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.

Summary

Addressing Wealth Disparities

Bill Text

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The bill adds a new article to the existing Pennsylvania Department of Banking and Securities Code to address financial services in underserved communities.

• Act of May 15, 1933 (P.L.565, No.111)

  ARTICLE XI-B BUILDING UNDERSERVED COMMUNITIES Section 1101-B. Definitions. The following words and phrases when used in this article shall have the meanings given to them in this section unless the context clearly indicates otherwise: "Financial institution." An institution or credit union. "Small business." A for-profit entity located in an underserved community with less than 50 employees. "Underserved community." A community with qualified census tracts where at least 50% of households have an income less than 60% of the area median gross income according to the United States Department of Housing and Urban Development or have a poverty rate of at least 25% or more according to the most recent Federal decennial census.

  This addition establishes definitions relevant to the new article addressing underserved communities.

• Act of May 15, 1933 (P.L.565, No.111)

  Section 1102-B. Financial institution assistance. The department shall: (1) Examine the efforts of financial institutions to provide financial services to underserved communities. (2) Provide assistance to financial institutions to provide access to financial services and other methods of building wealth for members of underserved communities. (3) Coordinate with financial institutions to develop new financial products that build generational wealth in underserved communities, including investing in real estate, retirement, savings and checking accounts and other methods to build wealth.

  This section mandates the Department of Banking to assist financial institutions in serving underserved communities.

• Act of May 15, 1933 (P.L.565, No.111)

  Section 1103-B. Financial institution requirements. (a) Plans.--Each financial institution shall create a short-term plan and a long-term plan to expand the geographic territory of the financial institution and offer financial products or services to an underserved community. (b) Report.--By October 1, 2026, and every October 1 thereafter for the immediately preceding year, each financial institution shall submit a report to the department, which shall include: (1) Financial products and services provided to underserved communities by the financial institution. (2) The number of individuals in an underserved community who utilized financial products or services provided by the financial institution in the previous year. (3) Financial losses or gains resulting from assistance under section 1102-B. (4) Any financial product or service provided to a small business as a result of assistance provided under section 1102-B. (5) Any other information determined by the department.

  This section requires financial institutions to develop plans and report on their services to underserved communities.

• Act of May 15, 1933 (P.L.565, No.111)

  Section 1104-B. Additional duties of department. (a) Duties.--The department shall: (1) Review and compile financial institution reports submitted under section 1103-B. (2) Consult with financial institutions on best practices and methods on developing short-term and long-term plans required under section 1103-B(a). (3) Develop and publish a report by January 1, 2026, and every January 1 thereafter, which shall include: (i) Information obtained from reports of the financial institution. (ii) The number of financial institutions providing services to underserved communities. (iii) The number and types of services that are being provided to underserved communities. (iv) The number of individuals from underserved communities that were provided with financial services and were unable to receive similar services prior to the effective date of this section. (v) The cost-benefit analysis of providing greater access to financial services in underserved communities. (b) Submission.--The annual report under this section shall be submitted to the Governor, the Secretary of Community and Economic Development, the President pro tempore of the Senate, the Speaker of the House of Representatives, the chairperson and minority chairperson of the Appropriations Committee of the Senate, the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives, the chairperson and minority chairperson of the Banking and Insurance Committee of the Senate and the chairperson and minority chairperson of the Commerce Committee of the House of Representatives.

  This section establishes additional responsibilities for the Department of Banking regarding financial institutions and underserved communities.

Action History

1. September 04, 2025

   Referred to COMMERCE, Sept. 4, 2025

Sponsors

• G. Roni Green · Primary
• Tarik Khan · Cosponsor
• Ben Waxman · Cosponsor
• Carol Hill-Evans · Cosponsor
• Maureen E. Madden · Cosponsor
• Robert Freeman · Cosponsor
• La'Tasha D. Mayes · Cosponsor
• Benjamin V. Sanchez · Cosponsor
• Johanny Cepeda-Freytiz · Cosponsor
• Anthony A. Bellmon · Cosponsor
• Heather Boyd · Cosponsor
• Ismail Smith-Wade-El · Cosponsor
• Darisha K. Parker · Cosponsor
• Justin C. Fleming · Cosponsor
• Jose Giral · Cosponsor
• Carol Kazeem · Cosponsor
• Dan K. Williams · Cosponsor

Subjects