EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb0574*
HOUSE BILL 574
I1 4lr2570
CF SB 509
By: Delegate Fraser–Hidalgo
Introduced and read first time: January 24, 2024
Assigned to: Economic Matters
A BILL ENTITLED
AN ACT concerning 1
Commercial Financing – Small Business Truth in Lending Act 2
FOR the purpose of regulating commercial financing transactions, including by 3
establishing requirements related to disclosures, calculations of annual percentage 4
rates, terms of repayments, and other related items, and the extension of specific 5
offers; and generally relating to commercial financing transactions. 6
BY adding to 7
Article – Financial Institutions 8
Section 12–1201 through 12–1214 to be under the new subtitle “Subtitle 12. 9
Commercial Financing” 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2023 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
SUBTITLE 12. COMMERCIAL FINANCING. 16
12–1201. 17
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19
(B) (1) “CLOSED–END FINANCING ” MEANS A CLOSED –END EXTENSION OF 20
CREDIT, SECURED OR UNSECURED , INCLUDING EQUIPMENT FINANCING, THAT: 21
2 HOUSE BILL 574
(I) DOES NOT MEET THE DEF INITION OF A LEASE U NDER 1
ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE; AND 2
(II) THE PROCEEDS OF WHICH A RECIPIENT DOES NOT INTEND 3
TO USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSE S. 4
(2) “CLOSED–END FINANCING ” INCLUDES FINANCING THAT H AS AN 5
ESTABLISHED PRINCIPA L AMOUNT AND DURATIO N. 6
(C) “COMMERCIAL FINANCING ” MEANS OPEN –END FINANCING , 7
CLOSED–END FINANCING , SALES–BASED FINANCING , A FACTORING TRANSACT ION, 8
OR ANOTHER FORM OF F INANCING, THE PROCEEDS OF WHIC H THE RECIPIENT DOES 9
NOT INTEND TO USE PR IMARILY FOR PERSONAL , FAMILY, OR HOUSEHOLD 10
PURPOSES. 11
(D) “FACTORING TRANSACTION ” MEANS AN ACCOUNTS RE CEIVABLE 12
PURCHASE TRANSACTION : 13
(1) THAT INCLUDES AN AGRE EMENT TO PURCHASE , TRANSFER, OR 14
SELL A LEGALLY ENFOR CEABLE CLAIM FOR PAYMENT HE LD BY A RECIPIENT FO R 15
GOODS THE RECIPIENT HAS SUPPLIED OR SERV ICES THE RECIPIENT H AS RENDERED 16
THAT HAVE BEEN ORDER ED BUT FOR WHICH PAY MENT HAS NOT BEEN MA DE; AND 17
(2) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT INTEND TO 18
USE PRIMARIL Y FOR PERSONAL , FAMILY, OR HOUSEHOLD PURPOSE S. 19
(E) (1) “FINANCE CHARGE ” MEANS THE COST OF CO MMERCIAL 20
FINANCING REPRESENTE D AS A DOLLAR AMOUNT . 21
(2) “FINANCE CHARGE ” INCLUDES: 22
(I) A CHARGE PAYABLE DIREC TLY OR INDIRECTLY BY A 23
RECIPIENT AND IMPOSE D DIRECTLY OR INDIRECTLY BY A PROVIDER AS AN 24
INCIDENT TO OR A CON DITION OF THE EXTENS ION OF COMMERCIAL FI NANCING; 25
(II) A CHARGE THAT WOULD BE INCLUDED UNDER 12 C.F.R. § 26
1026.4 IF A TRANSACTION WER E SUBJECT TO 12 C.F.R. § 1026.4; AND 27
(III) ANY ADDITIONA L CHARGES DETERMINED BY THE 28
COMMISSIONER . 29
(F) (1) “OPEN–END FINANCING ” MEANS AN AGREEMENT F OR ONE OR 30
MORE EXTENSIONS OF S ECURED OR UNSECURED OPEN–END CREDIT , THE 31 HOUSE BILL 574 3
PROCEEDS OF WHICH A RECIPIENT DOES NOT I NTEND TO USE PRIMARI LY FOR 1
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES . 2
(2) “OPEN–END FINANCING ” INCLUDES CREDIT EXTE NDED BY A 3
PROVIDER UNDER A PLA N IN WHICH: 4
(I) THE PROVIDER REASONAB LY CONTEMPLATES REPE ATED 5
TRANSACTIONS ; 6
(II) THE PROVIDER MAY IMPO SE A FINANCE CHARGE ON AN 7
OUTSTANDING UNPAID BALANCE; AND 8
(III) THE AMOUNT OF CREDIT THAT MAY BE EXTENDED TO A 9
RECIPIENT DURING THE TERM OF THE PLAN , UP TO A LIMIT THAT T HE PROVIDER 10
SETS, IS GENERALLY MADE AV AILABLE TO THE EXTEN T THAT ANY OUTSTANDI NG 11
BALANCE IS REPAID . 12
(G) (1) “PROVIDER” MEANS A PERSON THAT EXTEND S A SPECIFIC OFFER 13
OF COMMERCIAL FINANC ING TO A RECIPIENT . 14
(2) “PROVIDER” INCLUDES A PERSON TH AT SOLICITS AND PRES ENTS 15
A SPECIFIC OFFER OF COMMERCIAL FINANCING ON BEHALF OF A THIRD PARTY. 16
