Pennsylvania SB 119: An Act amending Title 7 (Banks and Banking) of the Pennsylvania Consolidated Statutes, providing for community reinvestment, for community reinvestment by banks and for community reinvestment by nonbank entities.

Bill Text

PRINTER'S NO. 70
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 119
Session of
2025
INTRODUCED BY HUGHES, STREET, KEARNEY, COSTA, TARTAGLIONE AND
KANE, JANUARY 22, 2025
REFERRED TO BANKING AND INSURANCE, JANUARY 22, 2025
AN ACT
Amending Title 7 (Banks and Banking) of the Pennsylvania
Consolidated Statutes, providing for community reinvestment,
for community reinvestment by banks and for community
reinvestment by nonbank entities.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Title 7 of the Pennsylvania Consolidated Statutes
is amended by adding a part to read:
PART III
COMMUNITY REINVESTMENT
Chapter
71. Community Reinvestment by Banks
72. Community Reinvestment by Nonbank Entities
CHAPTER 71
COMMUNITY REINVESTMENT BY BANKS
Sec.
7101. Definitions.
7102. Duties of banks.
7103. Duties of department.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19

7104. Community reinvestment notice.
7105. Assessment of banks.
7106. Lists of banks by department.
7107. Transaction approval.
§ 7101. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Bank." A banking institution as defined under section 6102
(relating to definitions). The term does not include a special
purpose bank that does not perform commercial or retail banking
services in which credit is granted to the public in the
ordinary course of business, other than as an incident to the
special purpose bank's specialized operations, including, but
not limited to, banker's banks and banks that engage only in
providing cash management controlled disbursement services or
serving as correspondent banks, trust companies or clearing
agents.
"Community reinvestment laws." The provisions of 12 U.S.C.
Ch. 30 (relating to community reinvestment), and the regulations
adopted by the Federal financial supervisory agencies as
provided under 12 CFR Ch. I Pt. 25 (relating to Community
Reinvestment Act and interstate deposit production regulations),
Ch. II Subch. A Pt. 228 (relating to community reinvestment
(regulation BB)) and Ch. III Subch. B Pt. 345 (relating to
community reinvestment), as applicable to the specific type of
bank.
"Community reinvestment performance." The performance of a
nonbank entity in helping to meet the credit needs of the
community credit union's entire community, including low-income
20250SB0119PN0070 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

neighborhoods and moderate-income neighborhoods.
"Department." The Department of Banking and Securities of
the Commonwealth.
"Federal financial supervisory agency." The Office of the
Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the Federal Deposit Insurance
Corporation and any successor to such agencies, as applicable to
the specific type of bank.
§ 7102. Duties of banks.
(a) Local communities.--Each bank shall, in accordance with
the provisions of community reinvestment laws and without
excluding low-income neighborhoods and moderate-income
neighborhoods, delineate the local community or communities that
comprise the bank's entire community within this Commonwealth or
delineate one or more assessment areas, as applicable, within
which the department shall evaluate the bank's record of helping
to meet the credit needs of the entire community. The department
shall review the delineation for compliance with community
reinvestment laws and this subsection in connection with an
examination of the bank under section 401 of the act of May 15,
1933 (P.L.565, No.111), known as the Department of Banking and
Securities Code.
(b) Loan information.--Each bank shall collect and report
loan information in accordance with the applicable requirements
of community investment laws. Each bank shall file with the
department a copy of each disclosure statement prepared for the
bank by a Federal financial supervisory agency under community
investment laws within 30 business days of receiving the
statement.
(c) Public access.--Copies of the public section of the most
20250SB0119PN0070 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

recent community reinvestment performance evaluation prepared by
the department under section 7105(b)(2) (relating to assessment
of banks) shall be provided to the public by mail, upon request.
A bank may charge a reasonable fee not to exceed the cost of
copying and mailing, if applicable.
(d) Public file.--Each bank shall maintain a public file in
accordance with community reinvestment laws. Each bank shall
place a copy of the public section of the bank's most recent
community reinvestment performance evaluation prepared by the
department under section 7105(b)(2) in the public file within 30
business days of receipt from the department. The bank may also
include in the public file any response to the community
reinve