MD
Maryland House Bill HB1040

Maryland 2025 Regular Session

Maryland House Bill HB1040 Compare Versions

Only one version of the bill is available at this time.
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33 EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
44 [Brackets] indicate matter deleted from existing law.
55 *hb1040*
66
77 HOUSE BILL 1040
88 N1, C9 5lr2652
99 HB 1035/24 – ENT CF 5lr3563
1010 By: Delegates Rosenberg and Ruff
1111 Introduced and read first time: February 5, 2025
1212 Assigned to: Environment and Transportation
1313
1414 A BILL ENTITLED
1515
1616 AN ACT concerning 1
1717
1818 Real Property – Insufficient Condominium Reserve Account Grant Fund – 2
1919 Establishment 3
2020
2121 FOR the purpose of requiring certain regulated financial institutions to develop a 4
2222 community benefit plan in connection with certain applications to the Commissioner 5
2323 of Financial Regulation relating to financial services; requiring certain regulated 6
2424 financial institutions to submit to the Commissioner and make available to the 7
2525 public a report on community benefit goal attainment under certain circumstances; 8
2626 requiring the Commissioner to exercise certain oversight authority relating to the 9
2727 adequacy of the community benefit plans and attainment of goals under the plans; 10
2828 requiring the Commissioner to establish a certain community benefit review 11
2929 committee; establishing the Community Reinvestment Fund as a special, nonlapsing 12
3030 fund to finance certain community dev elopment activities; requiring the 13
3131 Commissioner to contract with certain persons to conduct a certain disparity study; 14
3232 and generally relating to financial institutions and community development. 15
3333
3434 BY repealing and reenacting, without amendments, 16
3535 Article – Financial Institutions 17
3636 Section 1–101(a), (d), (e), (g), and (i), 2–118(a) and (b), and 2–120(a)(1) through (3) 18
3737 and (b) 19
3838 Annotated Code of Maryland 20
3939 (2020 Replacement Volume and 2024 Supplement) 21
4040
4141 BY adding to 22
4242 Article – Financial Institutions 23
4343 Section 1–501 through 1–507 to be under the new subtitle “Subtitle 5. Community 24
4444 Benefit Plan”; and 2–118.2 and 6–712(c)(5) 25
4545 Annotated Code of Maryland 26
4646 (2020 Replacement Volume and 2024 Supplement) 27
4747
4848 BY repealing and reenacting, with amendments, 28 2 HOUSE BILL 1040
4949
5050
5151 Article – Financial Institutions 1
5252 Section 2–118(c), 2–120(c), 5–203(b) and (e), 6–712(c)(1), and 11–503.1 2
5353 Annotated Code of Maryland 3
5454 (2020 Replacement Volume and 2024 Supplement) 4
5555
5656 BY repealing and reenacting, without amendments, 5
5757 Article – State Finance and Procurement 6
5858 Section 6–226(a)(2)(i) 7
5959 Annotated Code of Maryland 8
6060 (2021 Replacement Volume and 2024 Supplement) 9
6161
6262 BY repealing and reenacting, with amendments, 10
6363 Article – State Finance and Procurement 11
6464 Section 6–226(a)(2)(ii)204. and 205. 12
6565 Annotated Code of Maryland 13
6666 (2021 Replacement Volume and 2024 Supplement) 14
6767
6868 BY adding to 15
6969 Article – State Finance and Procurement 16
7070 Section 6–226(a)(2)(ii)206. 17
7171 Annotated Code of Maryland 18
7272 (2021 Replacement Volume and 2024 Supplement) 19
7373
7474 SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
7575 That the Laws of Maryland read as follows: 21
7676
7777 Article – Financial Institutions 22
7878
7979 1–101. 23
8080
8181 (a) In this article, unless the context clearly requires otherwise, the following 24
8282 words have the meanings indicated. 25
8383
8484 (d) “Banking institution” means an institution that is incorporated under the 26
8585 laws of this State as a State bank, trust company, or savings bank. 27
8686
8787 (e) “Charter” has the meaning stated in § 1–101 of the Corporations and 28