(H) (1) “RECIPIENT” MEANS A PERSON , OR THE PERSON’S AUTHORIZED 17
REPRESENTATIVE , THAT APPLIES FOR COM MERCIAL FINANCING AN D IS MADE A 18
SPECIFIC OFFER OF CO MMERCIAL FINANCING B Y A PROVIDER. 19
(2) “RECIPIENT” DOES NOT INCLUDE A P ERSON ACTING AS A 20
BROKER. 21
(I) (1) “SALES–BASED FINANCING ” MEANS A TRANSAC TION: 22
(I) THAT IS REPAID BY A RECIPIENT TO A PROVID ER OVER TIME 23
AS A PERCENTAGE OF S ALES OR REVENUE , IN WHICH THE PAYMENT AMOUNT MAY 24
INCREASE OR DECREASE ACCORDING TO THE VOL UME OF SALES MADE OR REVENUE 25
RECEIVED BY THE RECI PIENT; AND 26
(II) THE PROCE EDS OF WHICH THE REC IPIENT DOES NOT 27
INTEND TO USE PRIMAR ILY FOR PERSONAL , FAMILY, OR HOUSEHOLD PURPOSE S. 28
(2) “SALES–BASED FINANCING ” INCLUDES A TRANSACTI ON 29
CONTAINING A TRUE –UP MECHANISM UNDER W HICH THE FINANCING I S REPAID AS 30
A FIXED PAYMENT BUT PROVIDES FOR A RECONCILIATI ON PROCESS THAT ADJU STS 31
THE PAYMENT TO AN AM OUNT THAT IS A PERCE NTAGE OF SALES OR RE VENUE. 32 4 HOUSE BILL 574
(J) “SPECIFIC OFFER ” MEANS THE TERMS OF C OMMERCIAL FINANCING 1
THAT ARE QUOTED TO A RECIPIENT, BASED ON INFORMATION OBTAINED FROM OR 2
ABOUT THE RE CIPIENT, WHICH IF ACCEPTED BY THE RECIPIENT ARE BI NDING ON A 3
PROVIDER, AS APPLICABLE, SUBJECT TO REQUIREME NTS STATED IN THE TE RMS OF 4
THE COMMERCIAL FINAN CING. 5
12–1202. 6
THIS SUBTITLE DOES NO T APPLY TO: 7
(1) (I) A FEDERAL OR STATE BANK, CREDIT UNION , OR SAVINGS 8
ASSOCIATION; OR 9
(II) A SUBSIDIARY OR AFFILI ATE OF AN ORGANIZATI ON LISTED 10
IN ITEM (I) OF THIS ITEM; 11
(2) A PERSON ACTING AS A T ECHNOLOGY SERVICES P ROVIDER TO AN 12
ENTITY EXEMPT UNDER THIS SECTION FOR USE AS PART OF THE ENTIT Y’S 13
COMMERCIAL FINANCING PROGRAM IF THE PERSON DOES NOT HAVE AN INTEREST , 14
ARRANGEMENT , OR AGREEMENT TO PURC HASE ANY INTEREST IN THE COMMERCIAL 15
FINANCING EXTENDED B Y THE ENTITY IN CONN ECTION WITH THE COMM ERCIAL 16
FINANCING PROGRAM ; 17
(3) A LENDER REGULATED UND ER THE FEDERAL FARM CREDIT ACT; 18
(4) A COMMERCIAL FINANCING TRANSACTION SECURED BY REAL 19
PROPERTY; 20
(5) A LEASE AS DEFINED IN ARTICLE 2A OF THE UNIFORM 21
COMMERCIAL CODE; 22
(6) A PROVIDER OR OTHER PE RSON WHO MAKES NOT M ORE THAN 23
FIVE COMMERCIAL FINA NCING TRANSAC TIONS IN THE STATE IN A 12–MONTH 24
PERIOD; 25
(7) A COMMERCIAL FINANCING TRANSACTION MORE THA N 26
$2,500,000; 27
(8) A COMMERCIAL FINANCING TRANSACTION : 28
(I) IN WHICH THE RECIPIEN T IS: 29
HOUSE BILL 574 5
1. A DEALER, OR AN AFFILIATE OF A DEALER, AS 1
DEFINED IN § 11–111 OF THE TRANSPORTATION ARTICLE; OR 2
2. A RENTAL VEHICLE COMPA NY, OR AN AFFILIATE OF A 3
RENTAL VEHICLE COMPA NY, AS DEFINED IN § 18–108 OF THE TRANSPORTATION 4
ARTICLE; AND 5
(II) MADE UNDER A COMMERCI AL FINANCING AGREEME NT OR 6
COMMERCIAL OPEN –END CREDIT PLAN OF AT LEAST $50,000, INCLUDING A 7
COMMERCIAL LOAN MADE IN ACCORDANCE WITH T HE COMMERCIAL FINANC ING 8
TRANSACTION ; OR 9
(9) A COMMERCIAL FINANCING TRANSACTION THAT IS A FACTORING 10
TRANSACTION , AN ADVANCE , OR A SIMILAR TRANSAC TION OF ACCOUNTS 11
RECEIVABLE OWED T O A HEALTH CARE PROV IDER BECAUSE OF A PA TIENT’S 12
PERSONAL INJURY TREA TED BY THE HEALTH CA RE PROVIDER. 13
12–1203. 14
(A) EXCEPT AS PROVIDED IN § 12–1207 OF THIS SUBTITLE , FOR PURPOSES 15
OF THIS SUBTITLE, AN ANNUAL PERCENTAGE RATE SHALL BE: 16
(1) EXPRESSED AS A YEARLY RATE , INCLUDING ALL FEES A ND 17
FINANCE CHARGES ; AND 18
(2) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH IN 19
LENDING ACT. 20
(B) IN ADDITION TO THE RE QUIREMENTS OF SUBSEC TION (A)(2) OF THIS 21
SECTION, AN ANNUAL PERCENTAGE RATE SHALL BE CALCUL ATED BASED ON THE 22
ESTIMATED TERM OF RE PAYMENT AND THE PROJ ECTED PERIODIC PAYME NT 23
AMOUNTS OF A COMMERC IAL FINANCING TRANSA CTION, REGARDLESS OF WHETHE R 24
FEDERAL LAW OR REGUL ATION WOULD REQUIRE AN ANNUAL PERCENTAGE RATE TO 25
