SB 83 — AN ACT TO AMEND TITLE 5 OF THE DELAWARE CODE RELATING TO THE DELAWARE COMMUNITY INVESTMENT VENTURE FUND.

Brown DELAWARE& STATERep. SENATE 152nd GENERAL ASSEMBLY SENATE AMENDMENT NO.

1Dorsey TOWalker SENATE& SUBSTITUTERep. NO.

Bush Sens.

Lockman, Mantzavinos, Pinkney, Richardson;

Rep.

K.

Johnson DELAWARE STATE SENATE 152nd GENERAL ASSEMBLY SENATE SUBSTITUTE NO.

83 AN ACT TO AMEND SenateTITLE Substitute5 No.OF THE DELAWARE CODE RELATING TO THE DELAWARE COMMUNITY INVESTMENT VENTURE FUND.

1BE toIT SenateENACTED BillBY No.THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

83,Section on1. line 11, by deleting the words “within the State Treasury”.

FURTHERAmend AMENDSubchapter SenateI, SubstituteChapter No.1, Title 5 of the Delaware Code by adding a new § 109, and by making deletions as shown by strike through and insertions as shown by underline as follows:

1§ to109. Senate Bill No.

83,Delaware byCommunity addingInvestment theVenture followingFund. after line 38:

“(g)(a) AllIn amountsthis transferredsection, to the Delawarefollowing Communitywords Investmenthave Venture Fund shall be invested by the Statemeanings Treasurerindicated: consistent with the standards established by the Cash Management Policy Board.

The(1) State“Low- Treasurerto shallmoderate-income credittract” interestmeans toa thecensus fundtract ondelineated aby monthlythe basisUnited consistentStates withCensus Bureau in the ratemost establishedrecent decennial census as published by the CashFederal ManagementFinancial PolicyInstitutions Board.”Examination SYNOPSISCouncil Thisthat amendmentcorresponds makesto low- to moderate-income level classifications as defined by the followingregulation twoof changesthe toFederal SenateReserve SubstituteBoard No.implementing the Federal Community Reinvestment Act, 12 C.F.R.

1228.12; to Senate Bill No.

83:provided, however, that the Commissioner may designate a successor index for the low- to moderate-income tract if the Federal Financial Institutions Examination Council tract income level data is no longer published.

(1)(b) ItThere removesis thehereby requirementcreated thatwithin the DelawareState CommunityTreasury Investmenta Venturespecial Fundfund to be establisheddesignated withinas the StateDelaware TreasuryCommunity toInvestment allowVenture forFund. flexibility.

(2)(c) ItThe addspurpose aof provisionthe aboutDelaware standardCommunity cashInvestment managementVenture practiceFund whichis makesto cleardevelop thatopportunities interestfor earnedbanking byorganizations, theCommunity DelawareDevelopment CommunityFinancial InvestmentInstitutions, Ventureand Fundcredit isunions todoing bebusiness creditedin this State to better serve the Fund.needs of low- to moderate-income tracts in this State by:

(1) Investing in the development of financial product or financial product underwriting innovations that will enhance access to capital, funding, and other financial services for businesses in low- to moderate-income tracts in Delaware;

(2) Deploying, testing, and evaluating these innovations for providing capital and funding to businesses in low- to moderate-income tracts in Delaware;

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04/26/2023 09:33 AM (3) Promoting and making these innovations available to a variety of banking organizations, Community Development Financial Institutions, and credit unions for use in enhancing access to capital, funding, and other financial services for businesses in low- to moderate-income tracts in Delaware.

(d) The Commissioner may transfer the following amounts, in one or more transfers, from the State Bank Commissioner Regulatory Revolving Fund to the Delaware Community Investment Venture Fund:

(1) An initial amount up to $2,500,000.

(2) An additional amount up to $250,000 to cover the expenses associated with organizing the activities of the Delaware Community Investment Venture Fund, including accounting, advisory, third-party service provider, marketing, and other necessary expenses.

(3) Through June 30, 2028, an additional amount up to $500,000 each fiscal year.

(4) After June 30, 2028, the Commissioner may not transfer any amount from the State Bank Commissioner Regulatory Revolving Fund to the Delaware Community Investment Venture Fund.

(e) The Council on Banking, with the approval of the Commissioner, may:

(1) Authorize expenditures from the Delaware Community Investment Venture Fund to accomplish the purposes of this section.

(2) Adopt guidelines or regulations to carry out the purposes of this section.

(f) Expenditures from the Delaware Community Investment Venture Fund shall be exempt from Chapter 69 of Title 29.

SYNOPSIS This Act creates the Delaware Community Investment Venture Fund to develop opportunities for banking organizations and credit unions doing business in Delaware to better serve the needs of low to moderate income tracts in Delaware.

The source of funds will be transfers from the Delaware State Bank Commissioner Regulatory Revolving Fund (established in Section 105 of Title 5), which currently has an amount in excess of that needed to cover the operating expenses of the Office of the State Bank Commissioner.

The initial transfer will be up to $2.5 million, plus another $250,000 for expenses.

Thereafter, additional transfers of up to $500,000 each fiscal year are authorized.

No further transfers are authorized after June 30, 2028, unless further legislation is approved by the General Assembly.

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