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.
Italics indicate opposite chamber/conference committee amendments.
*sb0550*
SENATE BILL 550
I1 (3lr0090)
ENROLLED BILL
— Finance/Economic Matters —
Introduced by The President (By Request – Administration) and Senators
Augustine, Benson, Carter, Elfreth, Ellis, Feldman, Gile, Hayes, Hettleman,
Kagan, King, Hester, Jackson, Lam, McCray, Muse, Waldstreicher,
M. Washington, Watson, West, and Zucker Zucker, Beidle, Klausmeier, and
Griffith
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approv al this
_______ day of _______________ at ________________________ o’clock, ________M.
______________________________________________
President.
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 2 SENATE BILL 550
Investment Venture Fund and the assessment of banking institutions and credit 1
unions. 2
BY repealing and reenacting, with amendments, 3
Article – Financial Institutions 4
Section 2–118, 5–203, and 6–712 5
Annotated Code of Maryland 6
(2020 Replacement Volume and 2022 Supplement) 7
BY adding to 8
Article – Financial Institutions 9
Section 2–118.1 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2022 Supplement) 12
BY repealing and reenacting, without amendments, 13
Article – Financial Institutions 14
Section 5–101(a) and (b) 15
Annotated Code of Maryland 16
(2020 Replacement Volume and 2022 Supplement) 17
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 18
That the Laws of Maryland read as follows: 19
Article – Financial Institutions 20
2–118. 21
(a) In this section, “Fund” means the Banking Institution and Credit Union 22
Regulation Fund established under this section. 23
(b) There is a Banking Institution and Credit Union Regulation Fund that 24
consists of: 25
(1) All revenue received for the chartering and regulation of persons who 26
engage in the business of a banking institution or credit union under this article; and 27
(2) Any other fee, assessment, or revenue received by the Commissioner 28
from banking institutions and credit unions under this article. 29
(c) Notwithstanding subsection (b) of this section, the Commissioner shall pay all 30
fines and penalties collected by the Commissioner from banking institutions and credit 31
unions under this article into the General Fund of the State. 32
(d) The purpose of the Fund is to pay all the costs and expenses incurred by the 33
Commissioner that are related to the regulation of banking institutions and credit unions 34
under this article, including: 35 SENATE BILL 550 3
(1) Expenditures authorized under this article; [and] 1
(2) INVESTMENTS AUTHORIZE D UNDER § 2–118.1 OF THIS SUBTITLE ; 2
AND 3
[(2)] (3) Any other expense authorized in the State budget. 4
(e) (1) All the costs and expenses of the Commissioner relating to the 5
regulation of banking institutions and credit unions under this article shall be included in 6
the State budget. 7
(2) Any expenditures from the Fund to cover costs and expenses of the 8
Commissioner may be made only: 9
(i) By an appropriation from the Fund approved by the General 10
Assembly in the annual State budget; or 11
(ii) By the budget amendment procedure provided for in § 7–209 of 12
the State Finance and Procurement Article. 13
(3) If, in any given fiscal year, the amount of the revenue collected by the 14
Commissioner and deposited into the Fund exceeds the actual appropriation for the 15