BE CALCULATED FOR A CERTAIN TRANSACTION . 26
(C) THIS SECTION MAY NOT BE CONSTRUED TO IMPO SE ANY LIABILITY ON A 27
PROVIDER THAT CHARGE S AN ANNUAL PERCENTA GE RATE THAT DIFFERS FROM THE 28
ESTIMATED ANNUAL PER CENTAGE RATE DISCLOS ED BY THE PROVIDER I N 29
ACCORDANCE WITH THIS SUBTITLE OR ANY REGU LATION ADOPTED UNDER THIS 30
SUBTITLE. 31
12–1204. 32
6 HOUSE BILL 574
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 1
INDICATED. 2
(2) “ESTIMATED TERM OF REP AYMENT” MEANS THE AMOUNT OF 3
TIME REQUIRED FOR TH E PERIODIC PAYMENTS MADE BY A RECIPIENT IN A 4
SALES–BASED FINANCING TRAN SACTION TO EQUAL THE TOTAL AMOUNT REQUIRED 5
TO BE REPAID. 6
(3) “TOTAL REPAYMENT AMOUN T” MEANS THE DISBURSEME NT 7
AMOUNT OF A SALES –BASED FINANCING TRAN SACTION PLUS THE FIN ANCE CHARGE . 8
(B) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 9
A RECIPIENT WH EN EXTENDING A SPECI FIC OFFER OF SALES –BASED FINANCING : 10
(I) THE TOTAL AMOUNT OF T HE SALES–BASED FINANCING AND 11
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 12
MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 13
(II) THE FINANCE CHA RGE; 14
(III) THE ESTIMATED ANNUAL PERCENTAGE RATE OF T HE 15
SALES–BASED FINANCING , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 16
ABBREVIATION “APR”; 17
(IV) THE TOTAL REPAYMENT A MOUNT; 18
(V) THE ESTIMATED TERM OF REPAYMENT ; 19
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 20
PROJECTED PERIODIC P AYMENT AMOUNTS ; 21
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 22
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 23
PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 24
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 25
REQUIREMENTS OR SECU RITY INTERESTS. 26
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 27
SHALL DISCLOSE : 28
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 29
HOUSE BILL 574 7
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 1
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 2
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 3
SHALL DISCLOSE : 4
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 5
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 6
2. THE AMOUNT OF THE AVE RAGE PROJECTED 7
PAYMENTS PER MONTH . 8
(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE SALES–BASED 9
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 10
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 11
PAY: 12
(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 13
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 14
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 15
CHARGE. 16
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 17
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SIN CE THE RECIPIENT ’S 18
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 19
PORTION OF THE FINAN CE CHARGE AND THE MA XIMUM DOLLAR AMOUNT THE 20
RECIPIENT COULD BE R EQUIRED TO PAY . 21
12–1205. 22
(A) (1) A PROVIDER SHALL USE T HE PROJECTED SALES V OLUME OF A 23
RECIPIENT TO CALCULA TE THE FOLLOWING INF ORMATION RELATED TO A 24
SALES–BASED FINANCING TRAN SACTION: 25
(I) THE ESTIMATED TERM OF REPAYMENT AND THE 26
PROJECTED PAYMENT AM OUNTS OF A SALES–BASED FINANCING TRAN SACTION; AND 27
(II) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A 28
SALES–BASED FINANCING TRAN SACTION. 29
(2) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A SALES–BASED 30
FINANCING TRANSACTIO N SHALL BE CALCULATE D: 31
8 HOUSE BILL 574
(I) IN ACCORDANCE WITH TH E FEDERAL TRUTH IN LENDING 1
ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 2
(II) BASED ON THE ESTIMATE D TERM OF REPAYMENT AND 3
PROJECTED SALES VOLU ME OF A RECIPIENT . 4
(B) (1) A PROVIDER MAY CALCULA TE THE PROJECTED SAL ES VOLUME OF 5
