOW– TO 20
MODERATE–INCOME TRACTS IN MARYLAND THE STATE; AND 21
(III) PROMOTING AND MAKING THESE THE INNOVATIONS 22
AVAILABLE TO A VARIETY OF BANKING INSTITUTIONS AND CREDIT UNIONS FO R USE 23
IN ENHANCING ACCESS TO CAPITAL, FUNDING, AND OTHER FINANCIAL SERVICES 24
FOR BUSINESSES IN LO W– TO MODERATE –INCOME TRACTS IN MARYLAND THE 25
STATE. 26
(2) WITH THE APPROVAL OF THE COMMISSIONER , THE PURPOSE OF 27
THE FUND MAY BE ALTERED I N A MANNER THAT IS C ONSISTENT WITH THE I NTENT 28
AND REQUIREMENTS OF THIS SECTION. 29
(D) (1) (I) THE COMMISSIONER SHALL ES TABLISH A GOVERNANCE 30
STRUCTURE FOR THE FUND. 31
HOUSE BILL 548 5
(II) THE COMMISSIONER MAY COLL ABORATE WITH INVESTO RS 1
IN THE FUND WHEN ESTABLISHING THE GOVERNANCE STRUCTURE . 2
(2) THE COMMISSIONER , OR THE COMMISSIONER ’S DESIGNEE , 3
SHALL SERVE ON THE G OVERNING BODY OF THE FUND. 4
(C) (E) (1) THE COMMISSIONER MAY EXPEND USE UP TO $250,000 5
FROM THE BANKING INSTITUTION AND CREDIT UNION REGULATION FUND 6
ESTABLISHED UNDER § 2–118 OF THIS SUBTITLE TO COVER THE EXPENSES 7
ASSOCIATED WITH CHARTERING AND ORGANIZING THE PRIVA TE VENTURE FUND 8
ESTABLISHING THE FUND, INCLUDING ACCOUNTING , ADVISORY, THIRD–PARTY 9
SERVICE PROVIDER , MARKETING, AND OTHER NECESSARY EXPENSES . 10
(D) (2) TO ENCOURAGE PRIVATE INVESTMENT, THE COMMISSIONER MAY 11
PROVIDE THE AN INITIAL EQUITY CAPIT AL INVESTMENT IN THE PRIVATE VENTURE 12
FUND FUND IN AN AMOUNT UP TO $2,500,000 FROM THE BANKING INSTITUTION 13
AND CREDIT UNION REGULATION FUND. 14
(E) (F) (1) THROUGH JUNE 30, 2028, THE COMMISSIONER MAY MATC H 15
ANY AN INVESTMENT MADE IN T HE PRIVATE VENTURE FUND FUND BY A BANKING 16
INSTITUTION OR CREDI T UNION UP TO THE AM OUNT OF THE ASSESSME NT CREDIT 17
EARNED BY THAT THE BANKING INSTITUTION OR CREDIT UNION UNDER IN 18
ACCORDANCE WITH § 5–203(C) OR § 6–712(C)(4) OF THIS ARTICLE. 19
(F) (2) THE COMMISSIONER MAY NOT MAKE ANY FURTHER 20
INVESTMENTS AN INVESTMENT IN THE PRIVATE VENTURE FUND FUND AFTER JUNE 21
30, 2028. 22
(G) ANY AND ALL ALL INVESTMENT RETURNS O R RETURN OF CAPITAL 23
FROM THE PRIVATE VENTURE FUND FUND WITH RESPECT TO ANY AN INVESTMENT 24
AUTHORIZED BY THE COMMISSIONER SHALL BE THE PROPERTY OF CREDITED TO 25
THE BANKING INSTITUTION AND CREDIT UNION REGULATION FUND. 26
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 27
COMMISSIONER MAY NEGO TIATE APPROPRIATE GO VERNANCE STRUCTURES FOR 28
THE PRIVATE VENTURE FUND WITH OTHER INVE STORS. 29
(2) THE COMMISSIONER OR A REP RESENTATIVE OF THE 30
COMMISSIONER SHALL AL WAYS SERVE ON THE BO DY GOVERNING THE PRIVAT E 31
VENTURE FUND . 32
(3) (I) THE PURPOSE OF THE PR IVATE VENTURE FUND M AY NOT BE 33
ALTERED OR AMENDED W ITHOUT THE CONSENT O F THE COMMISSIONER . 34
6 HOUSE BILL 548
(II) ANY ALTERED OR AMENDE D PURPOSE MUST REMAI N 1
CONSISTENT WITH THIS SECTION. 2
(I) (H) AT THE DIRECTION OF T HE COMMISSIONER , AND IN ADDITION TO 3
ANY CUSTOMARY AND AP PROPRIATE AUDITS OF THE FUND FUND, THE PRIVATE 4
