EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*sb0929*
SENATE BILL 929
I1 3lr2920
CF HB 379
By: Senator Griffith
Introduced and read first time: February 16, 2023
Assigned to: Rules
A BILL ENTITLED
AN ACT concerning 1
Commissioner of Financial Regulation – Name and Organization of Office 2
FOR the purpose of establishing the name of a certain office under the Commissioner of 3
Financial Regulation in the Maryland Department of Labor as the Office of Financial 4
Regulation; designating a certain appointee of the Commissioner of Financial 5
Regulation as the Deputy Commissioner for Depository Activities; requiring the 6
Commissioner of Financial Regulation to appoint a Deputy Commissioner for 7
Non–Depository Activities; and generally relating to the name and organization of 8
the office under the Commissioner of Financial Regulation in the Maryland 9
Department of Labor. 10
BY repealing and reenacting, with amendments, 11
Article – Business Regulation 12
Section 7–201 13
Annotated Code of Maryland 14
(2015 Replacement Volume and 2022 Supplement) 15
BY repealing and reenacting, without amendments, 16
Article – Financial Institutions 17
Section 1–101 18
Annotated Code of Maryland 19
(2020 Replacement Volume and 2022 Supplement) 20
BY repealing and reenacting, with amendments, 21
Article – Financial Institutions 22
Section 2–101, 2–103, 2–110, 2–113(c), 2–119, 11–611, and 12–105.1(a)(5) 23
Annotated Code of Maryland 24
(2020 Replacement Volume and 2022 Supplement) 25
BY repealing and reenacting, with amendments, 26
Article – Real Property 27 2 SENATE BILL 929
Section 7–105.14(i)(1) 1
Annotated Code of Maryland 2
(2015 Replacement Volume and 2022 Supplement) 3
BY repealing and reenacting, with amendments, 4
Article – State Government 5
Section 8–403(22) 6
Annotated Code of Maryland 7
(2021 Replacement Volume and 2022 Supplement) 8
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 9
That the Laws of Maryland read as follows: 10
Article – Business Regulation 11
7–201. 12
There is a State Collection Agency Licensing Board in the Offi ce of [the 13
Commissioner of] Financial Regulation in the Department. 14
Article – Financial Institutions 15
1–101. 16
(a) In this article, unless the context clearly requires otherwise, the following 17
words have the meanings indicated. 18
(b) “Address” means post office address, including, if applicable, street and 19
number, municipal area or county, state, and, if outside of the United States, country. 20
(c) “Any state” means: 21
(1) Any state, possession, or territory of the United States; 22
(2) The District of Columbia; or 23
(3) The Commonwealth of Puerto Rico. 24
(d) “Banking institution” means an institution that is incorporated under the 25
laws of this State as a State bank, trust company, or savings bank. 26
(e) “Charter” has the meaning stated in § 1–101 of the Corporations and 27
Associations Article. 28
(f) “Commercial bank” means an institution that is incorporated under the laws 29
of this State as a State bank or trust company. 30
SENATE BILL 929 3
(g) “Commissioner” means the Commissioner of Financial Regulation in the 1
Maryland Department of Labor. 2
(h) “County” means a county of this State and, unless otherwise indicated, 3
Baltimore City. 4
(i) “Credit union” means a credit union that is incorporated under the laws of this 5
State as a credit union. 6
(j) “Financial institution” means any financial institution of the type supervised 7
under this article, whether or not State–chartered. 8
(k) (1) “Foreign bank” means any financial institution or other institution that 9
engages in banking activities that are usual in connection with the business of banking in 10
the nations in which the institution is organized or operates. 11
(2) “Foreign bank” does not include a bank organized under the laws of any 12
state or a national banking association that has its headquarters in any state. 13
(l) “Includes” or “including” means includes or including by way of illustration 14
and not by way of limitation. 15
(m) “Mail” means to deposit in the United States mail, postage prepaid. 16
(n) “Mortgage” includes a deed of trust that secures a debt or the performance of 17
an obligation. 18
(o) “Municipal area” means a municipal corporation or an unincorporated city, 19
town, or village. 20
(p) “National banking association” means an institution that is incorporated 21
under federal law as a bank. 22
(q) “Nationwide Mortgage Licensing System and Registry” or “NMLS” means a 23
multistate uniform licensing system developed and maintained by the Conference of State 24
Bank Supervisors, or by a subsidiary or an affiliate of the Conference of State Bank 25
Supervisors, that may be used for the licensing and registration of persons required to be 26
licensed or registered under this article or the Commercial Law Article. 27
(r) “Other–state bank” means a bank chartered and primarily regulated by 28
another state. 29
(s) “Other–state credit union” means a credit union chartered and primarily 30
regulated by another state. 31
(t) “Person” means an individual, receiver, trustee, guardian, personal 32
representative, fiduciary, or representative of any kind and any partnership, firm, 33 4 SENATE BILL 929