A RECIPIENT USING EI THER THE HISTORICAL METHOD OR THE OPT –IN METHOD. 6
(2) (I) A PROVIDER THAT USES T HE HISTORICAL METHOD TO 7
CALCULATE THE PROJEC TED SALES VOLUME OF A RECIPIENT SHALL US E AN 8
AVERAGE HISTORICAL V OLUME OF SALES OR RE VENUE. 9
(II) A PROVIDER SHALL FIX T HE HISTORICAL TIME P ERIOD 10
USED TO CALCULATE THE AVE RAGE HISTORICAL VOLU ME AND USE THE SAME TIME 11
PERIOD FOR ALL DISCL OSURE PURPOSES FOR A NY SALES–BASED FINANCING 12
TRANSACTION PRODUCTS OFFERED. 13
(III) EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) OF THIS 14
PARAGRAPH , THE FIXED HISTORICAL TIME PERIOD: 15
1. MAY NOT BE LESS THAN 1 MONTH AND MAY NOT 16
EXCEED 12 MONTHS; AND 17
2. SHALL BE THE TIME PER IOD DIRECTLY BEFORE THE 18
SPECIFIC OFFER WAS M ADE. 19
(IV) A PROVIDER MAY CHOOSE TO USE THE AVERAGE S ALES FOR 20
THE SAME NUMBER OF M ONTHS AS THE PROVID ER WOULD HAVE USED U NDER 21
SUBPARAGRAPH (III) OF THIS PARAGRAPH WI TH THE HIGHEST SALES VOLUME 22
WITHIN THE PAST 12 MONTHS. 23
(3) A PROVIDER MAY USE THE OPT–IN METHOD TO DETERMI NE THE 24
INFORMATION LISTED U NDER SUBSECTION (A)(1) OF THIS SECTION BY U SING A 25
PROJECTED SALES VOLU ME THAT THE PROVIDER CHOOSES FOR EACH DIS CLOSURE 26
IF THE RECIPIENT PAR TICIPATES IN A REVIE W PROCESS ESTABLISHE D BY THE 27
COMMISSIONER . 28
(C) A PROVIDER SHALL NOTIF Y THE COMMISSIONER WHICH OF THE TWO 29
METHODS THE PROVIDER INTENDS TO USE WHEN CALCULATING THE ESTI MATED 30
ANNUAL PERCENTAGE OF EACH SALES–BASED FINANCING TRAN SACTION. 31
(D) (1) ON OR BEFORE JANUARY 1 EACH YEAR, A PROVIDER SHALL 32
REPORT TO THE COMMISSIONER ON : 33 HOUSE BILL 574 9
(I) THE ESTIMATED ANNUAL PERCENTAGE RATES GIV EN TO 1
EACH RECIPIENT ; AND 2
(II) THE ACTUAL ANNUAL PER CENTAGE RATES OF EAC H 3
COMPLETED SALES –BASED FINANCING TRAN SACTION. 4
(2) (I) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 5
SUBSECTION SHALL CON TAIN ANY INFORMATION THE COMMISSIONER CONSIDER S 6
NECESSARY TO DETERMI NE WHETHER TH E DEVIATION BETWEEN THE ESTIMATED 7
ANNUAL PERCENTAGE RA TES AND ACTUAL ANNUA L PERCENTAGE RATES O F 8
COMPLETED SALES –BASED FINANCING TRAN SACTIONS IS REASONAB LE. 9
(II) THE COMMISSIONER MAY CONS IDER EXTRAORDINARY 10
CIRCUMSTANCES WHEN D ETERMINING WHETHER T HE PROV IDER’S DEVIATION 11
BETWEEN THE ESTIMATE D ANNUAL PERCENTAGE RATE AND ACTUAL ANNU AL 12
PERCENTAGE RATE OF A SALES–BASED FINANCING TRAN SACTION IS REASONABL E. 13
(III) IF THE COMMISSIONER FINDS TH AT THERE WAS AN 14
UNREASONABLE DEVIATI ON BETWEEN ESTIMATED AND ACTUAL ANNUAL 15
PERCENTAGE RATES OF SALES–BASED FINANCING TRAN SACTIONS, THE 16
COMMISSIONER MAY REQU IRE THE PROVIDER TO USE THE HISTORICAL M ETHOD 17
INSTEAD OF THE OPT –IN METHOD IN DETERMI NING THE PROJECTED S ALES VOLUME 18
OF THE RECIPIENT . 19
12–1206. 20
(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 21
DISBURSEMENT AMOUNT OF A CLOSED–END FINANCING TRANSA CTION PLUS THE 22
FINANCE CHARGE . 23
(B) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO 24
A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER FOR CLOSED –END FINANCING : 25
(I) THE TOTAL AMOUNT OF T HE CLOSED–END FINANCING AND 26
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 27
MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 28
(II) THE TOTAL REPAYMENT A MOUNT; 29
(III) THE FINANCE CHARGE ; 30
10 HOUSE BILL 574
(IV) THE ANNUAL PERCENTAGE RA TE OF THE CLOSED –END 1
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”; 3
(V) THE TERM OF THE FINAN CING; 4
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 5
PROJECTED PERIODIC P AYMENT AMOUNTS ; 6
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 7
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES , LATE 8
PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 9
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 10
REQUIREMENTS OR SECU RITY INTERESTS. 11
