EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
[Brackets] indicate matter deleted from existing law.
*hb1040*
HOUSE BILL 1040
N1, C9 5lr2652
HB 1035/24 – ENT CF 5lr3563
By: Delegates Rosenberg and Ruff
Introduced and read first time: February 5, 2025
Assigned to: Environment and Transportation
A BILL ENTITLED
AN ACT concerning 1
Real Property – Insufficient Condominium Reserve Account Grant Fund – 2
Establishment 3
FOR the purpose of requiring certain regulated financial institutions to develop a 4
community benefit plan in connection with certain applications to the Commissioner 5
of Financial Regulation relating to financial services; requiring certain regulated 6
financial institutions to submit to the Commissioner and make available to the 7
public a report on community benefit goal attainment under certain circumstances; 8
requiring the Commissioner to exercise certain oversight authority relating to the 9
adequacy of the community benefit plans and attainment of goals under the plans; 10
requiring the Commissioner to establish a certain community benefit review 11
committee; establishing the Community Reinvestment Fund as a special, nonlapsing 12
fund to finance certain community dev elopment activities; requiring the 13
Commissioner to contract with certain persons to conduct a certain disparity study; 14
and generally relating to financial institutions and community development. 15
BY repealing and reenacting, without amendments, 16
Article – Financial Institutions 17
Section 1–101(a), (d), (e), (g), and (i), 2–118(a) and (b), and 2–120(a)(1) through (3) 18
and (b) 19
Annotated Code of Maryland 20
(2020 Replacement Volume and 2024 Supplement) 21
BY adding to 22
Article – Financial Institutions 23
Section 1–501 through 1–507 to be under the new subtitle “Subtitle 5. Community 24
Benefit Plan”; and 2–118.2 and 6–712(c)(5) 25
Annotated Code of Maryland 26
(2020 Replacement Volume and 2024 Supplement) 27
BY repealing and reenacting, with amendments, 28 2 HOUSE BILL 1040
Article – Financial Institutions 1
Section 2–118(c), 2–120(c), 5–203(b) and (e), 6–712(c)(1), and 11–503.1 2
Annotated Code of Maryland 3
(2020 Replacement Volume and 2024 Supplement) 4
BY repealing and reenacting, without amendments, 5
Article – State Finance and Procurement 6
Section 6–226(a)(2)(i) 7
Annotated Code of Maryland 8
(2021 Replacement Volume and 2024 Supplement) 9
BY repealing and reenacting, with amendments, 10
Article – State Finance and Procurement 11
Section 6–226(a)(2)(ii)204. and 205. 12
Annotated Code of Maryland 13
(2021 Replacement Volume and 2024 Supplement) 14
BY adding to 15
Article – State Finance and Procurement 16
Section 6–226(a)(2)(ii)206. 17
Annotated Code of Maryland 18
(2021 Replacement Volume and 2024 Supplement) 19
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21
Article – Financial Institutions 22
1–101. 23
(a) In this article, unless the context clearly requires otherwise, the following 24
words have the meanings indicated. 25
(d) “Banking institution” means an institution that is incorporated under the 26
laws of this State as a State bank, trust company, or savings bank. 27
(e) “Charter” has the meaning stated in § 1–101 of the Corporations and 28
Associations Article. 29