8888 Associations Article. 29
8989
9090 (g) “Commissioner” means the Commissioner of Financial Regulation in the 30
9191 Maryland Department of Labor. 31
9292
9393 (i) “Credit union” means a credit union that is incorporated under the laws of this 32
9494 State as a credit union. 33
9595
9696 SUBTITLE 5. COMMUNITY BENEFIT PLAN. 34
9797 HOUSE BILL 1040 3
9898
9999
100100 1–501. 1
101101
102102 (A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
103103 INDICATED. 3
104104
105105 (B) “APPLICATION FOR A DEP OSIT FACILITY OR LIC ENSE” MEANS AN 4
106106 APPLICATION TO THE COMMISSIONER FOR : 5
107107
108108 (1) A CHARTER FOR A BANKIN G INSTITUTION OR A C REDIT UNION; 6
109109
110110 (2) THE ESTABLISHMENT OF A DOMESTIC BRANCH OR OTHER 7
111111 FACILITY WITH THE ABILITY TO A CCEPT DEPOSITS FOR A REGULATED FINANCIAL 8
112112 INSTITUTION; 9
113113
114114 (3) THE RELOCATION OF THE HOME OFFICE OR A BRA NCH OFFICE OF 10
115115 A REGULATED FINANCIA L INSTITUTION; 11
116116
117117 (4) THE MERGER OR CONSOLI DATION WITH, OR THE ACQUISITION O F 12
118118 THE ASSETS, OR THE ASSUMPTION OF THE LIAB ILITIES OF A REGULAT ED FINANCIAL 13
119119 INSTITUTION; 14
120120
121121 (5) THE ACQUISITION OF SH ARES IN, OR THE ASSETS OF , A 15
122122 REGULATED FINANCIAL INSTITUTION REQUIRIN G APPROVAL UNDER STATE LAW; OR 16
123123
124124 (6) AN INITIAL LICENSE OR RENEWAL LICENSE TO M AKE LOANS OR 17
125125 TO OFFER OTHER FINAN CIAL SERVICES. 18
126126
127127 (C) “COMMUNITY BENEFIT PLA N” MEANS A PLAN CREATED BY A 19
128128 REGULATED FINANCIAL INSTITUTION THAT : 20
129129
130130 (1) PROVIDES MEASURABLE A ND VERIFIABLE GOALS FOR FUTURE 21
131131 AMOUNTS OF SAFE AND SOUND LOANS , INVESTMENTS , GRANTS, SERVICES, AND 22
132132 OTHER FINANCIAL PROD UCTS FOR LOW– AND MODERATE –INCOME INDIVIDUALS 23
133133 AND COMMUNITIES AND OTHER DISTRESSED OR UNDERSERVED INDIVIDU ALS AND 24
134134 COMMUNITIES ; 25
135135
136136 (2) HAS GOALS THAT ARE DE VELOPED IN REFERENCE TO PAST 26
137137 LEVELS OF LENDING , INVESTMENTS , GRANTS, AND SERVICES; 27
138138
139139 (3) INCLUDES COMPARISONS TO DEMOGRAPHIC BENCH MARKS AND 28
140140 PEER OR INDUSTRY LEV ELS OF ACTIVITIES; AND 29
141141 4 HOUSE BILL 1040
142142
143143
144144 (4) INCLUDES DOCUMENTATIO N OF INPUT FROM COMM UNITY–BASED 1
145145 ORGANIZATIONS AND OT HER STAKEHOLDERS . 2
146146
147147 (D) “COMMUNITY DEVELOPMENT ” INCLUDES: 3
148148
149149 (1) AFFORDABLE HOUSING FO R LOW– OR MODERATE –INCOME 4
150150 INDIVIDUALS; 5
151151
152152 (2) AVOIDANCE OF PATTERNS OF LENDING RESULTING IN THE LOSS 6
153153 OF AFFORDABLE HOUSIN G UNITS; 7
154154
155155 (3) COMMUNITY DEVELOPMENT SERVICES, INCLUDING COUNSELING 8
156156 AND SUCCESSFUL MORTG AGE OR LOAN MODIFICA TIONS OF DELINQUENT LOANS ; 9
157157
158158 (4) ACTIVITIES THAT PROMO TE: 10
159159
160160 (I) INTEGRATION ; 11
161161
162162 (II) CLIMATE REMEDIATION A ND DISASTER PREPARED NESS; 12
163163
164164 (III) ECONOMIC DEVELOPMENT BY FINANCING SMALL 13
165165 BUSINESSES OR FARMS THAT MEET THE SIZE E LIGIBILITY REQUIREME NTS OF THE 14
166166 DEVELOPMENT COMPANY OR SMALL BUSINESS IN VESTMENT COMPANY PRO GRAMS 15
167167 UNDER 13 C.F.R. § 121.301, OR ANY SUCCESSOR REG ULATION, WITH AN EMPHASIS 16
168168 ON SMALL BUSINESSES THAT HAVE GROSS ANNU AL REVENUES OF NOT M ORE THAN 17
169169 $1,000,000; OR 18
170170
171171 (IV) PHYSICAL AND SENSORY ACCESSIBILITY IN HOUSIN G 19
172172 STOCK THAT IS INTEGR ATED INTO THE COMMUN ITY; 20
173173
174174 (5) ACTIVITIES THAT REVIT ALIZE OR STABILIZE : 21
175175
176176 (I) LOW– OR MODERATE –INCOME GEOGRAPHIC AR EAS; 22
177177
178178 (II) DESIGNATED DISASTER A REAS; 23
179179
180180 (III) OTHER DISTRESSED OR U NDERSERVED COMMUNITI ES; OR 24
181181
182182 (IV) DISTRESSED OR UNDERSE RVED NONMETROPOLITAN 25
183183 MIDDLE–INCOME GEOGRAPHIC AR EAS OR OTHER GEOGRAP HIC AREAS DESIGNATED 26
184184 BY THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL; AND 27