Commissioner to regulate banking institutions and credit unions under this article, the 16
excess amount shall be carried forward within the Fund. 17
(f) (1) The State Treasurer is the custodian of the Fund. 18
(2) The State Treasurer shall deposit payments received from the 19
Commissioner into the Fund. 20
(g) (1) The Fund is a continuing, nonlapsing fund that is not subject to § 21
7–302 of the State Finance and Procurement Article, and may not be deemed a part of the 22
General Fund of the State. 23
(2) Unless otherwise provided by law, no part of the Fund may revert or be 24
credited to: 25
(i) The General Fund of the State; or 26
(ii) A special fund of the State. 27
2–118.1. 28
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 29
INDICATED. 30 4 SENATE BILL 550
(2) “FUND” MEANS THE MARYLAND COMMUNITY INVESTMENT 1
VENTURE FUND. 2
(2) (3) “LOW– TO MODERATE –INCOME TRACT ” HAS THE MEANING 3
STATED IN § 5–203 OF THIS ARTICLE. 4
(3) “PRIVATE VENTURE FUND ” MEANS THE SEPARATE E NTITY OR 5
ENTITIES CHARTERED I N ACCORDANCE WITH SU BSECTIONS (B) AND (K) (J) OF THIS 6
SECTION. 7
(B) (1) THE COMMISSIONER MAY INVE ST IN THERE IS A MARYLAND 8
COMMUNITY INVESTMENT VENTURE FUND. 9
(2) THE MARYLAND COMMUNITY INVESTMENT VENTURE FUND IS A 10
PRIVATE VENTURE FUND THAT IS A SEPARATELY CHAR TERED EQUITY FUND US ING 11
BOTH: 12
(I) IS AN INSTRUMENTALITY OF THE STATE; AND 13
(II) USES PUBLIC AND PRIVATE I NVESTMENT FUNDS . 14
(3) (C) (1) THE SUBJECT TO PARAGRAPH (2) OF THIS 15
SUBSECTION, THE PURPOSE OF THE PRIVATE VENTURE FUND FUND IS TO DEVELOP 16
OPPORTUNITIES FOR BA NKING INSTITUTIONS A ND CREDIT UNIONS TO BETTER 17
SERVE THE NEEDS OF L OW– TO MODERATE –INCOME TRACTS BY : 18
(I) INVESTING IN THE DEVE LOPMENT OF F INANCIAL PRODUCT 19
OR FINANCIAL PRODUCT UNDERWRITING INNOVAT IONS THAT WILL ENHANCE 20
ACCESS TO CAPITAL , FUNDING, AND OTHER FINANCIAL SERVICES FOR BUSINES SES 21
IN LOW– TO MODERATE –INCOME TRACTS IN MARYLAND THE STATE; 22
(II) DEPLOYING, TESTING, AND EVALUATING THESE THE 23
INNOVATIONS FOR PROV IDING CAPITAL AND FU NDING TO BUSINESSES IN LOW– TO 24
MODERATE–INCOME TRACTS IN MARYLAND THE STATE; AND 25
(III) PROMOTING AND MAKING THESE THE INNOVATIONS 26
AVAILABLE TO A VARIETY OF BANKING INSTITUTIONS AND CREDIT UNIONS FO R USE 27
IN ENHANCING ACCESS TO CAPITAL, FUNDING, AND OTHER FINANCIAL SERVICES 28
FOR BUSINESSES IN LO W– TO MODERATE –INCOME TRACTS IN MARYLAND THE 29
STATE. 30
SENATE BILL 550 5
(2) WITH THE APPROVAL OF THE COMMISSIONER , THE PURPOSE OF 1
THE FUND MAY BE ALTERED I N A MANNER THAT IS C ONSISTENT WITH THE I NTENT 2
AND REQUIREMENTS OF THIS SECTION. 3
(D) (1) (I) THE COMMISSIONER SHALL ES TABLISH A GOVERNANCE 4
STRUCTURE FOR THE FUND. 5
(II) THE COMMISSIONER MAY COLL ABORATE WITH INVESTO RS 6
IN THE FUND WHEN ESTABLISHING THE GOVERNANCE STRUCTURE . 7
(2) THE COMMISSIONER , OR THE COMMISSIONER ’S DESIGNEE, SHALL 8
SERVE ON THE GOVERNI NG BODY OF THE FUND. 9
(C) (E) (1) THE COMMISSIONER MAY EXPEND USE UP TO $250,000 10
FROM THE BANKING INSTITUTION AND CREDIT UNION REGULATION FUND 11
ESTABLISHED UNDER § 2–118 OF THIS SUBTITLE TO COVER THE EXPENSES 12
ASSOCIATED WITH CHARTERING AND ORGANIZING THE PRIVA TE VENTURE FUND 13
ESTABLISHING THE FUND, INCLUDING ACCOUNTING , ADVISORY, THIRD–PARTY 14
SERVICE PROVIDER , MARKETING, AND OTHER NECESSARY EXPENSES. 15
(D) (2) TO ENCOURAGE PRIVATE INVESTMENT, THE COMMISSIONER MAY 16
PROVIDE THE AN INITIAL EQUITY CAPIT AL INVESTMENT IN THE PRIVATE VENTURE 17