VENTURE FUND GOVERNING BODY OF TH E FUND SHALL BE REQUIRED TO ENGAG E 5
OBTAIN THE SERVICES OF AN INDEPENDENT THIRD PARTY DESIGNATED BY THE 6
COMMISSIONER ON AN AN NUAL BASIS TO EVALUA TE WHETHER ALL THE 7
INVESTMENTS MEET THE CRITERIA ES TABLISHED BY MADE TO THE FUND COMPLY 8
WITH THIS SECTION. 9
(J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 10
DIVISION II OF THE STATE FINANCE AND PROCUREMENT ARTICLE DOES NOT 11
APPLY TO A SERVICE T HAT THE COMMISSIONER OBTAINS UNDER THIS SECTION . 12
(2) THE COMMISSIONER IS SUBJE CT TO TITLE 12, SUBTITLE 4 OF 13
THE STATE FINANCE AND PROCUREMENT ARTICLE FOR SERVICES CONTRACTED 14
UNDER SUBSECTION (C) OR (K) OF THIS SECTION. 15
(K) (I) (1) TO THE EXTENT IF THE COMMISSIONER DETERMIN ES THAT 16
SEPARATE PRIVATE VEN TURE FUNDS ARE NECES SARY TO ACCOMPLISH T HE 17
PURPOSE OF THE PRIVATE VENTURE FUND FUND, THE COMMISSIONER MAY EXPEND 18
FUNDS USE MONEY FROM THE FUND TO CHARTER AND ORGANIZE ESTABLISH 19
ADDITIONAL PRIVATE V ENTURE FUNDS. 20
(2) ANY AN ADDITIONAL PRIVATE V ENTURE FUNDS CHARTERED AND 21
ORGANIZED UNDER FUND ESTABLISHED IN ACCORDANCE WITH THIS SUBSECTION 22
ARE SUBJECT TO THE REQUIREMENTS AND LIMITATIONS OF THIS SECTION ON THE 23
MARYLAND COMMUNITY INVESTMENT VENTURE FUND UNDER SUBSECTION (B) OF 24
THIS SECTION , INCLUDING THE AGGREGATE EXPENSE AN D INVESTMENT 25
LIMITATIONS STATED I N SUBSECTIONS (C) THROUGH (F) OF THIS SECTION SHALL 26
COMPLY WITH THE REQU IREMENTS OF SUBSECTI ONS (B) THROUGH (F) OF THIS 27
SECTION. 28
5–101. 29
(a) In this title the following words have the meanings indicated. 30
(b) “CAMELS” means the composite rating adopted by the federal Financial 31
Institutions Examination Council to evaluate the adequacy of capital, quality of assets, 32
capability of management, quality and level of earnings, adequacy of liquidity, and 33
sensitivity to market risk. 34
5–203. 35
HOUSE BILL 548 7
(a) (1) IN THIS SECTION , UNLESS THE CONTEXT C LEARLY REQUIRES 1
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 2
(2) “BRANCH” MEANS A DEPOSIT –TAKING OFFICE OF A B ANKING 3
INSTITUTION IN MARYLAND OTHER THAN THE MAIN OFFICE AS DEFIN ED BY THE 4
FEDERAL DEPOSIT INSURANCE CORPORATION . 5
(3) “DE NOVO BRANCH ” HAS THE MEANING STAT ED IN § 5–1001 OF 6
THIS TITLE WITH RESPECT TO A BA NKING INSTITUTION . 7
(4) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 8
PERCENTAGE CHANGE OF DOMESTIC OFFICE DEPO SITS AS REPORTED ON 9
DECEMBER 31 EACH YEAR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 10
IN THE FEDERAL DEPOSIT INSURANCE CORPORATION QUARTERLY BANK PROFILE . 11
(5) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 12
BRANCH LOCATED IN A LOW– TO MODERATE–INCOME TRACT AS REPO RTED BY A 13
BANKING INSTITUTION TO THE FEDERAL DEPOSIT INSURANCE CORPORATION 14
EACH YEAR AS OF JUNE 30. 15
(6) “LOW– TO MODERATE –INCOME TRACT ” MEANS A CENSUS TRACT 16
DELINEATED BY THE U.S. BUREAU OF THE CENSUS IN THE MOST RE CENT 17