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 12
SHALL DISCLOSE : 13
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 14
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 15
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 16
(II) FOR PAYMENT AMO UNTS THAT ARE VARIAB LE, A PROVIDER 17
SHALL DISCLOSE : 18
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 19
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 20
2. THE AMOUNT OF THE AVE RAGE PROJECTED 21
PAYMENTS PER MONTH . 22
(3) THE ANNUAL PE RCENTAGE RATE REQUIR ED TO BE DISCLOSED 23
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION S HALL BE: 24
(I) EXPRESSED AS A YEARLY RATE, INCLUSIVE OF ANY FEE S 25
AND FINANCE CHARGES THAT CANNOT BE AVOID ED BY A RECIPIENT ; AND 26
(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 27
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22, REGARDLESS OF 28
WHETHER FEDERAL LAW OR REGULATION WOULD REQUIRE THE CALCULAT ION. 29
HOUSE BILL 574 11
(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE CLOSED–END 1
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 2
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 3
PAY: 4
(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 5
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 6
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 7
CHARGE. 8
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 9
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 10
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 11
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 12
RECIPIENT COULD BE REQ UIRED TO PAY. 13
12–1207. 14
(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE DRAW 15
AMOUNT OF THE OPEN –END FINANCING TRANSA CTION, MINUS ANY FEES DEDUC TED 16
OR WITHHELD AT DISBU RSEMENT, PLUS THE FINANCE CHA RGE. 17
(B) (1) WHEN CALCULATIN G THE TOTAL REPAYMEN T AMOUNT IN 18
ACCORDANCE WITH THIS SECTION, A PROVIDER SHALL ASS UME A DRAW AMOUNT 19
EQUAL TO THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE TO THE RECIPI ENT IF 20
DRAWN AND HELD FOR T HE DURATION OF THE T ERM OR DRAW PERIOD . 21
(2) WHEN CALCULATING A FI NANCE CHARGE IN ACCO RDANCE WITH 22
THIS SECTION, A PROVIDER SHALL ASS UME THE MAXIMUM AMOU NT OF CREDIT 23
AVAILABLE TO THE REC IPIENT, IN EACH CASE , IS DRAWN AND HELD FO R THE 24
DURATION OF THE TERM OF THE DRAW PERIOD . 25
(C) (1) A PROVIDER SHALL DISCL OSE THE FOLLOWIN G INFORMATION TO 26
A RECIPIENT WHEN EXT ENDING A SPECIFIC OF FER FOR OPEN–END FINANCING : 27
(I) THE MAXIMUM AMOUNT OF CREDIT AVAILABLE TO THE 28
RECIPIENT AND THE AM OUNT SCHEDULED TO BE DRAWN BY THE RECIPIE NT AT THE 29
TIME THE OFFER IS EX TENDED, IF ANY, MINUS ANY FEES DEDUCTED OR WIT HHELD 30
AT DISBURSEMENT ; 31
(II) THE FINANCE CHARGE ; 32
(III) THE TOTAL REPAYMENT A MOUNT; 33 12 HOUSE BILL 574
(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 1
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”; 3
(V) THE TERM OF THE PLAN , IF APPLICABLE, OR THE PERIOD 4
OVER WHICH A DRAW IS AMORTIZED; 5
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6
PAYMENT FREQUENCY AN D AMOUNTS; 7
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 8
CHARGES NOT INCLUDED IN THE FINANCE CHARGE , INCLUDING DRAW FEES , LATE 9
PAYMENT FEES , AND RETURNED PAYMENT FEES; AND 10
(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 11
REQUIREMENTS OR SECU RITY INTERESTS. 12
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 13
SHALL DISCLOSE : 14
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 15
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 16
MONTHLY, THE AMOUNT OF THE AV ERAGE PROJECTED PAYM ENTS PER MONTH . 17
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 18
SHALL DISCLOSE : 19
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF T HE 20