association, corporation, or other entity. 1
(u) “Political subdivision” means: 2
(1) A county or municipal corporation of this State; and 3
(2) Unless the context requires otherwise, a special taxing district of this 4
State. 5
(v) “Real property” includes any interest in real property. 6
2–101. 7
(A) There is a Commissioner of Financial Regulation in the Maryland Department 8
of Labor. 9
(B) THERE IS AN OFFICE OF FINANCIAL REGULATION UNDER THE 10
COMMISSIONER IN THE MARYLAND DEPARTMENT OF LABOR. 11
(C) THE COMMISSIONER IS THE H EAD OF THE OFFICE OF FINANCIAL 12
REGULATION. 13
2–103. 14
(a) With the approval of the Secretary of Labor, the Commissioner shall appoint 15
[a]: 16
(1) A Deputy Commissioner FOR DEPOSITORY ACTIVITIES; AND 17
(2) A DEPUTY COMMISSIONER FOR NON–DEPOSITORY ACTIVITIES. 18
(b) The Deputy [Commissioner serves] COMMISSIONERS APPOINT ED UNDER 19
SUBSECTION (A) OF THIS SECTION SERVE at the pleasure of the Commissioner and [is 20
an employee] ARE EMPLOYEES of the Commissioner’s office. 21
(c) [The Deputy Commissioner shall have at least 5 years of experience in:] 22
(1) [State or national banking regulation or management; or] THE 23
DEPUTY COMMISSIONER FOR DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 24
YEARS OF EXPERIENCE IN THE REGULATION OR MANAGEMENT OF FINANC IAL 25
INSTITUTIONS. 26
(2) [The regulation or management of the business of making loans by 27
persons of the type regulated by this article] THE DEPUTY COMMISSIONER FOR 28
NON–DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN 29 SENATE BILL 929 5
THE REGULATION OR MA NAGEMENT OF PERSONS REQUIRED TO BE LICENSED OR 1
REGISTERED UNDER THI S ARTICLE OR THE COMMERCIAL LAW ARTICLE. 2
(d) The Deputy [Commissioner is] COMMISSIONERS APPOINT ED UNDER 3
SUBSECTION (A) OF THIS SECTION ARE entitled to the salary provided in the State 4
budget. 5
(e) In addition to any other powers and duties set forth in this article[, the]: 6
(1) THE Deputy Commissioner FOR DEPOSITORY ACTIVITIES has the 7
powers and duties of the Commissioner: 8
[(1)] (I) To the extent delegated by the Commissioner; 9
[(2)] (II) If the office of the Commissioner is vacant; and 10
[(3)] (III) If for any reason the Commissioner is unable to perform the 11
duties of the office; AND 12
(2) THE DEPUTY COMMISSIONER FOR NON–DEPOSITORY 13
ACTIVITIES HAS THE PO WERS AND DUTIES OF T HE COMMISSIONER TO THE E XTENT 14
DELEGATED BY THE COMMISSIONER . 15
2–110. 16
(a) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 17
APPOINTED UNDER § 2–103 OF THIS SUBTITLE shall devote full time to their duties. 18
(b) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 19
APPOINTED UNDER § 2–103 OF THIS SUBTITLE may not: 20
(1) Be an officer or director of any State banking institution or national 21
banking association, or in any entity engaged in the business of making loans; or 22
(2) Engage in any other business relating to banks and financial 23
institutions or lending. 24
2–113. 25
(c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include 26
in the annual budget bill an appropriation to the [Division] OFFICE of Financial 27
Regulation funding the positions necessary to implement the investigative and enforcement 28
powers authorized under this subtitle. 29
2–119. 30 6 SENATE BILL 929
For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the 1
annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 2
the purpose of regulating banking institutions and credit unions. 3
11–611. 4
For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the 5
annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 6
the purpose of creating necessary positions to [implement the provisions of] CARRY OUT 7
this subtitle. 8
12–105.1. 9
(a) A person may provide check cashing services without obtaining a license 10
under this subtitle by registering each year with the Commissioner under this section if 11
the person: 12
(5) Has conspicuously posted a notice with the following information, in 48 13
point type or larger, at each business location at which the person provides check cashing 14
services: 15
(i) The fees charged for check cashing services; and 16
(ii) How to contact the Office of [the Commissioner of] Financial 17
Regulation with comments or complaints; and 18
Article – Real Property 19
7–105.14. 20
(i) (1) There is a Foreclosed Property Registry Fund in the Office of [the 21
Commissioner of] Financial Regulation. 22
Article – State Government 23
8–403. 24
This subtitle applies only to the following governmental activities and units: 25
(22) Financial Regulation, Office of [the Commissioner of] (§ 2–101 of the 26
Financial Institutions Article); 27
SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 28
Assembly that any changes under Section 1 of this Act to § 2–101 of the Financial 29
Institutions Article or other statutory provisions referencing the name of the office 30 SENATE BILL 929 7
established under the Commissioner of Financial Regulation in the Maryland Department 1
of Labor shall be construed as a nonsubstantive revision that does not affect the powers 2
and duties of the Commissioner or the office. 3
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
1, 2023. 5