(g) “Commissioner” means the Commissioner of Financial Regulation in the 30
Maryland Department of Labor. 31
(i) “Credit union” means a credit union that is incorporated under the laws of this 32
State as a credit union. 33
SUBTITLE 5. COMMUNITY BENEFIT PLAN. 34
HOUSE BILL 1040 3
1–501. 1
(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 2
INDICATED. 3
(B) “APPLICATION FOR A DEP OSIT FACILITY OR LIC ENSE” MEANS AN 4
APPLICATION TO THE COMMISSIONER FOR : 5
(1) A CHARTER FOR A BANKIN G INSTITUTION OR A C REDIT UNION; 6
(2) THE ESTABLISHMENT OF A DOMESTIC BRANCH OR OTHER 7
FACILITY WITH THE ABILITY TO A CCEPT DEPOSITS FOR A REGULATED FINANCIAL 8
INSTITUTION; 9
(3) THE RELOCATION OF THE HOME OFFICE OR A BRA NCH OFFICE OF 10
A REGULATED FINANCIA L INSTITUTION; 11
(4) THE MERGER OR CONSOLI DATION WITH, OR THE ACQUISITION O F 12
THE ASSETS, OR THE ASSUMPTION OF THE LIAB ILITIES OF A REGULAT ED FINANCIAL 13
INSTITUTION; 14
(5) THE ACQUISITION OF SH ARES IN, OR THE ASSETS OF , A 15
REGULATED FINANCIAL INSTITUTION REQUIRIN G APPROVAL UNDER STATE LAW; OR 16
(6) AN INITIAL LICENSE OR RENEWAL LICENSE TO M AKE LOANS OR 17
TO OFFER OTHER FINAN CIAL SERVICES. 18
(C) “COMMUNITY BENEFIT PLA N” MEANS A PLAN CREATED BY A 19
REGULATED FINANCIAL INSTITUTION THAT : 20
(1) PROVIDES MEASURABLE A ND VERIFIABLE GOALS FOR FUTURE 21
AMOUNTS OF SAFE AND SOUND LOANS , INVESTMENTS , GRANTS, SERVICES, AND 22
OTHER FINANCIAL PROD UCTS FOR LOW– AND MODERATE –INCOME INDIVIDUALS 23
AND COMMUNITIES AND OTHER DISTRESSED OR UNDERSERVED INDIVIDU ALS AND 24
COMMUNITIES ; 25
(2) HAS GOALS THAT ARE DE VELOPED IN REFERENCE TO PAST 26
LEVELS OF LENDING , INVESTMENTS , GRANTS, AND SERVICES; 27
(3) INCLUDES COMPARISONS TO DEMOGRAPHIC BENCH MARKS AND 28
PEER OR INDUSTRY LEV ELS OF ACTIVITIES; AND 29
4 HOUSE BILL 1040
(4) INCLUDES DOCUMENTATIO N OF INPUT FROM COMM UNITY–BASED 1
ORGANIZATIONS AND OT HER STAKEHOLDERS . 2
(D) “COMMUNITY DEVELOPMENT ” INCLUDES: 3
(1) AFFORDABLE HOUSING FO R LOW– OR MODERATE –INCOME 4
INDIVIDUALS; 5
(2) AVOIDANCE OF PATTERNS OF LENDING RESULTING IN THE LOSS 6
OF AFFORDABLE HOUSIN G UNITS; 7
(3) COMMUNITY DEVELOPMENT SERVICES, INCLUDING COUNSELING 8
AND SUCCESSFUL MORTG AGE OR LOAN MODIFICA TIONS OF DELINQUENT LOANS ; 9
(4) ACTIVITIES THAT PROMO TE: 10
(I) INTEGRATION ; 11
(II) CLIMATE REMEDIATION A ND DISASTER PREPARED NESS; 12
(III) ECONOMIC DEVELOPMENT BY FINANCING SMALL 13
BUSINESSES OR FARMS THAT MEET THE SIZE E LIGIBILITY REQUIREME NTS OF THE 14
DEVELOPMENT COMPANY OR SMALL BUSINESS IN VESTMENT COMPANY PRO GRAMS 15
UNDER 13 C.F.R. § 121.301, OR ANY SUCCESSOR REG ULATION, WITH AN EMPHASIS 16
ON SMALL BUSINESSES THAT HAVE GROSS ANNU AL REVENUES OF NOT M ORE THAN 17
$1,000,000; OR 18
(IV) PHYSICAL AND SENSORY ACCESSIBILITY IN HOUSIN G 19
STOCK THAT IS INTEGR ATED INTO THE COMMUN ITY; 20
(5) ACTIVITIES THAT REVIT ALIZE OR STABILIZE : 21
(I) LOW– OR MODERATE –INCOME GEOGRAPHIC AR EAS; 22
(II) DESIGNATED DISASTER A REAS; 23
(III) OTHER DISTRESSED OR U NDERSERVED COMMUNITI ES; OR 24
(IV) DISTRESSED OR UNDERSE RVED NONMETROPOLITAN 25
MIDDLE–INCOME GEOGRAPHIC AR EAS OR OTHER GEOGRAP HIC AREAS DESIGNATED 26
BY THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL; AND 27
HOUSE BILL 1040 5
(6) OTHER ACTIVITIES THAT PROMOTE THE OBJECTIV ES OF THIS 1
