MD
Maryland Senate Bill SB929

Maryland 2023 Regular Session

Maryland Senate Bill SB929 Compare Versions

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1- WES MOORE, Governor Ch. 29
21
3-– 1 –
4-Chapter 29
5-(Senate Bill 929)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ *sb0929*
89
9-Commissioner of Financial Regulation – Name and Organization of Office
10+SENATE BILL 929
11+I1 3lr2920
12+ CF HB 379
13+By: Senator Griffith
14+Introduced and read first time: February 16, 2023
15+Assigned to: Rules
16+Re–referred to: Finance, March 3, 2023
17+Committee Report: Favorable
18+Senate action: Adopted
19+Read second time: March 9, 2023
1020
11-FOR the purpose of establishing the name of a certain office under the Commissioner of
12-Financial Regulation in the Maryland Department of Labor as the Office of Financial
13-Regulation; designating a certain appointee of the Commissioner of Financial
14-Regulation as the Deputy Commissioner for Depository Activities; requiring the
15-Commissioner of Financial Regulation to appoint a Deputy Commissioner for
16-Non–Depository Activities; and generally relating to the name and organization of
17-the office under the Commissioner of Financial Regulation in the Maryland
18-Department of Labor.
21+CHAPTER ______
1922
20-BY repealing and reenacting, with amendments,
21- Article – Business Regulation
22-Section 7–201
23- Annotated Code of Maryland
24- (2015 Replacement Volume and 2022 Supplement)
23+AN ACT concerning 1
2524
26-BY repealing and reenacting, without amendments,
27- Article – Financial Institutions
28-Section 1–101
29- Annotated Code of Maryland
30- (2020 Replacement Volume and 2022 Supplement)
25+Commissioner of Financial Regulation – Name and Organization of Office 2
3126
32-BY repealing and reenacting, with amendments,
33- Article – Financial Institutions
34-Section 2–101, 2–103, 2–110, 2–113(c), 2–119, 11–611, and 12–105.1(a)(5)
35- Annotated Code of Maryland
36- (2020 Replacement Volume and 2022 Supplement)
27+FOR the purpose of establishing the name of a certain office under the Commissioner of 3
28+Financial Regulation in the Maryland Department of Labor as the Office of Financial 4
29+Regulation; designating a certain appointee of the Commissioner of Financial 5
30+Regulation as the Deputy Commissioner for Depository Activities; requiring the 6
31+Commissioner of Financial Regulation to appoint a Deputy Commissioner for 7
32+Non–Depository Activities; and generally relating to the name and organization of 8
33+the office under the Commissioner of Financial Regulation in the Maryland 9
34+Department of Labor. 10
3735
38-BY repealing and reenacting, with amendments,
39- Article – Real Property
40-Section 7–105.14(i)(1)
41- Annotated Code of Maryland
42- (2015 Replacement Volume and 2022 Supplement)
36+BY repealing and reenacting, with amendments, 11
37+ Article – Business Regulation 12
38+Section 7–201 13
39+ Annotated Code of Maryland 14
40+ (2015 Replacement Volume and 2022 Supplement) 15
4341
44-BY repealing and reenacting, with amendments,
45- Article – State Government
46-Section 8–403(22)
47- Annotated Code of Maryland
48- (2021 Replacement Volume and 2022 Supplement)
49- Ch. 29 2023 LAWS OF MARYLAND
42+BY repealing and reenacting, without amendments, 16
43+ Article – Financial Institutions 17
44+Section 1–101 18
45+ Annotated Code of Maryland 19
46+ (2020 Replacement Volume and 2022 Supplement) 20
5047
51-– 2 –
52- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
53-That the Laws of Maryland read as follows:
48+BY repealing and reenacting, with amendments, 21 2 SENATE BILL 929
5449
55-Article – Business Regulation
5650
57-7–201.