FUND FUND IN AN AMOUNT UP TO $2,500,000 FROM THE BANKING INSTITUTION 18
AND CREDIT UNION REGULATION FUND. 19
(E) (F) (1) THROUGH JUNE 30, 2028, THE COMMISSIONER MAY MATC H 20
ANY AN INVESTMENT MADE IN T HE PRIVATE VENTURE FUND FUND BY A BANKING 21
INSTITUTION OR CREDI T UNION UP TO THE AM OUNT OF THE ASSESSME NT CREDIT 22
EARNED BY THAT THE BANKING INSTITUTION OR CREDIT UNION UNDER IN 23
ACCORDANCE WITH § 5–203(C) § 5–203(D) OR § 6–712(C)(4) OF THIS ARTICLE. 24
(F) (2) THE COMMISSIONER MAY NOT MAKE ANY FURTHER 25
INVESTMENTS AN INVESTMENT IN THE PRIVATE VENTURE FUND FUND AFTER JUNE 26
30, 2028. 27
(G) ANY AND ALL ALL INVESTMENT RETURNS O R RETURN OF CAPITAL 28
FROM THE PRIVATE VENTURE FUND FUND WITH RESPECT TO ANY AN INVESTMENT 29
AUTHORIZED BY THE COMMISSIONER SHALL BE THE PROPERTY OF CREDITED TO 30
THE BANKING INSTITUTION AND CREDIT UNION REGULATION FUND. 31
(H) (1) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 32
COMMISSIONER MAY NEGO TIATE APPROPRIATE GO VERNANCE STRUCTURES FOR 33
THE PRIVATE VENTURE FUND WITH OTHER INVESTORS . 34
6 SENATE BILL 550
(2) THE COMMISSIONER OR A REP RESENTATIVE OF THE 1
COMMISSIONER SHALL AL WAYS SERVE ON THE BO DY GOVERNING THE PRI VATE 2
VENTURE FUND . 3
(3) (I) THE PURPOSE OF THE PR IVATE VENTURE FUND M AY NOT BE 4
ALTERED OR AMENDED WITHOUT THE CONSENT OF THE COMMISSIONER . 5
(II) ANY ALTERED OR AMENDE D PURPOSE MUST REMAI N 6
CONSISTENT WITH THIS SECTION. 7
(I) (H) AT THE DIRECTION OF T HE COMMISSIONER , AND IN ADDITION TO 8
ANY CUSTOMARY AND AP PROPRIATE AUDITS OF THE FUND FUND, THE PRIVATE 9
VENTURE FUND GOVERNING BODY OF TH E FUND SHALL BE REQUIRED TO ENGAG E 10
OBTAIN THE SERVICES OF AN INDEPENDENT THIRD PARTY DESIGNATED BY THE 11
COMMISSIONER ON AN AN NUAL BASIS TO EVALUA TE WHETHER ALL THE 12
INVESTMENTS MEET THE CRITERIA ES TABLISHED BY MADE TO THE FUND COMPLY 13
WITH THIS SECTION. 14
(J) (1) EXCEPT AS PROVIDED IN PARAGRAPH (2) OF THIS SUBSECTION , 15
DIVISION II OF THE STATE FINANCE AND PROCUREMENT ARTICLE DOES NOT 16
APPLY TO A SERVICE T HAT THE COMMISSIONER OBTAINS UNDER THIS SECTION . 17
(2) THE COMMISSIONER IS SUBJECT TO TITLE 12, SUBTITLE 4 OF 18
THE STATE FINANCE AND PROCUREMENT ARTICLE FOR SERVICES CONTRACTED 19
UNDER SUBSECTION (C) OR (K) OF THIS SECTION. 20
(K) (J) (I) (1) TO THE EXTENT IF THE COMMISSIONER DETERMIN ES THAT 21
SEPARATE PRIVATE VEN TURE FUNDS ARE NECES SARY TO ACCOMPLISH T HE 22
PURPOSE OF THE PRIVATE VENTURE FUND FUND, THE COMMISSIONER MAY EXPEND 23
FUNDS USE MONEY FROM THE FUND TO CHARTER AND ORGANIZE ESTABLISH 24
ADDITIONAL PRIVATE V ENTURE FUNDS. 25
(2) ANY AN ADDITIONAL PRIVATE V ENTURE FUNDS CHARTERED AND 26
ORGANIZED UNDER FUND ESTABLISHED IN ACCORDANCE WITH THIS SUBSECTION 27
ARE SUBJECT TO THE REQUIREMENTS AND LIMITATIONS OF THIS SECTION ON THE 28
MARYLAND COMMUNITY INVESTMENT VENTURE FUND UNDER SUBSECTION (B) OF 29
THIS SECTION, INCLUDING THE AGGREGATE EXPENSE AN D INVESTMENT 30
LIMITATIONS STATED I N SUBSECTIONS (C) THROUGH (F) OF THIS SECTION SHALL 31
COMPLY WITH THE REQU IREMENTS OF SUBSECTI ONS (B) THROUGH (F) OF THIS 32
SECTION. 33
5–101. 34
(a) In this title the following words have the meanings indicated. 35 SENATE BILL 550 7
(b) “CAMELS” means the composite rating adopted by the federal Financial 1
Institutions Examination Council to evaluate the adequacy of capital, quality of assets, 2
capability of management, quality and level of earnings, adequacy of liquidity, and 3
sensitivity to market risk. 4
5–203. 5