185185 HOUSE BILL 1040 5
186186
187187
188188 (6) OTHER ACTIVITIES THAT PROMOTE THE OBJECTIV ES OF THIS 1
189189 SUBTITLE, AS DETERMINED BY THE REGULATIONS IMPLEMEN TING THE FEDERAL 2
190190 COMMUNITY REINVESTMENT ACT OR BY THE COMMISSIONER . 3
191191
192192 (E) “OTHER DISTRESSED OR U NDERSERVED COMMUNITY ” MEANS A 4
193193 COUNTY, CENSUS TRACT , OR OTHER AREA THAT , ACCORDING TO A PERIO DIC 5
194194 REVIEW AND DATA ANAL YSIS BY THE COMMISSIONER OR THE A PPROPRIATE 6
195195 FEDERAL FINANCIAL SU PERVISORY AGENCIES O N AN INTERAGENCY BAS IS 7
196196 THROUGH THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL, IS 8
197197 EXPERIENCING ECONOMI C HARDSHIP OR IS UND ERSERVED BY FINANCIA L 9
198198 INSTITUTIONS, INCLUDING BY HAVING A LOW LEVE L OF LOANS PER HOUSE HOLD OR 10
199199 PER SMALL BUSINESS . 11
200200
201201 (F) “OTHER UNDERSERVED POP ULATIONS” MEANS A POPULATION T HAT 12
202202 EXPERIENCES ONGOING EFFECTS OF DISCRIMIN ATION OR IS RELATIVE LY 13
203203 UNDERSERVED BY FINAN CIAL INSTITUTIONS AS MEASURED BY LOANS PE R CAPITA 14
204204 OR OTHER SIMILAR MET RICS. 15
205205
206206 (G) “REGULATED FINANCIAL I NSTITUTION” MEANS: 16
207207
208208 (1) A BANKING INSTITUTION AS DEFINED IN § 1–101 OF THIS TITLE; 17
209209
210210 (2) A CREDIT UNION AS DEFI NED IN § 1–101 OF THIS TITLE; OR 18
211211
212212 (3) A NONDEPOSITORY MORTGA GE COMPANY . 19
213213
214214 1–502. 20
215215
216216 (A) THE GENERAL ASSEMBLY FINDS THAT : 21
217217
218218 (1) A REGULATED FINANCIAL INSTITUTION IS REQUI RED BY LAW TO 22
219219 DEMONSTRATE THAT IT SERVES THE CONVENIEN CE AND NEEDS OF THE 23
220220 COMMUNITIES WHERE TH E REGULATED FINANCIA L INSTITUTION IS CHA RTERED TO 24
221221 DO BUSINESS; 25
222222
223223 (2) THE CONVENIENCE AND NEED S OF COMMUNITIES INC LUDE THE 26
224224 NEED FOR CREDIT , DEPOSIT SERVICES , AND OTHER FINANCIAL PRODUCTS; 27
225225
226226 (3) A REGULATED FINANCIAL INSTITUTION HAS A CO NTINUING AND 28
227227 AFFIRMATIVE OBLIGATI ON TO SERVE COMMUNIT Y NEEDS; AND 29
228228 6 HOUSE BILL 1040
229229
230230
231231 (4) A REGULATED FINANCI AL INSTITUTION MUST DEMONSTRATE 1
232232 RESPONSIVENESS TO CO MMUNITY NEEDS BY DEV ELOPING A COMMUNITY BENEFITS 2
233233 PLAN WHEN SUBMITTING AN APPLICATION FOR A DEPOSIT FACILITY OR LICENSE. 3
234234
235235 (B) THE PURPOSE OF THIS S UBTITLE IS TO REQUIR E THE COMMISSIONER 4
236236 TO ENCOURAGE REGUL ATED FINANCIAL INSTI TUTIONS TO MEET THE FINANCIAL 5
237237 NEEDS OF THE LOCAL C OMMUNITIES WHERE THE REGULATED FINANCIAL 6
238238 INSTITUTIONS ARE CHA RTERED CONSISTENT WI TH THE SAFE AND SOUN D 7
239239 OPERATION OF THE REG ULATED FINANCIAL INS TITUTIONS. 8
240240
241241 1–503. 9
242242
243243 (A) THE COMMISSIONER S HALL CONTRACT WITH Q UALIFIED PERSONS TO 10
244244 CONDUCT A DISPARITY STUDY TO IDENTIFY UN DERSERVED COUNTIES , 11
245245 POPULATIONS , AND CENSUS TRACTS IN THE STATE. 12
246246
247247 (B) THE DISPARITY STUDY S HALL IDENTIFY SEGMEN TS OF THE 13
248248 POPULATION THAT ARE UNDERSERVED DUE TO D ISCRIMINATION BY 14
249249 METROPOLITAN AREA AN D BY URBAN AND RURAL COUNTIES. 15
250250
251251 (C) THE DISPARITY STUDY S HALL BE: 16
252252
253253 (1) COMPLETED ON OR BEFOR E DECEMBER 1, 2025; 17
254254
255255 (2) UPDATED ONCE EVERY 3 YEARS THEREAFTER ; AND 18
256256
257257 (3) MADE AVAILABLE TO THE PUBLIC. 19
258258
259259 1–504. 20
260260
261261 (A) THIS SECTION DOES NOT APPLY TO A NONDEPOSI TORY MORTGAGE 21
262262 COMPANY THAT ISSUES FEWER THAN 50 SINGLE–FAMILY HOME LOANS ON AN 22
263263 ANNUAL BASIS. 23
264264
265265 (B) (1) A REGULATED FINANCIAL INSTITUTION SHALL DE VELOP A 24
266266 COMMUNITY BENEFIT PL AN IN CONNECTION WIT H AN APPLICATION FOR A DEPOSIT 25
267267 FACILITY OR LICENSE . 26
268268
269269 (2) A COMMUNITY BENEFIT PL AN SHALL: 27
270270
271271 (I) HAVE A DURATION OF 3 YEARS; AND 28
272272 HOUSE BILL 1040 7
273273
274274
275275 (II) INCLUDE GOALS ESTABLI SHED FOR EACH YEAR F OR RETAIL 1