51+ Article – Financial Institutions 1
52+Section 2–101, 2–103, 2–110, 2–113(c), 2–119, 11–611, and 12–105.1(a)(5) 2
53+ Annotated Code of Maryland 3
54+ (2020 Replacement Volume and 2022 Supplement) 4
5855
59- There is a State Collection Agency Licensing Board in the Office of [the
60-Commissioner of] Financial Regulation in the Department.
56+BY repealing and reenacting, with amendments, 5
57+ Article – Real Property 6
58+Section 7–105.14(i)(1) 7
59+ Annotated Code of Maryland 8
60+ (2015 Replacement Volume and 2022 Supplement) 9
6161
62-Article – Financial Institutions
62+BY repealing and reenacting, with amendments, 10
63+ Article – State Government 11
64+Section 8–403(22) 12
65+ Annotated Code of Maryland 13
66+ (2021 Replacement Volume and 2022 Supplement) 14
6367
64-1–101.
68+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMB LY OF MARYLAND, 15
69+That the Laws of Maryland read as follows: 16
6570
66- (a) In this article, unless the context clearly requires otherwise, the following
67-words have the meanings indicated.
71+Article – Business Regulation 17
6872
69- (b) “Address” means post office address, including, if applicable, street and
70-number, municipal area or county, state, and, if outside of the United States, country.
73+7–201. 18
7174
72- (c) “Any state” means:
75+ There is a State Collection Agency Licensing Board in the Office of [the 19
76+Commissioner of] Financial Regulation in the Department. 20
7377
74- (1) Any state, possession, or territory of the United States;
78+Article – Financial Institutions 21
7579
76- (2) The District of Columbia; or
80+1–101. 22
7781
78- (3) The Commonwealth of Puerto Rico.
82+ (a) In this article, unless the context clearly requires otherwise, the following 23
83+words have the meanings indicated. 24
7984
80- (d) “Banking institution” means an institution that is incorporated under the
81-laws of this State as a State bank, trust company, or savings bank.
85+ (b) “Address” means post office address, including, if applicable, street and 25
86+number, municipal area or county, state, and, if outside of the United States, country. 26
8287
83- (e) “Charter” has the meaning stated in § 1–101 of the Corporations and
84-Associations Article.
88+ (c) “Any state” means: 27
8589
86- (f) “Commercial bank” means an institution that is incorporated under the laws
87-of this State as a State bank or trust company.
90+ (1) Any state, possession, or territory of the United States; 28
8891
89- (g) “Commissioner” means the Commissioner of Financial Regulation in the
90-Maryland Department of Labor.
92+ (2) The District of Columbia; or 29
9193
92- (h) “County” means a county of this State and, unless otherwise indicated,
93-Baltimore City.
94+ (3) The Commonwealth of Puerto Rico. 30
9495
95- (i) “Credit union” means a credit union that is incorporated under the laws of this
96-State as a credit union.
97- WES MOORE, Governor Ch. 29
96+ (d) “Banking institution” means an institution that is incorporated under the 31
97+laws of this State as a State bank, trust company, or savings bank. 32 SENATE BILL 929 3
9898
99-– 3 –
100- (j) “Financial institution” means any financial institution of the type supervised
101-under this article, whether or not State–chartered.
10299
103- (k) (1) “Foreign bank” means any financial institution or other institution that
104-engages in banking activities that are usual in connection with the business of banking in
105-the nations in which the institution is organized or operates.
106100
107- (2) “Foreign bank” does not include a bank organized under the laws of any
108-state or a national banking association that has its headquarters in any state.
101+ (e) “Charter” has the meaning stated in § 1–101 of the Corporations and 1
102+Associations Article. 2
109103
110- (l) “Includes” or “including” means includes or including by way of illustration
111-and not by way of limitation.
104+ (f) “Commercial bank” means an institution that is incorporated under the laws 3
105+of this State as a State bank or trust company. 4
112106
113- (m) “Mail” means to deposit in the United States mail, postage prepaid.