(a) (1) IN THIS SECTION , UNLESS THE CONTEXT C LEARLY REQUIRES 6
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 7
(2) “BRANCH” MEANS A DEPOSIT –TAKING OFFICE OF A B ANKING 8
INSTITUTION IN MARYLAND OTHER THAN THE MAIN OFFICE AS DEFINED BY THE 9
FEDERAL DEPOSIT INSURANCE CORPORATION . 10
(3) “DE NOVO BRANCH ” HAS THE MEANING STAT ED IN § 5–1001 OF 11
THIS TITLE WITH RESPECT TO A BA NKING INSTITUTION . 12
(4) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 13
PERCENTAGE CHANGE OF DOMESTIC OFFICE DEPO SITS AS REPORTED ON 14
DECEMBER 31 EACH YEAR BY THE FEDERAL DEPOSIT INSURANCE CORPORATION 15
IN THE FEDERAL DEPOSIT INSURANCE CORPORATION QUARTERLY BANK PROFILE . 16
(5) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 17
BRANCH LOCATED IN A LOW– TO MODERATE –INCOME TRACT AS REPO RTED BY A 18
BANKING INSTITUTION TO THE FEDERAL DEPOSIT INSURANCE CORPORATION 19
EACH YEAR AS OF JUNE 30. 20
(6) “LOW– TO MODERATE –INCOME TRACT ” MEANS A CENSUS TRACT 21
DELINEATED BY THE U.S. BUREAU OF T HE CENSUS IN THE MOST RE CENT 22
DECENNIAL CENSUS AS PUBLISHED BY THE FEDERAL FINANCIAL INSTITUTIONS 23
EXAMINATION COUNCIL THAT CORRESPO NDS TO LOW – TO MODERATE –INCOME 24
LEVEL CLASSIFICATION S AS DEFINED BY THE REGULATION OF THE FEDERAL 25
RESERVE BOARD IMPLEMENTING TH E FEDERAL COMMUNITY REINVESTMENT ACT, 26
12 C.F.R. 228.12. 27
(B) The Commissioner shall impose annual assessments on each banking 28
institution as provided in this section, to cover the expense of regulating banking 29
institutions. 30
[(b)] (C) (1) Except as provided in paragraph (2) of this subsection, the 31
Commissioner shall assess each banking institution the sum of: 32
(i) $8,000; plus 33
8 SENATE BILL 550
(ii) 1. 12 cents for each $1,000 of the assets of the institution over 1
$50,000,000, but not more than $250,000,000; 2
2. 10 cents for each $1,000 of assets over $250,000,000, but 3
not more than $500,000,000; 4
3. 9 cents for each $1,000 of assets over $500,000,000, but not 5
more than $1,000,000,000; 6
4. 8 cents for each $1,000 of assets over $1,000,000,000, but 7
not more than $10,000,000,000; and 8
5. 7 cents for each $1,000 of assets over $10,000,000,000. 9
(2) If a banking institution is not in the business of accepting deposits or 10
retaining funds in a deposit account as defined in § 5–509 of this title, the Commissioner 11
shall assess the banking institution the sum of: 12
(i) $5,000; plus 13
(ii) 1. 0.3 cents for each $1,000 of managed assets held in a 14
fiduciary capacity up to $5,000,000,000; 15
2. 0.2 cents for each $1,000 of managed assets held in a 16
fiduciary capacity over $5,000,000,000, but not more than $20,000,000,000; 17
3. 0.1 cent for each $1,000 of managed assets held in a 18
fiduciary capacity over $20,000,000,000 up to $27,500,000,000; 19
4. 0.2 cents for each $1,000 of nonmanaged and custodial 20
assets held in a fiduciary capacity up to $5,000,000,000; and 21
5. 0.1 cent for each $1,000 of nonmanaged and custodial 22
assets held in a fiduciary capacity over $5,000,000,000 up to $20,000,000,000. 23
(3) The assessments shall be based on assets stated in a banking 24
institution’s most recent financial report. 25
(D) A WELL–CAPITALIZED BANKING INSTITUTION WITH A C OMPOSITE 26
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUES T FOR 27
AN ASSESSMENT OFFSET CREDIT OF: 28
(1) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOV O BRANCH 29
LOCATED IN A LOW – TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS AFTER 30