SUBTITLE, AS DETERMINED BY THE REGULATIONS IMPLEMEN TING THE FEDERAL 2
COMMUNITY REINVESTMENT ACT OR BY THE COMMISSIONER . 3
(E) “OTHER DISTRESSED OR U NDERSERVED COMMUNITY ” MEANS A 4
COUNTY, CENSUS TRACT , OR OTHER AREA THAT , ACCORDING TO A PERIO DIC 5
REVIEW AND DATA ANAL YSIS BY THE COMMISSIONER OR THE A PPROPRIATE 6
FEDERAL FINANCIAL SU PERVISORY AGENCIES O N AN INTERAGENCY BAS IS 7
THROUGH THE FEDERAL FINANCIAL INSTITUTIONS EXAMINATION COUNCIL, IS 8
EXPERIENCING ECONOMI C HARDSHIP OR IS UND ERSERVED BY FINANCIA L 9
INSTITUTIONS, INCLUDING BY HAVING A LOW LEVE L OF LOANS PER HOUSE HOLD OR 10
PER SMALL BUSINESS . 11
(F) “OTHER UNDERSERVED POP ULATIONS” MEANS A POPULATION T HAT 12
EXPERIENCES ONGOING EFFECTS OF DISCRIMIN ATION OR IS RELATIVE LY 13
UNDERSERVED BY FINAN CIAL INSTITUTIONS AS MEASURED BY LOANS PE R CAPITA 14
OR OTHER SIMILAR MET RICS. 15
(G) “REGULATED FINANCIAL I NSTITUTION” MEANS: 16
(1) A BANKING INSTITUTION AS DEFINED IN § 1–101 OF THIS TITLE; 17
(2) A CREDIT UNION AS DEFI NED IN § 1–101 OF THIS TITLE; OR 18
(3) A NONDEPOSITORY MORTGA GE COMPANY . 19
1–502. 20
(A) THE GENERAL ASSEMBLY FINDS THAT : 21
(1) A REGULATED FINANCIAL INSTITUTION IS REQUI RED BY LAW TO 22
DEMONSTRATE THAT IT SERVES THE CONVENIEN CE AND NEEDS OF THE 23
COMMUNITIES WHERE TH E REGULATED FINANCIA L INSTITUTION IS CHA RTERED TO 24
DO BUSINESS; 25
(2) THE CONVENIENCE AND NEED S OF COMMUNITIES INC LUDE THE 26
NEED FOR CREDIT , DEPOSIT SERVICES , AND OTHER FINANCIAL PRODUCTS; 27
(3) A REGULATED FINANCIAL INSTITUTION HAS A CO NTINUING AND 28
AFFIRMATIVE OBLIGATI ON TO SERVE COMMUNIT Y NEEDS; AND 29
6 HOUSE BILL 1040
(4) A REGULATED FINANCI AL INSTITUTION MUST DEMONSTRATE 1
RESPONSIVENESS TO CO MMUNITY NEEDS BY DEV ELOPING A COMMUNITY BENEFITS 2
PLAN WHEN SUBMITTING AN APPLICATION FOR A DEPOSIT FACILITY OR LICENSE. 3
(B) THE PURPOSE OF THIS S UBTITLE IS TO REQUIR E THE COMMISSIONER 4
TO ENCOURAGE REGUL ATED FINANCIAL INSTI TUTIONS TO MEET THE FINANCIAL 5
NEEDS OF THE LOCAL C OMMUNITIES WHERE THE REGULATED FINANCIAL 6
INSTITUTIONS ARE CHA RTERED CONSISTENT WI TH THE SAFE AND SOUN D 7
OPERATION OF THE REG ULATED FINANCIAL INS TITUTIONS. 8
1–503. 9
(A) THE COMMISSIONER S HALL CONTRACT WITH Q UALIFIED PERSONS TO 10
CONDUCT A DISPARITY STUDY TO IDENTIFY UN DERSERVED COUNTIES , 11
POPULATIONS , AND CENSUS TRACTS IN THE STATE. 12
(B) THE DISPARITY STUDY S HALL IDENTIFY SEGMEN TS OF THE 13
POPULATION THAT ARE UNDERSERVED DUE TO D ISCRIMINATION BY 14
METROPOLITAN AREA AN D BY URBAN AND RURAL COUNTIES. 15
(C) THE DISPARITY STUDY S HALL BE: 16
(1) COMPLETED ON OR BEFOR E DECEMBER 1, 2025; 17
(2) UPDATED ONCE EVERY 3 YEARS THEREAFTER ; AND 18
(3) MADE AVAILABLE TO THE PUBLIC. 19
1–504. 20
(A) THIS SECTION DOES NOT APPLY TO A NONDEPOSI TORY MORTGAGE 21
COMPANY THAT ISSUES FEWER THAN 50 SINGLE–FAMILY HOME LOANS ON AN 22
ANNUAL BASIS. 23
(B) (1) A REGULATED FINANCIAL INSTITUTION SHALL DE VELOP A 24
COMMUNITY BENEFIT PL AN IN CONNECTION WIT H AN APPLICATION FOR A DEPOSIT 25
FACILITY OR LICENSE . 26
(2) A COMMUNITY BENEFIT PL AN SHALL: 27
(I) HAVE A DURATION OF 3 YEARS; AND 28
HOUSE BILL 1040 7
(II) INCLUDE GOALS ESTABLI SHED FOR EACH YEAR F OR RETAIL 1
LENDING AND COMMUNIT Y DEVELOPMENT LENDIN G, INVESTMENT, 2
GRANTMAKING , AND SERVICES. 3