107+ (g) “Commissioner” means the Commissioner of Financial Regulation in the 5
108+Maryland Department of Labor. 6
114109
115- (n) “Mortgage” includes a deed of trust that secures a debt or the performance of
116-an obligation.
110+ (h) “County” means a county of this State and, unless otherwise indicated, 7
111+Baltimore City. 8
117112
118- (o) “Municipal area” means a municipal corporation or an unincorporated city,
119-town, or village.
113+ (i) “Credit union” means a credit union that is incorporated under the laws of this 9
114+State as a credit union. 10
120115
121- (p) “National banking association” means an institution that is incorporated
122-under federal law as a bank.
116+ (j) “Financial institution” means any financial institution of the type supervised 11
117+under this article, whether or not State–chartered. 12
123118
124- (q) “Nationwide Mortgage Licensing System and Registry” or “NMLS” means a
125-multistate uniform licensing system developed and maintained by the Conference of State
126-Bank Supervisors, or by a subsidiary or an affiliate of the Conference of State Bank
127-Supervisors, that may be used for the licensing and registration of persons required to be
128-licensed or registered under this article or the Commercial Law Article.
119+ (k) (1) “Foreign bank” means any financial institution or other institution that 13
120+engages in banking activities that are usual in connection with the business of banking in 14
121+the nations in which the institution is organized or operates. 15
129122
130- (r) “Other–state bank” means a bank chartered and primarily regulated by
131-another state.
123+ (2) “Foreign bank” does not include a bank organized under the laws of any 16
124+state or a national banking association that has its headquarters in any state. 17
132125
133- (s) “Other–state credit union” means a credit union chartered and primarily
134-regulated by another state.
126+ (l) “Includes” or “including” means includes or including by way of illustration 18
127+and not by way of limitation. 19
135128
136- (t) “Person” means an individual, receiver, trustee, guardian, personal
137-representative, fiduciary, or representative of any kind and any partnership, firm,
138-association, corporation, or other entity.
129+ (m) “Mail” means to deposit in the United States mail, postage prepaid. 20
139130
140- (u) “Political subdivision” means:
131+ (n) “Mortgage” includes a deed of trust that secures a debt or the performance of 21
132+an obligation. 22
141133
142- (1) A county or municipal corporation of this State; and
134+ (o) “Municipal area” means a municipal corporation or an unincorporated city, 23
135+town, or village. 24
143136
144- (2) Unless the context requires otherwise, a special taxing district of this
145-State. Ch. 29 2023 LAWS OF MARYLAND
137+ (p) “National banking association” means an institution that is incorporated 25
138+under federal law as a bank. 26
146139
147-– 4 –
140+ (q) “Nationwide Mortgage Licensing System and Registry” or “NMLS” means a 27
141+multistate uniform licensing system developed and maintained by the Conference of State 28
142+Bank Supervisors, or by a subsidiary or an affiliate of the Conference of State Bank 29
143+Supervisors, that may be used for the licensing and registration of persons required to be 30
144+licensed or registered under this article or the Commercial Law Article. 31
148145
149- (v) “Real property” includes any interest in real property.
146+ (r) “Other–state bank” means a bank chartered and primarily regulated by 32 4 SENATE BILL 929
150147
151-2–101.
152148
153- (A) There is a Commissioner of Financial Regulation in the Maryland Department
154-of Labor.
149+another state. 1
155150
156- (B) THERE IS AN OFFICE OF FINANCIAL REGULATION UNDER THE
157-COMMISSIONER IN THE MARYLAND DEPARTMENT OF LABOR.
151+ (s) “Other–state credit union” means a credit union chartered and primarily 2
152+regulated by another state. 3
158153
159- (C) THE COMMISSIONER IS THE H EAD OF THE OFFICE OF FINANCIAL
160-REGULATION.
154+ (t) “Person” means an individual, receiver, trustee, guardian, personal 4
155+representative, fiduciary, or representative of any kind and any partnership, firm, 5
156+association, corporation, or other entity. 6
161157
162-2–103.