276276 LENDING AND COMMUNIT Y DEVELOPMENT LENDIN G, INVESTMENT, 2
277277 GRANTMAKING , AND SERVICES. 3
278278
279279 (3) ON THE EXPIRATION OF A COMMUNITY BENEFIT PLAN, A 4
280280 REGULATED FINANCIAL INSTITUTION SHALL AD OPT A NEW COMMUNITY BENEFIT 5
281281 PLAN. 6
282282
283283 (4) (I) BEFORE ADOPTING A COM MUNITY BENEFIT PLAN , A 7
284284 REGULATED FINANCIAL INSTITUTION SHALL SU BMIT A DRAFT OF THE PLAN TO THE 8
285285 COMMISSIONER. 9
286286
287287 (II) THE COMMISSIONER SHALL ES TABLISH A PUBLIC 10
288288 COMMENT PERIOD OF NO T LESS THAN 60 DAYS DURING WHICH ME MBERS OF THE 11
289289 PUBLIC MAY PROVIDE C OMMENTS ON THE DRAFT COMMUNITY BENEFIT PL AN. 12
290290
291291 (III) A REGULATED FINANCIAL INSTITUTION SHALL RE VISE THE 13
292292 DRAFT COMMUNITY BENE FIT PLAN IN RESPONSE TO PUBLIC COMMENTS O N THE 14
293293 PLAN. 15
294294
295295 (IV) THE COMMISSIONER MAY REQU IRE A REGULATED 16
296296 FINANCIAL INSTITUTIO N TO REVISE A DRAFT COMMUNITY BENEFIT PL AN IN 17
297297 RESPONSE TO PUBLIC C OMMENTS ON THE PLAN . 18
298298
299299 (5) (I) WHEN RENEWING A LICENSE DURING A Y EAR WHEN A 19
300300 COMMUNITY BENEFIT PL AN IS IN EFFECT, A REGULATED FINANCIA L INSTITUTION 20
301301 SHALL SUBMIT TO THE COMMISSIONER AND MAKE AVAILABLE TO THE PUB LIC A 21
302302 REPORT ON COMMUNITY BENEFIT PLAN GOAL AT TAINMENT THAT : 22
303303
304304 1. IDENTIFIES ANY GOALS THE REGULATED FINANCIA L 23
305305 INSTITUTION DID NOT MEET; AND 24
306306
307307 2. INCLUDES VERIFIABLE D ATA. 25
308308
309309 (II) THE COMMISSIONER SHALL RE CEIVE PUBLIC COMMENT S 26
310310 ON THE REPORT DURING A PUBLIC COMMENT PER IOD ESTABLISHED BY T HE 27
311311 COMMISSIONER . 28
312312
313313 (C) (1) A REGULATED FINANCIAL INSTITUTION THAT ISSUES AT LEAST 29
314314 300 BUT FEWER THAN 1,000 SINGLE–FAMILY HOME LOANS EA CH YEAR SHALL : 30
315315 8 HOUSE BILL 1040
316316
317317
318318 (I) INCLUDE IN ITS COMMUN ITY BENEFIT PLAN A R ETAIL 1
319319 LENDING PRODUCT OR C OMMUNITY DEVELOPMENT LOANS, INVESTMENTS , GRANTS, 2
320320 OR SERVICES THAT ARE TARGETED TO : 3
321321
322322 1. AT LEAST ONE UNDERSER VED OR DISTRESSED 4
323323 COUNTY; AND 5
324324
325325 2. LOW– AND MODERATE –INCOME INDIVIDUALS A ND 6
326326 OTHER UNDERSERVED PO PULATIONS IN THAT CO UNTY; AND 7
327327
328328 (II) FOR EACH PLAN YEAR , SUBMIT TO THE COMMISSIONER AND 8
329329 MAKE AVAILABLE TO TH E PUBLIC VERIFIABL E DATA THAT INCLUDES : 9
330330
331331 1. DEMOGRAPHIC INFORMATI ON ON RETAIL LENDING 10
332332 RECIPIENTS AND THE N UMBER OF LOANS MADE TO TARGET POPULATION S; AND 11
333333
334334 2. DATA REGARDING COMMUN ITY DEVELOPMENT 12
335335 LOANS, INVESTMENTS , GRANTS, AND SERVICES. 13
336336
337337 (2) A REGULATED FINANCIAL INSTITUTION THAT ISS UES 1,000 OR 14
338338 MORE SINGLE–FAMILY LOANS EACH YE AR SHALL: 15
339339
340340 (I) INCLUDE IN ITS COMMUN ITY BENEFIT PLAN A R ETAIL 16
341341 LENDING PRODUCT OR C OMMUNITY DEVELOPMENT LOANS, INVESTMENTS , GRANTS, 17
342342 OR SERVICES THAT ARE TARGETED TO : 18
343343
344344 1. AT LEAST TWO UN DERSERVED OR DISTRES SED 19
345345 COUNTIES; 20
346346
347347 2. ONE OR MORE UNDERSERV ED OR DISTRESSED 21
348348 CENSUS TRACTS ; AND 22
349349
350350 3. LOW– AND MODERATE –INCOME INDIVIDUALS A ND 23
351351 OTHER UNDERSERVED PO PULATIONS IN THE COU NTIES AND CENSUS TRA CTS; AND 24
352352
353353 (II) FOR EACH PLAN YEAR , SUBMIT TO THE COMMISSIONER AND 25
354354 MAKE AVAILABLE TO TH E PUBLIC VERIFIABLE DATA THAT INCLUDES : 26
355355
356356 1. DEMOGRAPHIC INFORMATI ON ON RETAIL LENDING 27
357357 RECIPIENTS AND THE N UMBER OF LOANS MADE TO TARGET POPULATION S; AND 28
358358
359359 2. DATA REGARDING COMMUN ITY DEVELOPMENT 29
360360 LOANS, INVESTMENTS , GRANTS, AND SERVICES. 30 HOUSE BILL 1040 9
361361
362362
363363
364364 (D) A BANKING INSTITUTION OR A CREDIT UNION SH ALL DESCRIBE IN A 1
365365 COMMUNITY BENEFIT PL AN, IN CONNECTION WITH T HE ESTABLISHMENT OF A 2