(3) ON THE EXPIRATION OF A COMMUNITY BENEFIT PLAN, A 4
REGULATED FINANCIAL INSTITUTION SHALL AD OPT A NEW COMMUNITY BENEFIT 5
PLAN. 6
(4) (I) BEFORE ADOPTING A COM MUNITY BENEFIT PLAN , A 7
REGULATED FINANCIAL INSTITUTION SHALL SU BMIT A DRAFT OF THE PLAN TO THE 8
COMMISSIONER. 9
(II) THE COMMISSIONER SHALL ES TABLISH A PUBLIC 10
COMMENT PERIOD OF NO T LESS THAN 60 DAYS DURING WHICH ME MBERS OF THE 11
PUBLIC MAY PROVIDE C OMMENTS ON THE DRAFT COMMUNITY BENEFIT PL AN. 12
(III) A REGULATED FINANCIAL INSTITUTION SHALL RE VISE THE 13
DRAFT COMMUNITY BENE FIT PLAN IN RESPONSE TO PUBLIC COMMENTS O N THE 14
PLAN. 15
(IV) THE COMMISSIONER MAY REQU IRE A REGULATED 16
FINANCIAL INSTITUTIO N TO REVISE A DRAFT COMMUNITY BENEFIT PL AN IN 17
RESPONSE TO PUBLIC C OMMENTS ON THE PLAN . 18
(5) (I) WHEN RENEWING A LICENSE DURING A Y EAR WHEN A 19
COMMUNITY BENEFIT PL AN IS IN EFFECT, A REGULATED FINANCIA L INSTITUTION 20
SHALL SUBMIT TO THE COMMISSIONER AND MAKE AVAILABLE TO THE PUB LIC A 21
REPORT ON COMMUNITY BENEFIT PLAN GOAL AT TAINMENT THAT : 22
1. IDENTIFIES ANY GOALS THE REGULATED FINANCIA L 23
INSTITUTION DID NOT MEET; AND 24
2. INCLUDES VERIFIABLE D ATA. 25
(II) THE COMMISSIONER SHALL RE CEIVE PUBLIC COMMENT S 26
ON THE REPORT DURING A PUBLIC COMMENT PER IOD ESTABLISHED BY T HE 27
COMMISSIONER . 28
(C) (1) A REGULATED FINANCIAL INSTITUTION THAT ISSUES AT LEAST 29
300 BUT FEWER THAN 1,000 SINGLE–FAMILY HOME LOANS EA CH YEAR SHALL : 30
8 HOUSE BILL 1040
(I) INCLUDE IN ITS COMMUN ITY BENEFIT PLAN A R ETAIL 1
LENDING PRODUCT OR C OMMUNITY DEVELOPMENT LOANS, INVESTMENTS , GRANTS, 2
OR SERVICES THAT ARE TARGETED TO : 3
1. AT LEAST ONE UNDERSER VED OR DISTRESSED 4
COUNTY; AND 5
2. LOW– AND MODERATE –INCOME INDIVIDUALS A ND 6
OTHER UNDERSERVED PO PULATIONS IN THAT CO UNTY; AND 7
(II) FOR EACH PLAN YEAR , SUBMIT TO THE COMMISSIONER AND 8
MAKE AVAILABLE TO TH E PUBLIC VERIFIABL E DATA THAT INCLUDES : 9
1. DEMOGRAPHIC INFORMATI ON ON RETAIL LENDING 10
RECIPIENTS AND THE N UMBER OF LOANS MADE TO TARGET POPULATION S; AND 11
2. DATA REGARDING COMMUN ITY DEVELOPMENT 12
LOANS, INVESTMENTS , GRANTS, AND SERVICES. 13
(2) A REGULATED FINANCIAL INSTITUTION THAT ISS UES 1,000 OR 14
MORE SINGLE–FAMILY LOANS EACH YE AR SHALL: 15
(I) INCLUDE IN ITS COMMUN ITY BENEFIT PLAN A R ETAIL 16
LENDING PRODUCT OR C OMMUNITY DEVELOPMENT LOANS, INVESTMENTS , GRANTS, 17
OR SERVICES THAT ARE TARGETED TO : 18
1. AT LEAST TWO UN DERSERVED OR DISTRES SED 19
COUNTIES; 20
2. ONE OR MORE UNDERSERV ED OR DISTRESSED 21
CENSUS TRACTS ; AND 22
3. LOW– AND MODERATE –INCOME INDIVIDUALS A ND 23
OTHER UNDERSERVED PO PULATIONS IN THE COU NTIES AND CENSUS TRA CTS; AND 24
(II) FOR EACH PLAN YEAR , SUBMIT TO THE COMMISSIONER AND 25
MAKE AVAILABLE TO TH E PUBLIC VERIFIABLE DATA THAT INCLUDES : 26
1. DEMOGRAPHIC INFORMATI ON ON RETAIL LENDING 27
RECIPIENTS AND THE N UMBER OF LOANS MADE TO TARGET POPULATION S; AND 28
2. DATA REGARDING COMMUN ITY DEVELOPMENT 29
LOANS, INVESTMENTS , GRANTS, AND SERVICES. 30 HOUSE BILL 1040 9
(D) A BANKING INSTITUTION OR A CREDIT UNION SH ALL DESCRIBE IN A 1
COMMUNITY BENEFIT PL AN, IN CONNECTION WITH T HE ESTABLISHMENT OF A 2
DOMESTIC BRANCH OR B RANCH RELOCATION , HOW THE NEW OR RELOC ATED 3
BRANCH WILL BENEFIT LOW– AND MODERATE –INCOME CENSUS TRACTS OR 4
