HB 1833 — An Act amending the act of May 15, 1933 (P.L.565, No.111), known as the Department of Banking and Securities Code, providing for building underserved communities; and imposing duties on the Department of Banking and Securities.

PRINTER'S NO.   2256

                     THE GENERAL ASSEMBLY OF PENNSYLVANIA



                         HOUSE BILL
                         No. 1833
                                               Session of
                                                 2025

     INTRODUCED BY GREEN, KHAN, GIRAL, WAXMAN, HILL-EVANS, MADDEN,
        FREEMAN, MAYES, SANCHEZ, KAZEEM, CEPEDA-FREYTIZ, D. WILLIAMS,
        BELLMON, BOYD AND SMITH-WADE-EL, SEPTEMBER 2, 2025

     REFERRED TO COMMITTEE ON COMMERCE, SEPTEMBER 4, 2025


                                    AN ACT
 1   Amending the act of May 15, 1933 (P.L.565, No.111), entitled "An
 2      act relating to the powers and duties of the Department of
 3      Banking and Securities and the Secretary of Banking and
 4      Securities in exercising supervision over, and taking
 5      possession of and conducting or liquidating the business and
 6      property of, corporations, associations, and persons
 7      receiving deposits or otherwise transacting a banking
 8      business, corporations acting as fiduciaries, and building
 9      and loan associations; providing for the payment of the
10      expenses of the Department of Banking by supervised
11      corporations, associations, or persons, and appropriating the
12      Banking Department Fund; authorizing the Department of
13      Banking, under certain circumstances, to examine
14      corporations, associations, or persons affiliated, or having
15      business transactions with supervised corporations,
16      associations or persons; authorizing appeals to the Supreme
17      Court, and prescribing and limiting the powers and duties of
18      certain other courts and their prothonotaries, registers of
19      wills, recorders of deeds, and certain State departments,
20      commissions, and officers; authorizing certain local public
21      officers and State departments to collect fees for services
22      rendered under this act; regulating securities; providing
23      penalties; and repealing certain acts and parts of acts,"
24      providing for building underserved communities; and imposing
25      duties on the Department of Banking and Securities.
26      The General Assembly of the Commonwealth of Pennsylvania
27   hereby enacts as follows:
28      Section 1.    The act of May 15, 1933 (P.L.565, No.111), known
29   as the Department of Banking and Securities Code, is amended by
 1   adding an article to read:
 2                                ARTICLE XI-B
 3                      BUILDING UNDERSERVED COMMUNITIES
 4   Section 1101-B.    Definitions.
 5      The following words and phrases when used in this article
 6   shall have the meanings given to them in this section unless the
 7   context clearly indicates otherwise:
 8      "Financial institution."       An institution or credit union.
 9      "Small business."    A for-profit entity located in an
10   underserved community with less than 50 employees.
11      "Underserved community."       A community with qualified census
12   tracts where at least 50% of households have an income less than
13   60% of the area median gross income according to the United
14   States Department of Housing and Urban Development or have a
15   poverty rate of at least 25% or more according to the most
16   recent Federal decennial census.
17   Section 1102-B.    Financial institution assistance.
18      The department shall:
19            (1)   Examine the efforts of financial institutions to
20      provide financial services to underserved communities.
21            (2)   Provide assistance to financial institutions to
22      provide access to financial services and other methods of
23      building wealth for members of underserved communities.
24            (3)   Coordinate with financial institutions to develop
25      new financial products that build generational wealth in
26      underserved communities, including investing in real estate,
27      retirement, savings and checking accounts and other methods
28      to build wealth.
29   Section 1103-B.    Financial institution requirements.
30      (a)   Plans.--Each financial institution shall create a short-

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 1   term plan and a long-term plan to expand the geographic
 2   territory of the financial institution and offer financial
 3   products or services to an underserved community.
 4      (b)     Report.--By October 1, 2026, and every October 1
 5   thereafter for the immediately preceding year, each financial
 6   institution shall submit a report to the department, which shall
 7   include:
 8            (1)   Financial products and services provided to
 9      underserved communities by the financial institution.
10            (2)   The number of individuals in an underserved
11      community who utilized financial products or services
12      provided by the financial institution in the previous year.
13            (3)   Financial losses or gains resulting from assistance
14      under section 1102-B.
15            (4)   Any financial product or service provided to a small
16      business as a result of assistance provided under section
17      1102-B.
18            (5)   Any other information determined by the department.
19   Section 1104-B.       Additional duties of department.
20      (a)     Duties.--The department shall:
21            (1)   Review and compile financial institution reports
22      submitted under section 1103-B.
23            (2)   Consult with financial institutions on best
24      practices and methods on developing short-term and long-term
25      plans required under section 1103-B(a).
26            (3)   Develop and publish a report by January 1, 2026, and
27      every January 1 thereafter, which shall include:
28                  (i)    Information obtained from reports of the
29            financial institution.
30                  (ii)    The number of financial institutions providing

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 1            services to underserved communities.
 2                (iii)    The number and types of services that are
 3            being provided to underserved communities.
 4                (iv)    The number of individuals from underserved
 5            communities that were provided with financial services
 6            and were unable to receive similar services prior to the
 7            effective date of this section.
 8                (v)    The cost-benefit analysis of providing greater
 9            access to financial services in underserved communities.
10      (b)   Submission.--The annual report under this section shall
11   be submitted to the Governor, the Secretary of Community and
12   Economic Development, the President pro tempore of the Senate,
13   the Speaker of the House of Representatives, the chairperson and
14   minority chairperson of the Appropriations Committee of the
15   Senate, the chairperson and minority chairperson of the
16   Appropriations Committee of the House of Representatives, the
17   chairperson and minority chairperson of the Banking and
18   Insurance Committee of the Senate and the chairperson and
19   minority chairperson of the Commerce Committee of the House of
20   Representatives.
21      Section 2.      This act shall take effect in 60 days.




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