366366 DOMESTIC BRANCH OR B RANCH RELOCATION , HOW THE NEW OR RELOC ATED 3
367367 BRANCH WILL BENEFIT LOW– AND MODERATE –INCOME CENSUS TRACTS OR 4
368368 PREDOMINA NTLY MINORITY TRACTS I N PROXIMITY TO THE B RANCH. 5
369369
370370 (E) (1) A MEMBER OF THE PUBLIC MAY COMMENT AT ANY T IME ON THE 6
371371 COMMUNITY BENEFIT PL AN OF A REGULATED FI NANCIAL INSTITUTION . 7
372372
373373 (2) A REGULATED FINANCIAL INSTITUTION AND THE COMMISSIONER 8
374374 SHALL RETAIN COPIES OF PUBLIC COMMENTS R ECEIVED ON A COMMUNI TY BENEFIT 9
375375 PLAN FOR 3 YEARS. 10
376376
377377 1–505. 11
378378
379379 (A) THE COMMISSIONER SHALL : 12
380380
381381 (1) REVIEW AN INITIAL COM MUNITY BENEFIT PLAN SUBMITTED BY A 13
382382 REGULATED FINANCIAL INSTITUTION TO ASSES S WHETHER THE PLAN I S ADEQUATE 14
383383 IN MEETING COMMUNITY NEEDS; AND 15
384384
385385 (2) MONITOR THE EXTENT TO WHICH A REGULATED FI NANCIAL 16
386386 INSTITUTION HAS ATTA INED THE GOALS OF TH E PLAN DURING EACH Y EAR THAT THE 17
387387 PLAN IS IN EFFECT. 18
388388
389389 (B) IF THE COMMISSIONER DETERMIN ES THAT A COMMUNITY BENEFIT 19
390390 PLAN IS NOT ADEQUATE IN MEETING COMMUNITY NEEDS OR THAT A REGU LATED 20
391391 FINANCIAL INSTITUTIO N HAS SUBSTANTIALLY FAILED TO ATTAIN ANN UAL GOALS 21
392392 UNDER THE PLAN , THE COMMISSIONER SHALL : 22
393393
394394 (1) DENY AN APPLICATION F OR A DEPOSIT FACILIT Y OR LICENS E 23
395395 SUBMITTED BY THE REG ULATED FINANCIAL INS TITUTION; 24
396396
397397 (2) IMPOSE A CIVIL PENALT Y UNDER § 2–117 OF THIS ARTICLE OR 25
398398 INCREASE A FEE APPLI CABLE TO THE REGULAT ED FINANCIAL INSTITU TION UNDER 26
399399 § 5–203, § 6–712, OR § 11–503.1 OF THIS ARTICLE , WITH THE PROCEEDS PA YABLE 27
400400 TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 28
401401 2–118.2 OF THIS ARTICLE; 29
402402
403403 (3) REQUIRE A BRANCH DIVE STITURE FOR THE REGU LATED 30
404404 FINANCIAL INSTITUTIO N; 31
405405 10 HOUSE BILL 1040
406406
407407
408408 (4) PROHIBIT THE REGULATE D FINANCIAL INSTITUT ION FROM 1
409409 SELLING LOANS TO GOV ERNMENT–SPONSORE D ENTERPRISES ; OR 2
410410
411411 (5) (I) REQUIRE AN ADJUSTMENT TO THE COMMUNITY BEN EFIT 3
412412 PLAN OR ADOPTION OF A REMEDIAL ACTION PL AN THAT SPECIFIES CO NCRETE 4
413413 STEPS TO MEET COMMUN ITY NEEDS OR ATTAIN ANNUAL GOALS , SUCH AS 5
414414 INCREASING MARKETING TO UNDERSERVED OR DI STRESSED COMMUNITIES ; AND 6
415415
416416 (II) MAKE AVAILABLE TO THE PUBLIC ANY ADJUSTMEN T OR 7
417417 REMEDIAL ACTION PLAN REQUIRED UNDER ITEM (I) OF THIS ITEM. 8
418418
419419 (C) (1) A BANKING INSTITUTION OR A CREDIT UNION SH ALL HONOR ANY 9
420420 COMMUNITY BENEFIT PL AN ESTABLISHED BY AN ENTITY ACQUIRED BY THE 10
421421 BANKING INSTITUTION OR CREDIT UNION . 11
422422
423423 (2) THE COMMISSIONER SHALL DE NY AN APPLICATION FO R A 12
424424 DEPOSIT FACILITY OF A BANKING INSTITUTIO N OR CREDIT UNION TH AT DOES NOT 13
425425 COMPLY WITH PARAGRAP H (1) OF THIS SUBSECTION . 14
426426
427427 (D) IF A REGULATED FINANC IAL INSTITUTION HAS ENGAGED IN AN UNFAIR, 15
428428 ABUSIVE, OR DECEPTIVE TRADE P RACTICE UNDER § 13–301 OF THE COMMERCIAL 16
429429 LAW ARTICLE OR AN ACT OR A PRACTICE THAT VIOL ATES FAIR LENDING AN D 17
430430 HOUSING LAWS INTENDE D TO ENSURE THE FAIR , EQUITABLE, AND 18
431431 NONDISCRIMINATORY AC CESS TO CREDI T FOR INDIVIDUALS AN D COMMUNITIES 19
432432 THAT ARE ENFORCED BY THE FEDERAL BUREAU OF CONSUMER FINANCIAL 20
433433 PROTECTION OR OTHER F EDERAL OR STATE AGENCIES , THE COMMISSIONER SHALL 21
434434 PENALIZE THE REGULAT ED FINANCIAL INSTITU TION IN A MANNER COM MENSURATE 22
435435 WITH THE EXTENT OF T HE HARM EXPERIENCED BY INDIVIDUALS OR CO MMUNITIES 23
436436 IMPACTED BY THE VIOL ATION. 24
437437
438438 1–506. 25
439439
440440 (A) THE COMMISSIONER SHALL ES TABLISH A COMMUNITY BENEFIT REVIEW 26
441441 COMMITTEE TO REVIEW THE ADEQUACY OF COMM UNITY BENEFIT PLANS ADOPTED 27
442442 BY REGULATED FINANCI AL INSTITUTIONS. 28
443443