PREDOMINA NTLY MINORITY TRACTS I N PROXIMITY TO THE B RANCH. 5
(E) (1) A MEMBER OF THE PUBLIC MAY COMMENT AT ANY T IME ON THE 6
COMMUNITY BENEFIT PL AN OF A REGULATED FI NANCIAL INSTITUTION . 7
(2) A REGULATED FINANCIAL INSTITUTION AND THE COMMISSIONER 8
SHALL RETAIN COPIES OF PUBLIC COMMENTS R ECEIVED ON A COMMUNI TY BENEFIT 9
PLAN FOR 3 YEARS. 10
1–505. 11
(A) THE COMMISSIONER SHALL : 12
(1) REVIEW AN INITIAL COM MUNITY BENEFIT PLAN SUBMITTED BY A 13
REGULATED FINANCIAL INSTITUTION TO ASSES S WHETHER THE PLAN I S ADEQUATE 14
IN MEETING COMMUNITY NEEDS; AND 15
(2) MONITOR THE EXTENT TO WHICH A REGULATED FI NANCIAL 16
INSTITUTION HAS ATTA INED THE GOALS OF TH E PLAN DURING EACH Y EAR THAT THE 17
PLAN IS IN EFFECT. 18
(B) IF THE COMMISSIONER DETERMIN ES THAT A COMMUNITY BENEFIT 19
PLAN IS NOT ADEQUATE IN MEETING COMMUNITY NEEDS OR THAT A REGU LATED 20
FINANCIAL INSTITUTIO N HAS SUBSTANTIALLY FAILED TO ATTAIN ANN UAL GOALS 21
UNDER THE PLAN , THE COMMISSIONER SHALL : 22
(1) DENY AN APPLICATION F OR A DEPOSIT FACILIT Y OR LICENS E 23
SUBMITTED BY THE REG ULATED FINANCIAL INS TITUTION; 24
(2) IMPOSE A CIVIL PENALT Y UNDER § 2–117 OF THIS ARTICLE OR 25
INCREASE A FEE APPLI CABLE TO THE REGULAT ED FINANCIAL INSTITU TION UNDER 26
§ 5–203, § 6–712, OR § 11–503.1 OF THIS ARTICLE , WITH THE PROCEEDS PA YABLE 27
TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 28
2–118.2 OF THIS ARTICLE; 29
(3) REQUIRE A BRANCH DIVE STITURE FOR THE REGU LATED 30
FINANCIAL INSTITUTIO N; 31
10 HOUSE BILL 1040
(4) PROHIBIT THE REGULATE D FINANCIAL INSTITUT ION FROM 1
SELLING LOANS TO GOV ERNMENT–SPONSORE D ENTERPRISES ; OR 2
(5) (I) REQUIRE AN ADJUSTMENT TO THE COMMUNITY BEN EFIT 3
PLAN OR ADOPTION OF A REMEDIAL ACTION PL AN THAT SPECIFIES CO NCRETE 4
STEPS TO MEET COMMUN ITY NEEDS OR ATTAIN ANNUAL GOALS , SUCH AS 5
INCREASING MARKETING TO UNDERSERVED OR DI STRESSED COMMUNITIES ; AND 6
(II) MAKE AVAILABLE TO THE PUBLIC ANY ADJUSTMEN T OR 7
REMEDIAL ACTION PLAN REQUIRED UNDER ITEM (I) OF THIS ITEM. 8
(C) (1) A BANKING INSTITUTION OR A CREDIT UNION SH ALL HONOR ANY 9
COMMUNITY BENEFIT PL AN ESTABLISHED BY AN ENTITY ACQUIRED BY THE 10
BANKING INSTITUTION OR CREDIT UNION . 11
(2) THE COMMISSIONER SHALL DE NY AN APPLICATION FO R A 12
DEPOSIT FACILITY OF A BANKING INSTITUTIO N OR CREDIT UNION TH AT DOES NOT 13
COMPLY WITH PARAGRAP H (1) OF THIS SUBSECTION . 14
(D) IF A REGULATED FINANC IAL INSTITUTION HAS ENGAGED IN AN UNFAIR, 15
ABUSIVE, OR DECEPTIVE TRADE P RACTICE UNDER § 13–301 OF THE COMMERCIAL 16
LAW ARTICLE OR AN ACT OR A PRACTICE THAT VIOL ATES FAIR LENDING AN D 17
HOUSING LAWS INTENDE D TO ENSURE THE FAIR , EQUITABLE, AND 18
NONDISCRIMINATORY AC CESS TO CREDI T FOR INDIVIDUALS AN D COMMUNITIES 19
THAT ARE ENFORCED BY THE FEDERAL BUREAU OF CONSUMER FINANCIAL 20
PROTECTION OR OTHER F EDERAL OR STATE AGENCIES , THE COMMISSIONER SHALL 21
PENALIZE THE REGULAT ED FINANCIAL INSTITU TION IN A MANNER COM MENSURATE 22
WITH THE EXTENT OF T HE HARM EXPERIENCED BY INDIVIDUALS OR CO MMUNITIES 23
IMPACTED BY THE VIOL ATION. 24
1–506. 25
(A) THE COMMISSIONER SHALL ES TABLISH A COMMUNITY BENEFIT REVIEW 26
COMMITTEE TO REVIEW THE ADEQUACY OF COMM UNITY BENEFIT PLANS ADOPTED 27
BY REGULATED FINANCI AL INSTITUTIONS. 28
(B) THE MEMBERSHIP OF THE COMMUNITY BENEFIT RE VIEW COMMITTEE 29