THE DATE THE BRANCH OPENED; OR 31
SENATE BILL 550 9
(2) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRA NCH LOCATED IN 1
A LOW– TO MODERATE –INCOME TRACT NOT TO EXCEED THE DEPOSIT G ROWTH CAP. 2
[(c)] (E) Notwithstanding subsection [(b)] (C) of this section, for a banking 3
institution with a composite CAMELS rating of 3, 4, or 5 for its most recent examination, 4
the annual assessment imposed under this section shall be increased by an additional 25%. 5
[(d)] (F) A banking institution shall pay the assessment imposed under this 6
section to the Commissioner on or before the April 15 after it is imposed. 7
(G) THE COMMISSIONER MAY DESI GNATE A SUCCESSOR IN DEX FOR: 8
(1) THE LOW– TO MODERATE–INCOME TRACT IF THE FEDERAL 9
FINANCIAL INSTITUTIONS EXAMINATION COUNCIL TRACT INCOME LEVEL DATA IS 10
NO LONGER PUBLISHED ; OR 11
(2) THE DEPOSIT GROWTH CA P IF THE FEDERAL DEPOSIT 12
INSURANCE CORPORATION REPORT OF DOMESTIC OFFICE DEPO SITS IS NO LONGER 13
PUBLISHED. 14
6–712. 15
(a) (1) IN THIS SECTION , UNLESS THE CONTEXT C LEARLY REQUIRES 16
OTHERWISE, THE FOLLOWING WORDS HAVE THE MEANINGS IN DICATED. 17
(2) “DE NOVO BRANCH ” MEANS A BRANCH OF A CREDIT UNION THAT 18
WAS ORIGINALLY ESTAB LISHED BY THE CREDIT UNION IN MARYLAND THE STATE. 19
(3) “DEPOSIT GROWTH CAP ” MEANS THE YEAR –OVER–YEAR 20
PERCENTAGE CHANGE OF TOTAL SHARES AND DEP OSITS REPORTED DECEMBER 31 21
EACH YEAR BY FEDERAL LY INSURED CREDIT UN IONS TO THE NATIONAL CREDIT 22
UNION ADMINISTRATION AND PU BLISHED IN THE NATIONAL CREDIT UNION 23
ADMINISTRATION CALL REPORT AGGREGATE FINANCIAL PERFORMANCE 24
REPORTS. 25
(4) “DEPOSITS” MEANS DEPOSITS ORIGI NATED AND HOUSED AT A 26
CREDIT UNION BRANCH LOCATED IN A LOW – TO MODERATE –INCOME TRACT AS 27
REPORTED BY A CREDIT UNION TO THE COMMISSIONE R EACH YEAR AS OF JUNE 30. 28
(5) “LOW– TO MODERATE –INCOME TRACT ” HAS THE MEANING 29
STATED IN § 5–203 OF THIS ARTICLE. 30
(B) This section applies only to a credit union with assets of $300,000 or greater. 31
10 SENATE BILL 550
[(b)] (C) (1) The Commissioner shall impose an annual assessment on each 1
credit union as provided in this subsection to cover the expense of regulating credit unions. 2
(2) The Commissioner shall assess each credit union the sum of: 3
(i) $1,000; and 4
(ii) 8 cents for each $1,000 of the assets of the credit union over 5
$1,000,000. 6
(3) The assessment shall be based on assets stated in the credit union’s 7
most recent financial report. 8
(4) A WELL–CAPITALIZED CREDIT U NION WITH A COMPOSIT E 9
CAMELS RATING OF 1 OR 2 MAY FILE WITH THE COMMISSIONER A REQUEST FOR 10
AN ASSESSMENT OFFSET CREDIT OF: 11
(I) 12 CENTS FOR EACH $1,000 OF DEPOSITS IN A DE NOVO 12
BRANCH LOCATED IN A LOW– TO MODERATE –INCOME TRACT FOR THE FIRST 5 YEARS 13
AFTER THE DATE THE D E NOVO BRANCH OPENED ; OR 14
(II) 6 CENTS FOR EACH $1,000 OF DEPOSITS IN A BRANCH 15
LOCATED IN A LOW – TO MODERATE –INCOME TRACT NOT TO EXCEED THE DEPOSIT 16
GROWTH CAP . 17
[(c)] (D) A credit union shall pay the assessment imposed under this section to 18
the Commissioner on or before the March 1 after the assessment is imposed. 19
(E) THE COMMISSIONER MAY DESI GNATE A SUCCESSOR IN DEX FOR THE 20
DEPOSIT GROWTH CAP I F THE NATIONAL CREDIT UNION ADMINISTRATION CALL 21
REPORT AGGREGATE FINANCIAL PERFORMANCE REPORTS IS NO LONGER 22
PUBLISHED. 23
SECTION 2. AND BE IT FURTHER ENACTED, That t his Act shall take effect July 24
1, 2023. 25