444444 (B) THE MEMBERSHIP OF THE COMMUNITY BENEFIT RE VIEW COMMITTEE 29
445445 SHALL CONSIST OF : 30
446446
447447 (1) REPRESENTATIVES OF CO MMUNITY–BASED ORGANIZATIONS ; 31
448448
449449 (2) LEADERS FROM THE FAIT H COMMUNITY ; 32
450450 HOUSE BILL 1040 11
451451
452452
453453 (3) REPRESENTATIVES OF CI VIL RIGHTS ORGANIZAT IONS; 1
454454
455455 (4) ELECTED OR APPOI NTED PUBLIC OFFICIAL S FROM URBAN AND 2
456456 RURAL JURISDICTIONS ; AND 3
457457
458458 (5) OTHER STAKEHOLDERS RE PRESENTING A DIVERSI TY OF 4
459459 INTERESTS AND PERSPE CTIVES RELATING TO A FFORDABLE HOUSING AN D 5
460460 COMMUNITY DEVELOPMEN T. 6
461461
462462 (C) THE COMMUNITY BENEFIT REVIEW COMMITTEE SHA LL MEET AT LEAST 7
463463 TWICE A YEAR TO: 8
464464
465465 (1) ASSESS WHETHER ADOPTE D COMMUNITY BENEFIT PLANS ARE 9
466466 ADEQUATE IN MEETING COMMUNITY NEEDS ; 10
467467
468468 (2) REVIEW THE COMMISSIONER ’S ENFORCEMENT OF THE 11
469469 REQUIREMENTS UNDER T HIS SUBTITLE, INCLUDING APPLICATIO NS FOR A DEPOSIT 12
470470 FACILITY OR LICENSE THAT HAVE BEEN APPROVED AND DE NIED BY THE 13
471471 COMMISSIONER ; AND 14
472472
473473 (3) MAKE RECOMMENDATIONS TO THE COMMISSIONER FOR : 15
474474
475475 (I) IMPROVEMENTS IN THE E FFECTIVENESS OF ENFO RCEMENT 16
476476 AND OF COMMUNITY BEN EFIT PLANS IN INCREA SING LOANS, INVESTMENTS , AND 17
477477 SERVICES TO LOW – AND MODERATE –INCOME COMMUNITIES A ND OTHER 18
478478 UNDERSERVED OR DISTR ESSED COMMUNITIES ; AND 19
479479
480480 (II) THE OPERATION OF THE COMMUNITY REINVESTMENT 20
481481 FUND ESTABLISHED UNDE R § 2–118.2 OF THIS ARTICLE AND THE ACTIVITIES 21
482482 FINANCED BY THE FUND. 22
483483
484484 1–507. 23
485485
486486 (A) A REGULATED FINANCIAL INSTITUTION SHALL PR OVIDE A NOTICE TO 24
487487 THE PUBLIC THAT IS S UBSTANTIALLY SIMILAR TO THE FOLLOWING : 25
488488
489489 “MARYLAND COMMUNITY REINVESTMENT NOTICE 26
490490
491491 THE COMMISSIONER OF FINANCIAL REGULATION IN THE MARYLAND 27
492492 DEPARTMENT OF LABOR REQUIRES THIS I NSTITUTION TO ISSUE A C OMMUNITY 28
493493 BENEFITS PLAN INDICA TING HOW THIS INSTIT UTION WILL SERVE THE NEEDS OF 29
494494 LOW–INCOME TO MODERATE –INCOME COMMUNITIES A ND OTHER UNDERSERVED OR 30
495495 DISTRESSED COMMUNITI ES. THE COMMISSIONER TAKES TH IS PLAN INTO ACCOUNT 31 12 HOUSE BILL 1040
496496
497497
498498 WHEN DECIDING ON CER TAIN APPLICATIONS SU BMITTED FOR APPROVAL BY THE 1
499499 OFFICE OF FINANCIAL REGULATION. YOUR INVOLVEMENT IS E NCOURAGED . YOU 2
500500 MAY OBTAIN A COPY OF OUR PLAN FROM THIS I NSTITUTION OR FROM T HE 3
501501 COMMISSIONER . THE PLAN IS POSTED ON THIS INSTITUTION ’S WEBSITE AND YOU 4
502502 MAY ALSO OBTAIN FROM THIS INSTITUTION A HARD C OPY OF THE PLAN . YOU MAY 5
503503 SUBMIT WRITTEN COMME NTS ABOUT OUR PLAN A ND PERFORMANCE IN ME ETING 6
504504 COMMUNITY FINANCIAL SERVICES NEEDS TO TH E OFFICE OF FINANCIAL 7
505505 REGULATION.”. 8
506506
507507 (B) THE NOTICE REQUIRED B Y SUBSECTION (A) OF THIS SECTION SHALL BE 9
508508 POSTED: 10
509509
510510 (1) IN THE PUBLIC LOBBY O F A REGULATED FINANC IAL INSTITUTION; 11
511511 AND 12
512512
513513 (2) ON THE WEBSITE OF THE REGULATED FINANCIAL INSTITUTION. 13
514514
515515 2–118. 14
516516
517517 (a) In this section, “Fund” means the Banking Institution and Credit Union 15
518518 Regulation Fund established under this section. 16
519519
520520 (b) There is a Banking Institution and Credit Union Regulation Fund that 17
521521 consists of: 18
522522
523523 (1) All revenue received for the chartering and regulation of persons who 19
524524 engage in the business of a banking institution or credit union under this article; and 20
525525
526526 (2) Any other fee, assessment, or revenue received by the Commissioner 21
527527 from banking institutions and credit unions under this article. 22
528528
529529 (c) Notwithstanding subsection (b) of this section, the Commissioner shall [pay]: 23
530530