SHALL CONSIST OF : 30
(1) REPRESENTATIVES OF CO MMUNITY–BASED ORGANIZATIONS ; 31
(2) LEADERS FROM THE FAIT H COMMUNITY ; 32
HOUSE BILL 1040 11
(3) REPRESENTATIVES OF CI VIL RIGHTS ORGANIZAT IONS; 1
(4) ELECTED OR APPOI NTED PUBLIC OFFICIAL S FROM URBAN AND 2
RURAL JURISDICTIONS ; AND 3
(5) OTHER STAKEHOLDERS RE PRESENTING A DIVERSI TY OF 4
INTERESTS AND PERSPE CTIVES RELATING TO A FFORDABLE HOUSING AN D 5
COMMUNITY DEVELOPMEN T. 6
(C) THE COMMUNITY BENEFIT REVIEW COMMITTEE SHA LL MEET AT LEAST 7
TWICE A YEAR TO: 8
(1) ASSESS WHETHER ADOPTE D COMMUNITY BENEFIT PLANS ARE 9
ADEQUATE IN MEETING COMMUNITY NEEDS ; 10
(2) REVIEW THE COMMISSIONER ’S ENFORCEMENT OF THE 11
REQUIREMENTS UNDER T HIS SUBTITLE, INCLUDING APPLICATIO NS FOR A DEPOSIT 12
FACILITY OR LICENSE THAT HAVE BEEN APPROVED AND DE NIED BY THE 13
COMMISSIONER ; AND 14
(3) MAKE RECOMMENDATIONS TO THE COMMISSIONER FOR : 15
(I) IMPROVEMENTS IN THE E FFECTIVENESS OF ENFO RCEMENT 16
AND OF COMMUNITY BEN EFIT PLANS IN INCREA SING LOANS, INVESTMENTS , AND 17
SERVICES TO LOW – AND MODERATE –INCOME COMMUNITIES A ND OTHER 18
UNDERSERVED OR DISTR ESSED COMMUNITIES ; AND 19
(II) THE OPERATION OF THE COMMUNITY REINVESTMENT 20
FUND ESTABLISHED UNDE R § 2–118.2 OF THIS ARTICLE AND THE ACTIVITIES 21
FINANCED BY THE FUND. 22
1–507. 23
(A) A REGULATED FINANCIAL INSTITUTION SHALL PR OVIDE A NOTICE TO 24
THE PUBLIC THAT IS S UBSTANTIALLY SIMILAR TO THE FOLLOWING : 25
“MARYLAND COMMUNITY REINVESTMENT NOTICE 26
THE COMMISSIONER OF FINANCIAL REGULATION IN THE MARYLAND 27
DEPARTMENT OF LABOR REQUIRES THIS I NSTITUTION TO ISSUE A C OMMUNITY 28
BENEFITS PLAN INDICA TING HOW THIS INSTIT UTION WILL SERVE THE NEEDS OF 29
LOW–INCOME TO MODERATE –INCOME COMMUNITIES A ND OTHER UNDERSERVED OR 30
DISTRESSED COMMUNITI ES. THE COMMISSIONER TAKES TH IS PLAN INTO ACCOUNT 31 12 HOUSE BILL 1040
WHEN DECIDING ON CER TAIN APPLICATIONS SU BMITTED FOR APPROVAL BY THE 1
OFFICE OF FINANCIAL REGULATION. YOUR INVOLVEMENT IS E NCOURAGED . YOU 2
MAY OBTAIN A COPY OF OUR PLAN FROM THIS I NSTITUTION OR FROM T HE 3
COMMISSIONER . THE PLAN IS POSTED ON THIS INSTITUTION ’S WEBSITE AND YOU 4
MAY ALSO OBTAIN FROM THIS INSTITUTION A HARD C OPY OF THE PLAN . YOU MAY 5
SUBMIT WRITTEN COMME NTS ABOUT OUR PLAN A ND PERFORMANCE IN ME ETING 6
COMMUNITY FINANCIAL SERVICES NEEDS TO TH E OFFICE OF FINANCIAL 7
REGULATION.”. 8
(B) THE NOTICE REQUIRED B Y SUBSECTION (A) OF THIS SECTION SHALL BE 9
POSTED: 10
(1) IN THE PUBLIC LOBBY O F A REGULATED FINANC IAL INSTITUTION; 11
AND 12
(2) ON THE WEBSITE OF THE REGULATED FINANCIAL INSTITUTION. 13
2–118. 14
(a) In this section, “Fund” means the Banking Institution and Credit Union 15
Regulation Fund established under this section. 16
(b) There is a Banking Institution and Credit Union Regulation Fund that 17
consists of: 18
(1) All revenue received for the chartering and regulation of persons who 19
engage in the business of a banking institution or credit union under this article; and 20
(2) Any other fee, assessment, or revenue received by the Commissioner 21
from banking institutions and credit unions under this article. 22
(c) Notwithstanding subsection (b) of this section, the Commissioner shall [pay]: 23
(1) EXCEPT AS PROVIDED UN DER ITEM (2) OF THIS SUBSECTION , PAY 24