158+ (u) “Political subdivision” means: 7
163159
164- (a) With the approval of the Secretary of Labor, the Commissioner shall appoint
165-[a]:
160+ (1) A county or municipal corporation of this State; and 8
166161
167- (1) A Deputy Commissioner FOR DEPOSITORY ACTIVITIES; AND
162+ (2) Unless the context requires otherwise, a special taxing district of this 9
163+State. 10
168164
169- (2) A DEPUTY COMMISSIONER FOR NON–DEPOSITORY ACTIVITIES.
165+ (v) “Real property” includes any interest in real property. 11
170166
171- (b) The Deputy [Commissioner serves] COMMISSIONERS AP POINTED UNDER
172-SUBSECTION (A) OF THIS SECTION SERVE at the pleasure of the Commissioner and [is
173-an employee] ARE EMPLOYEES of the Commissioner’s office.
167+2–101. 12
174168
175- (c) [The Deputy Commissioner shall have at least 5 years of experience in:]
169+ (A) There is a Commissioner of Financial Regulation in the Maryland Department 13
170+of Labor. 14
176171
177- (1) [State or national banking regulation or management; or] THE
178-DEPUTY COMMISSIONER FOR DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5
179-YEARS OF EXPERIENCE IN THE REGULATION OR MANAGEMENT OF FINANC IAL
180-INSTITUTIONS.
172+ (B) THERE IS AN OFFICE OF FINANCIAL REGULATION UNDER THE 15
173+COMMISSIONER IN THE MARYLAND DEPARTMENT OF LABOR. 16
181174
182- (2) [The regulation or management of the business of making loans by
183-persons of the type regulated by this article] THE DEPUTY COMMISSIONER FOR
184-NON–DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN
185-THE REGULATION OR MA NAGEMENT OF PERSONS REQUIRED TO BE LICEN SED OR
186-REGISTERED UNDER THI S ARTICLE OR THE COMMERCIAL LAW ARTICLE.
175+ (C) THE COMMISSIONER IS THE H EAD OF THE OFFICE OF FINANCIAL 17
176+REGULATION. 18
187177
188- (d) The Deputy [Commissioner is] COMMISSIONERS APPOINT ED UNDER
189-SUBSECTION (A) OF THIS SECTION ARE entitled to the salary provided in the State
190-budget.
191- WES MOORE, Governor Ch. 29
178+2–103. 19
192179
193-– 5 –
194- (e) In addition to any other powers and duties set forth in this article[, the]:
180+ (a) With the approval of the Secretary of Labor, the Commissioner shall appoint 20
181+[a]: 21
195182
196- (1) THE Deputy Commissioner FOR DEPOSITORY ACTIVITIES has the
197-powers and duties of the Commissioner:
183+ (1) A Deputy Commissioner FOR DEPOSITORY ACTIVITIES; AND 22
198184
199- [(1)] (I) To the extent delegated by the Commissioner;
185+ (2) A DEPUTY COMMISSIONER FOR NON–DEPOSITORY ACTIVITIES. 23
200186
201- [(2)] (II) If the office of the Commissioner is vacant; and
187+ (b) The Deputy [Commissioner serves] COMMISSIONERS APPOINT ED UNDER 24
188+SUBSECTION (A) OF THIS SECTION SERVE at the pleasure of the Commissioner and [is 25
189+an employee] ARE EMPLOYEES of the Commissioner’s office. 26
202190
203- [(3)] (III) If for any reason the Commissioner is unable to perform the
204-duties of the office; AND
191+ (c) [The Deputy Commissioner shall have at least 5 years of experience in:] 27
205192
206- (2) THE DEPUTY COMMISSIONER FOR NON–DEPOSITORY
207-ACTIVITIES HAS THE PO WERS AND DUTIES OF T HE COMMISSIONER TO THE E XTENT
208-DELEGATED BY THE COMMISSIONER .