531531 (1) EXCEPT AS PROVIDED UN DER ITEM (2) OF THIS SUBSECTION , PAY 24
532532 all fines and penalties collected by the Commissioner from banking institutions and credit 25
533533 unions under this article into the General Fund of the State; AND 26
534534
535535 (2) PAY ANY PENALTIES AND FEES ASSESSED UNDER § 1–505 OF THIS 27
536536 ARTICLE INTO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 28
537537 2–118.2 OF THIS SUBTITLE . 29
538538
539539 2–118.2. 30
540540
541541 (A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 31
542542 INDICATED. 32 HOUSE BILL 1040 13
543543
544544
545545
546546 (2) “COMMUNITY DEVELOPMENT ” HAS THE MEANIN G STATED IN § 1
547547 1–501 OF THIS ARTICLE. 2
548548
549549 (3) “FUND” MEANS THE COMMUNITY REINVESTMENT FUND. 3
550550
551551 (B) THERE IS A COMMUNITY REINVESTMENT FUND. 4
552552
553553 (C) THE PURPOSE OF THE FUND IS TO FINANCE CO MMUNITY 5
554554 DEVELOPMENT ACTIVITI ES. 6
555555
556556 (D) THE COMMISSIONER SHALL AD MINISTER THE FUND. 7
557557
558558 (E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
559559 SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
560560
561561 (2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
562562 AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
563563
564564 (F) THE FUND CONSISTS OF : 12
565565
566566 (1) REVENUE DISTRIBUTED T O THE FUND UNDER § 1–505 OF THIS 13
567567 ARTICLE; 14
568568
569569 (2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 15
570570
571571 (3) INTEREST EARNINGS ; AND 16
572572
573573 (4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17
574574 THE BENEFIT OF THE FUND. 18
575575
576576 (G) THE FUND MAY BE USED ONLY FOR COMMUNITY DEVELO PMENT 19
577577 ACTIVITIES. 20
578578
579579 (H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 21
580580 IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 22
581581
582582 (2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 23
583583 THE FUND. 24
584584
585585 (I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 25
586586 WITH THE STATE BUDGET . 26
587587 14 HOUSE BILL 1040
588588
589589
590590 2–120. 1
591591
592592 (a) (1) In this section the following words have the meanings indicated. 2
593593
594594 (2) “Board” means the State Collection Agency Licensing Board established 3
595595 under Title 7 of the Business Regulation Article. 4
596596
597597 (3) “Fund” means the Non–Depository Special Fund established under this 5
598598 section. 6
599599
600600 (b) There is a Non–Depository Special Fund that consists of: 7
601601
602602 (1) All revenues received from licensing fees from each licensed person; 8
603603
604604 (2) All revenues received from registration fees from each registered 9
605605 person; 10
606606
607607 (3) All revenues received from annual assessments under subsection (h) of 11
608608 this section; 12
609609
610610 (4) Income from the investments that the State Treasurer makes for the 13
611611 Fund; and 14
612612
613613 (5) Any other fee, examination or investigation fee or assessment, or 15
614614 revenue received by the Commissioner or the Board with respect to any regulated person. 16
615615
616616 (c) Notwithstanding subsection (b) of this section: 17
617617
618618 (1) [The] EXCEPT AS PROVIDED IN ITEM (3) OF THIS SUBSECTION , 18
619619 THE Commissioner and the Board shall pay all fines and penalties collected from any 19
620620 regulated person into the General Fund of the State; [and] 20
621621
622622 (2) Revenue received by the Commissioner for use of the Foreclosed 21
623623 Property Registry established under Title 7 of the Real Property Article shall be paid by 22
624624 the Commissioner to the Foreclosed Property Registry Fund established under § 7–105.14 23
625625 of the Real Property Article; AND 24
626626
627627 (3) THE COMMISSIONER SHALL PA Y ANY PENAL TIES AND FEES 25
628628 ASSESSED UNDER § 1–505 OF THIS ARTICLE INTO THE COMMUNITY REINVESTMENT 26