DECENNIAL CENSUS AS PUBL ISHED BY THE FEDERAL FINANCIAL INSTITUTIONS 18
EXAMINATION COUNCIL THAT CORRESPO NDS TO LOW – TO MODERATE –INCOME 19
LEVEL CLASSIFICATION S AS DEFINED BY THE REGULATION OF THE FEDERAL 20
RESERVE BOARD IMPLEMENTING TH E FEDERAL COMMUNITY REINVESTMENT ACT, 21
12 C.F.R. 228.12. 22
(B) The Commissioner shall impose annual assessments on each banking 23
institution as provided in this section, to cover the expense of regulating banking 24
institutions. 25
[(b)] (C) (1) Except as provided in paragraph (2) of this subsection, the 26
Commissioner shall assess each banking institution the sum of: 27
(i) $8,000; plus 28
(ii) 1. 12 cents for each $1,000 of the assets of the institution over 29
$50,000,000, but not more than $250,000,000; 30
2. 10 cents for each $1,000 of assets over $250,000,000, but 31
not more than $500,000,000; 32
3. 9 cents for each $1,000 of assets over $500,000,000, but not 33
more than $1,000,000,000; 34 8 HOUSE BILL 548
4. 8 cents for each $1,000 of assets over $1,000,000,000, but 1
not more than $10,000,000,000; and 2
5. 7 cents for each $1,000 of assets over $10,000,000,000. 3
(2) If a banking institution is not in the business of accepting deposits or 4
retaining funds in a deposit account as defined in § 5–509 of this title, the Commissioner 5
shall assess the banking institution the sum of: 6
(i) $5,000; plus 7
(ii) 1. 0.3 cents for each $1,000 of managed assets held in a 8
fiduciary capacity up to $5,000,000,000; 9
2. 0.2 cents for each $1,000 of managed assets held in a 10
fiduciary capacity over $5,000,000,000, but not more than $20,000,000,000; 11
3. 0.1 cent for each $1,000 of managed assets held in a 12
fiduciary capacity over $20,000,000,000 up to $27,500,000,000; 13
4. 0.2 cents for each $1,000 of nonmanaged and custodial 14
assets held in a fiduciary capacity up to $5,000,000,000; and 15
5. 0.1 cent for each $1,000 of nonmanaged and custodial 16
assets held in a fiduciary capacity over $5,000,000,000 up to $20,000,000,000. 17
(3) The assessments shall be based on assets stated in a banking 18
institution’s most recent financial report. 19
(D) A WELL–CAPITALIZED BANKING INSTITUTION WITH A C OMPOSITE 20
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUES T FOR 21
AN ASSESSMENT OFFSET CREDIT OF: 22
(1) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOVO BRANCH 23
LOCATED IN A LOW– TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS AFTER 24
THE DATE THE BRANCH OPENED; OR 25
(2) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRA NCH LOCATED IN 26
A LOW– TO MODERATE –INCOME TRACT NOT TO EXCEED THE DEPOSIT G ROWTH CAP. 27
[(c)] (E) Notwithstanding subsection [(b)] (C) of this section, for a banking 28
institution with a composite CAMELS rating of 3, 4, or 5 for its most recent examination, 29
the annual assessment imposed under this section shall be increased by an additional 25%. 30
HOUSE BILL 548 9
[(d)] (F) A banking institution shall pay the assessment imposed under this 1