193+ (1) [State or national banking regulation or management; or] THE 28
194+DEPUTY COMMISSIONER FOR DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 29 SENATE BILL 929 5
209195
210-2–110.
211196
212- (a) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS
213-APPOINTED UNDER § 2–103 OF THIS SUBTITLE shall devote full time to their duties.
197+YEARS OF EXPERIENCE IN THE REGULATION OR MANAGEMENT OF FINANC IAL 1
198+INSTITUTIONS. 2
214199
215- (b) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS
216-APPOINTED UNDER § 2–103 OF THIS SUBTITLE may not:
200+ (2) [The regulation or management of the business of making loans by 3
201+persons of the type regulated by this article] THE DEPUTY COMMISSIONER FOR 4
202+NON–DEPOSITORY ACTIVITIES SHALL HAVE AT LEAST 5 YEARS OF EXPERIENCE IN 5
203+THE REGULATION OR MA NAGEMENT OF PERSONS REQUIRED TO BE LICEN SED OR 6
204+REGISTERED UNDER THI S ARTICLE OR THE COMMERCIAL LAW ARTICLE. 7
217205
218- (1) Be an officer or director of any State banking institution or national
219-banking association, or in any entity engaged in the business of making loans; or
206+ (d) The Deputy [Commissioner is] COMMISSIONERS APPOINT ED UNDER 8
207+SUBSECTION (A) OF THIS SECTION ARE entitled to the salary provided in the State 9
208+budget. 10
220209
221- (2) Engage in any other business relating to banks and financial
222-institutions or lending.
210+ (e) In addition to any other powers and duties set forth in this article[, the]: 11
223211
224-2–113.
212+ (1) THE Deputy Commissioner FOR DEPOSITORY ACTIVITIES has the 12
213+powers and duties of the Commissioner: 13
225214
226- (c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include
227-in the annual budget bill an appropriation to the [Division] OFFICE of Financial
228-Regulation funding the positions necessary to implement the investigative and enforcement
229-powers authorized under this subtitle.
215+ [(1)] (I) To the extent delegated by the Commissioner; 14
230216
231-2–119.
217+ [(2)] (II) If the office of the Commissioner is vacant; and 15
232218
233- For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the
234-annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for
235-the purpose of regulating banking institutions and credit unions.
219+ [(3)] (III) If for any reason the Commissioner is unable to perform the 16
220+duties of the office; AND 17
236221
237-11–611.
238- Ch. 29 2023 LAWS OF MARYLAND
222+ (2) THE DEPUTY COMMISSIONER FOR NON–DEPOSITORY 18
223+ACTIVITIES HAS THE PO WERS AND DUTIES OF T HE COMMISSIONER TO THE E XTENT 19
224+DELEGATED BY THE COMMISSIONER . 20
239225
240-– 6 –
241- For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the
242-annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for
243-the purpose of creating necessary positions to [implement the provisions of] CARRY OUT
244-this subtitle.
226+2–110. 21
245227
246-12–105.1.
228+ (a) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 22
229+APPOINTED UNDER § 2–103 OF THIS SUBTITLE shall devote full time to their duties. 23
247230
248- (a) A person may provide check cashing services without obtaining a license
249-under this subtitle by registering each year with the Commissioner under this section if
250-the person:
231+ (b) The Commissioner and THE Deputy [Commissioner] COMMISSIONERS 24
232+APPOINTED UNDER § 2–103 OF THIS SUBTITLE may not: 25
251233
252- (5) Has conspicuously posted a notice with the following information, in 48
253-point type or larger, at each business location at which the person provides check cashing
254-services:
234+ (1) Be an officer or director of any State banking institution or national 26
235+banking association, or in any entity engaged in the business of making loans; or 27
255236
256- (i) The fees charged for check cashing services; and
237+ (2) Engage in any other business relating to banks and financial 28
238+institutions or lending. 29
257239
258- (ii) How to contact the Office of [the Commissioner of] Financial
259-Regulation with comments or complaints; and
240+2–113. 30
241+ 6 SENATE BILL 929
260242
261-Article – Real Property
262243
263-7–105.14.