629629 FUND ESTABLISHED UNDE R § 2–118.2 OF THIS SUBTITLE . 27
630630
631631 5–203. 28
632632
633633 (b) The Commissioner shall impose annual assessments on each banking 29
634634 institution as provided in this section, to cover the expense of regulating banking 30 HOUSE BILL 1040 15
635635
636636
637637 institutions AND ENFORCE , AS NECESSARY , THE REQUIREMENTS OF TITLE 1, 1
638638 SUBTITLE 5 OF THIS ARTICLE . 2
639639
640640 (e) Notwithstanding subsection (c) of this section[, for]: 3
641641
642642 (1) FOR a banking institution with a composite CAMELS rating of 3, 4, or 4
643643 5 for its most recent examination, the annual assessment imposed under this section shall 5
644644 be increased by an additional 25%; AND 6
645645
646646 (2) THE ANNUAL ASSESSMENT IMPOSED UNDER THIS S ECTION MAY 7
647647 BE INCREASED BY AN AM OUNT DETERMINED BY T HE COMMISSIONER AND PAYA BLE 8
648648 TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 2–118.2 OF THIS 9
649649 ARTICLE TO ENFORCE T HE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 10
650650 ARTICLE. 11
651651
652652 6–712. 12
653653
654654 (c) (1) The Commissioner shall impose an annual assessment on each credit 13
655655 union as provided in this subsection to cover the expense of regulating credit unions AND 14
656656 ENFORCE, AS NECESSARY , THE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 15
657657 ARTICLE. 16
658658
659659 (5) THE COMMISSIONER MAY INCR EASE THE AN NUAL ASSESSMENT 17
660660 BY AN AMOUNT DETERMI NED BY THE COMMISSIONER AND PAYA BLE TO THE 18
661661 COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 2–118.2 OF THIS 19
662662 ARTICLE TO ENFORCE T HE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 20
663663 ARTICLE. 21
664664
665665 11–503.1. 22
666666
667667 (a) The Commissioner shall set by regulation the fees provided for in this subtitle. 23
668668
669669 (b) The fees established by the Commissioner under this section together with 24
670670 any assessments of licensees under this subtitle shall [be]: 25
671671
672672 (1) BE reasonable and set in a manner that will collectively produce funds 26
673673 sufficient to cover the direct and indirect costs of fulfilling the statutory and regulatory 27
674674 duties of the Commissioner related to licensees in accordance with this subtitle; AND 28
675675
676676 (2) PROVIDE FOR AN INCREA SE IN THE AMOUNT ASS ESSED ON A 29
677677 MORTGAGE LENDER , AS NECESSARY , TO ENABLE THE COMMISSIONER TO ENFOR CE 30
678678 THE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS ARTICLE , WITH THE 31
679679 PROCEEDS PAYABLE TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED 32
680680 UNDER § 2–118.2 OF THIS ARTICLE . 33
681681 16 HOUSE BILL 1040
682682
683683
684684 (c) The Commissioner shall publish the fee schedule set by the Commissioner. 1
685685
686686 Article – State Finance and Procurement 2
687687
688688 6–226. 3
689689
690690 (a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 4
691691 through 2028. 5
692692
693693 2. Notwithstanding any other provision of law, and unless 6
694694 inconsistent with a federal law, grant agreement, or other federal requirement or with the 7
695695 terms of a gift or settlement agreement, net interest on all State money allocated by the 8
696696 State Treasurer under this section to special funds or accounts, and otherwise entitled to 9
697697 receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 10
698698 Fund of the State. 11
699699
700700 (ii) The provisions of subparagraph (i) of this paragraph do not apply 12
701701 to the following funds: 13
702702
703703 204. the Victims of Domestic Violence Program Grant Fund; 14
704704 [and] 15
705705
706706 205. the Proposed Programs Collaborative Grant Fund; AND 16
707707
708708 206. THE COMMUNITY REINVESTMENT FUND. 17
709709
710710 SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
711711 October 1, 2025. 19