section to the Commissioner on or before the April 15 after it is imposed. 2
(G) THE COMMISSIONER MAY DESI GNATE A SUCCESSOR IN DEX FOR: 3
(1) THE LOW– TO MODERATE –INCOME TRACT IF THE FEDERAL 4
FINANCIAL INSTITUTIONS EXAMINATION COUNCIL TRACT INCOME LEVEL DATA IS 5
NO LONGER PUBLISHED ; OR 6
(2) THE DEPOSIT GROWTH CA P IF THE FEDERAL DEPOSIT 7
INSURANCE CORPORATION REPORT OF DOMESTIC OFFICE DEPO SITS IS NO LONGER 8
PUBLISHED. 9
6–712. 10
(a) (1) IN THIS SECTION , UNLESS THE CONTEXT C LEARLY REQUIRES 11
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 12
(2) “DE NOVO BRANCH ” MEANS A BRANCH OF A CREDIT UNION THAT 13
WAS ORIGINALLY ESTAB LISHED BY THE CREDIT UNION IN MARYLAND THE STATE. 14
(3) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 15
PERCENTAGE CHANGE OF TOTAL SHARES AND DEP OSITS REPORTED DECEMBER 31 16
EACH YEAR BY FEDERAL LY INSURED CREDIT UN IONS TO THE NATIONAL CREDIT 17
UNION ADMINISTRATION AND PU BLISHED IN THE NATIONAL CREDIT UNION 18
ADMINISTRATION CALL REPORT AGGREGATE FINANCIAL PERFORMANCE 19
REPORTS. 20
(4) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 21
CREDIT UNION BRANCH LOCATED IN A LOW – TO MODERATE –INCOME TRACT AS 22
REPORTED BY A CREDIT UNION TO THE COMMISSIONER EACH YEA R AS OF JUNE 30. 23
(5) “LOW– TO MODER ATE–INCOME TRACT ” HAS THE MEANING 24
STATED IN § 5–203 OF THIS ARTICLE. 25
(B) This section applies only to a credit union with assets of $300,000 or greater. 26
[(b)] (C) (1) The Commissioner shall impose an annual assessment on each 27
credit union as provided in this subsection to cover the expense of regulating credit unions. 28
(2) The Commissioner shall assess each credit union the sum of: 29
(i) $1,000; and 30
10 HOUSE BILL 548
(ii) 8 cents for each $1,000 of the assets of the credit union over 1
$1,000,000. 2
(3) The assessment shall be based on assets stated in the credit union’s 3
most recent financial report. 4
(4) A WELL–CAPITALIZED CREDIT U NION WITH A COMPOSIT E 5
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUES T FOR 6
AN ASSESSMENT OFFSET CREDIT OF: 7
(I) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOVO 8
BRANCH LOCATED IN A LOW– TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS 9
AFTER THE DATE THE D E NOVO BRANCH OPENED ; OR 10
(II) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRA NCH 11
LOCATED IN A LOW – TO MODERATE–INCOME TRACT NOT TO EXCEED THE DEPOSIT 12
GROWTH CAP . 13
[(c)] (D) A credit union shall pay the assessment imposed under this section to 14
the Commissioner on or before the March 1 after the assessment is imposed. 15
(E) THE COMMISSIONER MAY DESI GNATE A SUCCESSOR INDEX FOR THE 16
DEPOSIT GROWTH CAP I F THE NATIONAL CREDIT UNION ADMINISTRATION CALL 17
REPORT AGGREGATE FINANCIAL PERFORMANCE REPORTS IS NO LONGER 18
PUBLISHED. 19
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 20
1, 2023. 21
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.