244+ (c) For fiscal year 2001 and each fiscal year thereafter, the Governor shall include 1
245+in the annual budget bill an appropriation to the [Division] OFFICE of Financial 2
246+Regulation funding the positions necessary to implement the investigative and enforcement 3
247+powers authorized under this subtitle. 4
264248
265- (i) (1) There is a Foreclosed Property Registry Fund in the Office of [the
266-Commissioner of] Financial Regulation.
249+2–119. 5
267250
268-Article – State Government
251+ For fiscal year 2009 and each fiscal year thereafter, the Governor shall include in the 6
252+annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 7
253+the purpose of regulating banking institutions and credit unions. 8
269254
270-8–403.
255+11–611. 9
271256
272- This subtitle applies only to the following governmental activities and units:
257+ For fiscal year 2006 and each fiscal year thereafter, the Governor shall include in the 10
258+annual budget bill an appropriation to the [Division] OFFICE of Financial Regulation for 11
259+the purpose of creating necessary positions to [implement the provisions of] CARRY OUT 12
260+this subtitle. 13
273261
274- (22) Financial Regulation, Office of [the Commissioner of] (§ 2–101 of the
275-Financial Institutions Article);
262+12–105.1. 14
276263
277- SECTION 2. AND BE IT FURTHER ENACTE D, That it is the intent of the General
278-Assembly that any changes under Section 1 of this Act to § 2–101 of the Financial
279-Institutions Article or other statutory provisions referencing the name of the office
280-established under the Commissioner of Financial Regulation in the Maryland Department
281-of Labor shall be construed as a nonsubstantive revision that does not affect the powers
282-and duties of the Commissioner or the office.
264+ (a) A person may provide check cashing services without obtaining a license 15
265+under this subtitle by registering each year with the Commissioner under this section if 16
266+the person: 17
283267
284- SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July
285-1, 2023.
286- WES MOORE, Governor Ch. 29
268+ (5) Has conspicuously posted a notice with the following information, in 48 18
269+point type or larger, at each business location at which the person provides check cashing 19
270+services: 20
287271
288-– 7 –
289-Approved by the Governor, April 11, 2023.
272+ (i) The fees charged for check cashing services; and 21
273+
274+ (ii) How to contact the Office of [the Commissioner of] Financial 22
275+Regulation with comments or complaints; and 23
276+
277+Article – Real Property 24
278+
279+7–105.14. 25
280+
281+ (i) (1) There is a Foreclosed Property Registry Fund in the Office of [the 26
282+Commissioner of] Financial Regulation. 27
283+
284+Article – State Government 28
285+
286+8–403. 29
287+
288+ This subtitle applies only to the following governmental activities and units: 30
289+ SENATE BILL 929 7
290+
291+
292+ (22) Financial Regulation, Office of [the Commissioner of] (§ 2–101 of the 1
293+Financial Institutions Article); 2
294+
295+ SECTION 2. AND BE IT FURTHER ENACTED, That it is the intent of the General 3
296+Assembly that any changes under Section 1 of this Act to § 2–101 of the Financial 4
297+Institutions Article or other statutory provisions referencing the name of the office 5
298+established under the Commissioner of Financial Regulation in the Maryland Department 6
299+of Labor shall be construed as a nonsubstantive revision that does not affect the powers 7
300+and duties of the Commissioner or the office. 8
301+
302+ SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect July 9
303+1, 2023. 10
304+
305+
306+
307+
308+Approved:
309+________________________________________________________________________________
310+ Governor.
311+________________________________________________________________________________
312+ President of the Senate.
313+________________________________________________________________________________
314+ Speaker of the House of Delegates.