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 21
2. THE AMOUNT OF THE AVE RAGE PROJECTED 22
PAYMENTS PER MONTH . 23
(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 24
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION SHALL BE: 25
(I) EXPRESSED AS A NOMINA L YEARLY RATE , INCLUSIVE OF 26
ANY FEES AND FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECI PIENT; 27
(II) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH 28
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 29
HOUSE BILL 574 13
(III) BASED ON THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE 1
TO THE RECIPIENT AND THE TERM RESULTING F ROM MAKING THE MINIM UM 2
REQUIRED PAYMENTS AS DISCLOSED, REGARDLESS OF WHETHE R FEDERAL LAW OR 3
REGULATION WOULD REQ UIRE THE CALCULATION . 4
(D) (1) IF A RECIPIENT PA YS OFF OR REFINANCES THE OPEN–END 5
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 6
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 7
PAY: 8
(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 9
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT; AND 10
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 11
CHARGE. 12
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 13
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 14
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENT AGE OF ANY UNPAID 15
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 16
RECIPIENT COULD BE R EQUIRED TO PAY . 17
12–1208. 18
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 19
INDICATED. 20
(2) “FINANCE CHARGE ” INCLUDES A DISCOUNT TAKEN ON THE FACE 21
VALUE OF THE ACCOUNT S RECEIVABLE. 22
(3) “TOTAL PAYMENT AMOUNT ” MEANS THE PURCHASE A MOUNT OF 23
THE FACTORING TRANSA CTION PLUS THE FINAN CE CHARGE. 24
(B) A PROVIDER SHALL DISCL OSE THE FOLLOWING IN FORMATION TO A 25
RECIPIENT WHEN EXTEN DING A SPECIFIC OFFE R FOR A FACTORING TRAN SACTION: 26
(1) THE AMOUNT OF THE REC EIVABLES PURCHASE PR ICE PAID TO 27
THE RECIPIENT AND , IF DIFFERENT FROM TH E PURCHASE PRICE , THE 28
DISBURSEMENT AMOUNT AFTER ANY FEES DEDUC TED OR WITHHELD AT 29
DISBURSEMENT ; 30
(2) THE TOTAL PAYMENT AMO UNT; 31
(3) THE FINANCE CHARGE ; 32 14 HOUSE BILL 574
(4) THE ANNUAL PERCENTAGE RATE OF THE FACTORIN G 1
TRANSACTION , USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”, CALCULATED ACCORDING TO THE FEDERAL TRUTH IN 3
LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE 4
ADVANCE, SINGLE PAYMENT TRANS ACTION”; 5
(5) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND CHARGES 6
THAT CAN BE AVOIDED BY THE RECIPIENT ; AND 7
(6) A DESCRIPTION OF THE R ECEIVABLES PURCHASED AND, IF 8
APPLICABLE, ANY ADDITIONAL COLLATERAL REQUIREME NTS OR SECURITY 9
INTERESTS. 10
(C) (1) FOR PURPOSES OF THIS SUBSECTION, THE ANNUAL PERCENTAG E 11
RATE SHALL BE CALCUL ATED ACCORDING TO TH E FEDERAL TRUTH IN LENDING 12
ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE ADVANCE , 13
SINGLE PAYMENT TRANSACT ION”, REGARDLESS OF WHETHE R FEDERAL LAW OR 14
REGULATION WOULD REQ UIRE AN ANNUAL PERCE NTAGE RATE TO BE CAL CULATED 15
FOR A CERTAIN TRANSA CTION. 16
(2) (I) SUBJECT TO SUBPARAGRA PH (II) OF THIS PARAGRAPH , A 17
PROVIDER SHALL USE T HE FOLLOWING INFO RMATION TO CALCULATE THE 18
ESTIMATED ANNUAL PER CENTAGE RATE IN ACCO RDANCE WITH THIS SEC TION: 19
1. THE PURCHASE AMOUNT I S THE FINANCING AMOU NT; 20
2. THE PAYMENT AMOUNT IS THE PURCHASE AMOUNT 21
MINUS THE FINANCE CH ARGE; AND 22
3. THE TERM OF THE FACTO RING TRANSACTION IS 23
DETERMINED BY THE PA YMENT DUE DATE OF TH E RECEIVABLES . 24
(II) A PROVIDER MAY ESTIMAT E THE TERM FOR A FAC TORING 25
TRANSACTION AS THE A VERAGE PAYMENT PERIO D, USING HISTORICAL DAT A OVER 26
A PERIOD NOT TO EXCE ED THE PREVIOUS 12 MONTHS, CONCERNIN G PAYMENT 27
INVOICES PAID BY THE PARTY OWING THE ACCO UNTS RECEIVABLE IN Q UESTION. 28
12–1209. 29