all fines and penalties collected by the Commissioner from banking institutions and credit 25
unions under this article into the General Fund of the State; AND 26
(2) PAY ANY PENALTIES AND FEES ASSESSED UNDER § 1–505 OF THIS 27
ARTICLE INTO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 28
2–118.2 OF THIS SUBTITLE . 29
2–118.2. 30
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS 31
INDICATED. 32 HOUSE BILL 1040 13
(2) “COMMUNITY DEVELOPMENT ” HAS THE MEANIN G STATED IN § 1
1–501 OF THIS ARTICLE. 2
(3) “FUND” MEANS THE COMMUNITY REINVESTMENT FUND. 3
(B) THERE IS A COMMUNITY REINVESTMENT FUND. 4
(C) THE PURPOSE OF THE FUND IS TO FINANCE CO MMUNITY 5
DEVELOPMENT ACTIVITI ES. 6
(D) THE COMMISSIONER SHALL AD MINISTER THE FUND. 7
(E) (1) THE FUND IS A SPECIAL , NONLAPSING FUND THAT IS NOT 8
SUBJECT TO § 7–302 OF THE STATE FINANCE AND PROCUREMENT ARTICLE. 9
(2) THE STATE TREASURER SHALL HOLD THE FUND SEPARATELY , 10
AND THE COMPTROLLER SHALL ACC OUNT FOR THE FUND. 11
(F) THE FUND CONSISTS OF : 12
(1) REVENUE DISTRIBUTED T O THE FUND UNDER § 1–505 OF THIS 13
ARTICLE; 14
(2) MONEY APPROPRIATED IN THE STATE BUDGET TO THE FUND; 15
(3) INTEREST EARNINGS ; AND 16
(4) ANY OTHER MONEY FROM ANY OTHER SOURCE ACC EPTED FOR 17
THE BENEFIT OF THE FUND. 18
(G) THE FUND MAY BE USED ONLY FOR COMMUNITY DEVELO PMENT 19
ACTIVITIES. 20
(H) (1) THE STATE TREASURER SHALL INVES T THE MONEY OF THE FUND 21
IN THE SAME MANNER A S OTHER STATE MONEY MAY BE IN VESTED. 22
(2) ANY INTEREST EARNINGS OF THE FUND SHALL BE CREDITE D TO 23
THE FUND. 24
(I) EXPENDITURES FROM THE FUND MAY BE MADE ONLY IN ACCORDANCE 25
WITH THE STATE BUDGET . 26
14 HOUSE BILL 1040
2–120. 1
(a) (1) In this section the following words have the meanings indicated. 2
(2) “Board” means the State Collection Agency Licensing Board established 3
under Title 7 of the Business Regulation Article. 4
(3) “Fund” means the Non–Depository Special Fund established under this 5
section. 6
(b) There is a Non–Depository Special Fund that consists of: 7
(1) All revenues received from licensing fees from each licensed person; 8
(2) All revenues received from registration fees from each registered 9
person; 10
(3) All revenues received from annual assessments under subsection (h) of 11
this section; 12
(4) Income from the investments that the State Treasurer makes for the 13
Fund; and 14
(5) Any other fee, examination or investigation fee or assessment, or 15
revenue received by the Commissioner or the Board with respect to any regulated person. 16
(c) Notwithstanding subsection (b) of this section: 17
(1) [The] EXCEPT AS PROVIDED IN ITEM (3) OF THIS SUBSECTION , 18
THE Commissioner and the Board shall pay all fines and penalties collected from any 19
regulated person into the General Fund of the State; [and] 20
(2) Revenue received by the Commissioner for use of the Foreclosed 21
Property Registry established under Title 7 of the Real Property Article shall be paid by 22
the Commissioner to the Foreclosed Property Registry Fund established under § 7–105.14 23
of the Real Property Article; AND 24
(3) THE COMMISSIONER SHALL PA Y ANY PENAL TIES AND FEES 25
ASSESSED UNDER § 1–505 OF THIS ARTICLE INTO THE COMMUNITY REINVESTMENT 26
FUND ESTABLISHED UNDE R § 2–118.2 OF THIS SUBTITLE . 27
5–203. 28