(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 30
DISBURSEMENT AMOUNT OF A COMMERCIAL FINA NCING TRANSACTION PL US THE 31
FINANCE CHARGE . 32
HOUSE BILL 574 15
(B) A PROVIDER MAY EXTE ND A SPECIFIC OFFER OF COMMERCIAL 1
FINANCING THAT IS NO T AN OPEN–END FINANCING , A CLOSED–END FINANCING , A 2
SALES–BASED FINANCING , OR A FACTORING TRANS ACTION BUT OTHERWISE MEETS 3
THE DEFINITION OF CO MMERCIAL FINANCING U NDER THIS SUBTITLE . 4
(C) (1) IF A PROVID ER EXTENDS A SPECIFI C OFFER THAT IS NOT AN 5
OPEN–END FINANCING , A CLOSED–END FINANCING , A SALES–BASED FINANCING , OR 6
A FACTORING TRANSACT ION BUT OTHERWISE ME ETS THE DEFINITION O F 7
COMMERCIAL FINANCING UNDER THIS SUBTITLE , THE PROVIDER SHALL D ISCLOSE: 8
(I) THE TOTAL AMOUNT OF T HE COMMERCIAL FINANC ING 9
INCLUDING THE DISBUR SEMENT AMOUNT , IF DIFFERENT FROM TH E FINANCING 10
AMOUNT, MINUS ANY FEES DEDUC TED OR WITHHELD AT D ISBURSEMENT ; 11
(II) THE TOTAL REPAYMENT A MOUNT; 12
(III) THE FINANCE CHARGE ; 13
(IV) THE ANNUAL PERCENTAGE RA TE OF THE COMMERCIAL 14
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 15
ABBREVIATION “APR”, EXPRESSED AS A YEARL Y RATE, INCLUSIVE OF ANY FEE S 16
AND FINANCE CHARGES , AND CALCULATED IN AC CORDANCE WITH THE RE LEVANT 17
SECTIONS OF THE FE DERAL TRUTH IN LENDING ACT, REGULATION Z, 12 C.F.R. § 18
1026.22, OR THIS ARTICLE , REGARDLESS OF WHETHE R FEDERAL LAW , THE 19
REGULATION , OR THIS ARTICLE WOUL D REQUIRE THE CALCUL ATION; 20
(V) THE TERM OF THE COMME RCIAL FINANCING ; 21
(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 22
PAYMENT FREQUENCY AN D AMOUNTS; 23
(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 24
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING LATE PAYME NT 25
FEES AND RETURNED PA YMENT FEES; AND 26
(VIII) IF APPLICABLE , A DESCRIPTION OF COLLATERAL 27
REQUIREMENTS OR SECU RITY INTERESTS. 28
(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 29
SHALL DISCLOSE : 30
1. THE PAYMENT AMOUNTS A ND FREQUENCY ; AND 31
16 HOUSE BILL 574
2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 1
MONTHLY, THE AMOUNT OF THE AV ERAGE PRO JECTED PAYMENTS PER MONTH. 2
(II) FOR PAYMENT AMOUNTS T HAT ARE VARIABLE , A PROVIDER 3
SHALL DISCLOSE : 4
1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 5
METHOD USED TO CALCU LATE THE AMOUNTS AND FREQUENCY OF PAYMENT S; AND 6
2. THE AMOUNT OF THE AVE RAGE PROJECTED 7
PAYMENTS PER MONTH . 8
(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE COMMERCIAL 9
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 10
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 11
PAY: 12
(I) ANY FINANCE CHARGES OTHER THAN THE INTER EST 13
ACCRUED SINCE THE RE CIPIENT’S LAST PAYMENT ; AND 14
(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 15
CHARGE. 16
(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 17
FINANCE CHARGES OTHE R THAN THE INTEREST ACCRUED SINCE THE RE CIPIENT’S 18
LAST PAYMENT , A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 19
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 20
RECIPIENT COULD BE R EQUIRED TO PAY . 21
12–1210. 22
(A) A PROVIDER MAY REQUIRE A RECIPIENT TO PAY O FF THE BALANCE OF 23
AN EXISTING COMMERCIAL FINANCING TRANSACTIO N FROM THE SAME PROV IDER 24
AS A CONDITION OF OB TAINING A NEW OR REN EWAL COMMERCIAL FINA NCING 25
TRANSACTION . 26
(B) IF A PROVIDER REQUIRE S A RECIPIENT TO PAY OFF A COMMERCIAL 27
FINANCING TRANSACTIO N BEFORE OBTAINING A NEW OR RENEWAL COMMERCIAL 28
FINANCING TRANSACTIO N, THE PROVIDER SHALL D ISCLOSE: 29
(1) THE AMOUNT OF THE NEW OR RENEWAL COMMERCIA L FINANCING 30
THAT WILL BE USED TO PAY OFF THE PORTION OF THE EXISTING COMM ERCIAL 31
FINANCING THAT CONSI STS OF ANY REQUIRED PREPAYMENT CHAR GES; AND 32
HOUSE BILL 574 17
(2) ANY UNPAID INTEREST T HAT WAS NOT FORGIVEN AT THE TIME 1
THE NEW OR RENEWAL C OMMERCIAL FINANCING WAS ENTERED INTO . 2
(C) (1) FOR FINANCING FOR WHI CH THE TOTAL REPAYME NT AMOUNT IS 3
CALCULATED AS A FIXE D AMOUNT, THE PREPAYMENT CHARG E IS EQUAL TO THE 4
ORIGINAL FINANCE CHA RGE MULTIPLIED BY TH E AMOUNT OF THE NEW OR 5
RENEWAL COMMERCIAL F INANCING USED TO PAY OFF THE EXISTING COM MERCIAL 6
FINANCING TRANSACTIO N AS A PERCENTAGE OF THE TOTAL REPAYMENT AMOUNT, 7
MINUS ANY PORTION OF THE TOTAL REPAYMENT AMOUNT FOR GIVEN BY THE 8
PROVIDER AT THE TIME OF PREPAYMENT . 9
(2) IF THE PREPAYMENT CHA RGE IS MORE THAN ZER O, THE 10
PROVIDER SHALL RECOR D THE AMOUNT AS THE ANSWER TO THE FOLLOW ING 11
QUESTION: 12
“DOES THE NEW OR RENEW AL COMMERCIAL FINANC ING TRANSACTION INCL UDE 13
ANY AMOUNT THAT IS USED TO PAY UNPAID FINANCE CHARG ES OR FEES, ALSO 14
KNOWN AS DOUBLE DIPP ING? YES, (ENTER AMOUNT )”. 15
(D) IF THE DISBURSEMENT A MOUNT OF THE NEW OR RENEWAL 16
COMMERCIAL FINANCING TRANSACTION WILL BE REDUCED TO PAY DOWN ANY 17
UNPAID PORTION OF TH E OUTSTANDIN G BALANCE OF THE EXI STING COMMERCIAL 18
FINANCING, THE PROVIDER SHALL D ISCLOSE THE ACTUAL D OLLAR AMOUNT BY 19
WHICH THE DISBURSEME NT AMOUNT WILL BE RE DUCED. 20
12–1211. 21
A RECIPIENT SHALL SIGN , MANUALLY OR ELECTRON ICALLY, EACH 22
APPLICABLE DISCLOSUR E REQUIRED UNDER THIS SUBTITLE BEFORE A PROVIDER 23
MAY ALLOW THE RECIPI ENT TO PROCEED WITH THE COMMERCIAL FINAN CING 24
APPLICATION. 25
12–1212. 26
(A) (1) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PREVENT A 27
PROVIDER FROM DISCLO SING ADDITIONAL INFO RMATION TO A RECIPIE NT 28
REGARDING A COMMERCIAL FIN ANCING TRANSACTION . 29
(2) IF A PROVIDER PROVIDE S AN ADDITIONAL DISC LOSURE TO A 30
RECIPIENT OTHER THAN WHAT IS REQUIRED BY THIS SUBTITLE, THE ADDITIONAL 31
DISCLOSURE IS NOT CO NSIDERED A REQUIRED DISCLOSURE UNDER THI S SUBTITLE. 32
(B) (1) IF ADDITIONAL METRICS O F FINANCING COSTS AR E DISCLOSED 33
OR USED IN THE APPLI CATION PROCESS FOR C OMMERCIAL FINANCING , THE 34 18 HOUSE BILL 574
ADDITIONAL METRICS M AY NOT BE PRESENTED AS A RATE IF THEY AR E NOT THE 1
ANNUAL INTEREST RATE OR THE ANNUAL PERCEN TAGE RATE. 2
(2) THE TERM “INTEREST”, WHEN USED TO DESCRIB E A PERCENTAGE 3
RATE, MAY BE USED ONLY TO DESCRIBE ANNUAL PERC ENTAGE RATES , INCLUDING 4
THE ANNUAL INTEREST RATE. 5
(C) IF A PROVIDER STATES A RATE OF FINANCE CH ARGE OR A FINANCING 6
AMOUNT TO A RECIPIEN T DURING THE APPLICA TION PROCESS FOR COMMERCIAL 7
FINANCING, THE PROVIDER SHALL A LSO STATE THE RATE A S AN “ANNUAL 8
PERCENTAGE RATE ”, USING THAT TERM OR T HE ABBREVIATION “APR”. 9
12–1213. 10
(A) TO CARRY OUT THIS SUB TITLE, THE COMMISSIONER SHALL AD OPT 11
REGULATIONS SUBSTANT IALLY THE SAME AS REGULATIONS ADOPTED BY THE NEW 12
YORK STATE DEPARTMENT OF FINANCIAL SERVICES REGARDING CO MMERCIAL 13
FINANCING. 14
(B) THE COMMISSIONER SHALL AP PROVE THE USE OF COM MERCIAL 15
FINANCING DISCLOSURE FORMS APPROVED FOR U SE IN OTHER STATES W ITH 16
COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS THAT ARE SUBSTANTIAL LY 17
SIMILAR TO OR EXCEED THE REQUIREMENTS OF THIS SUBTITLE. 18
12–1214. 19
(A) (1) THE COMMISSIONER SHALL IM POSE A CIVIL PENALTY NOT 20
EXCEEDING: 21
(I) $2,000 FOR EACH VIOLATION O F THIS SUBTITLE; AND 22
(II) $10,000 FOR EACH WILLFUL VIOL ATION OF THIS SUBTIT LE. 23
(2) THE COMMISSIONER MAY ORDE R ADDITIONAL RELIEF , 24
INCLUDING RESTITUTIO N OR A PERMANENT OR PRELIMINARY INJUNCTI ON ON 25
BEHALF OF A RECIPIEN T AFFECTED BY A VIOL ATION OF THIS SUBTIT LE. 26
(B) IF A COMPLAINT ABOUT A VIOLATION OF THIS SU BTITLE IS FILED WITH 27
THE COMMISSIONER , THE COMMISSIONER MAY INVE STIGATE THE COMPLAIN T AND 28
USE ANY OF THE INVES TIGATIVE AND ENFORCE MENT POWERS PROVIDED UNDER 29
TITLE 2, SUBTITLE 1 OF THIS ARTICLE. 30
SECTION 2. AND BE IT FURTHER ENACTED, Th at this Act shall take effect 31
October 1, 2024. 32