(b) The Commissioner shall impose annual assessments on each banking 29
institution as provided in this section, to cover the expense of regulating banking 30 HOUSE BILL 1040 15
institutions AND ENFORCE , AS NECESSARY , THE REQUIREMENTS OF TITLE 1, 1
SUBTITLE 5 OF THIS ARTICLE . 2
(e) Notwithstanding subsection (c) of this section[, for]: 3
(1) FOR a banking institution with a composite CAMELS rating of 3, 4, or 4
5 for its most recent examination, the annual assessment imposed under this section shall 5
be increased by an additional 25%; AND 6
(2) THE ANNUAL ASSESSMENT IMPOSED UNDER THIS S ECTION MAY 7
BE INCREASED BY AN AM OUNT DETERMINED BY T HE COMMISSIONER AND PAYA BLE 8
TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 2–118.2 OF THIS 9
ARTICLE TO ENFORCE T HE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 10
ARTICLE. 11
6–712. 12
(c) (1) The Commissioner shall impose an annual assessment on each credit 13
union as provided in this subsection to cover the expense of regulating credit unions AND 14
ENFORCE, AS NECESSARY , THE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 15
ARTICLE. 16
(5) THE COMMISSIONER MAY INCR EASE THE AN NUAL ASSESSMENT 17
BY AN AMOUNT DETERMI NED BY THE COMMISSIONER AND PAYA BLE TO THE 18
COMMUNITY REINVESTMENT FUND ESTABLISHED UNDE R § 2–118.2 OF THIS 19
ARTICLE TO ENFORCE T HE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS 20
ARTICLE. 21
11–503.1. 22
(a) The Commissioner shall set by regulation the fees provided for in this subtitle. 23
(b) The fees established by the Commissioner under this section together with 24
any assessments of licensees under this subtitle shall [be]: 25
(1) BE reasonable and set in a manner that will collectively produce funds 26
sufficient to cover the direct and indirect costs of fulfilling the statutory and regulatory 27
duties of the Commissioner related to licensees in accordance with this subtitle; AND 28
(2) PROVIDE FOR AN INCREA SE IN THE AMOUNT ASS ESSED ON A 29
MORTGAGE LENDER , AS NECESSARY , TO ENABLE THE COMMISSIONER TO ENFOR CE 30
THE REQUIREMENTS OF TITLE 1, SUBTITLE 5 OF THIS ARTICLE , WITH THE 31
PROCEEDS PAYABLE TO THE COMMUNITY REINVESTMENT FUND ESTABLISHED 32
UNDER § 2–118.2 OF THIS ARTICLE . 33
16 HOUSE BILL 1040
(c) The Commissioner shall publish the fee schedule set by the Commissioner. 1
Article – State Finance and Procurement 2
6–226. 3
(a) (2) (i) 1. This subparagraph does not apply in fiscal years 2024 4
through 2028. 5
2. Notwithstanding any other provision of law, and unless 6
inconsistent with a federal law, grant agreement, or other federal requirement or with the 7
terms of a gift or settlement agreement, net interest on all State money allocated by the 8
State Treasurer under this section to special funds or accounts, and otherwise entitled to 9
receive interest earnings, as accounted for by the Comptroller, shall accrue to the General 10
Fund of the State. 11
(ii) The provisions of subparagraph (i) of this paragraph do not apply 12
to the following funds: 13
204. the Victims of Domestic Violence Program Grant Fund; 14
[and] 15
205. the Proposed Programs Collaborative Grant Fund; AND 16
206. THE COMMUNITY REINVESTMENT FUND. 17
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 18
October 1, 2025. 19