Commercial Financing - Small Business Truth in Lending Act

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
*hb1007*

HOUSE BILL 1007
I1 6lr3502
HB 693/25 – ECM CF 6lr2830
By: Delegate Fraser–Hidalgo
Introduced and read first time: February 6, 2026
Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning 1

Commercial Financing – Small Business Truth in Lending Act 2

FOR the purpose of regulating commercial financing transactions, including by 3
establishing requirements related to certain disclosures, calculations of annual 4
percentage rates, terms of repayments, and other related items, and the extension of 5
specific offers; and generally relating to commercial financing transactions. 6

BY adding to 7
Article – Financial Institutions 8
Section 12 –1301 through 12 –1314 to be under the new subtitle “Subtitle 13. 9
Commercial Financing” 10
Annotated Code of Maryland 11
(2020 Replacement Volume and 2025 Supplement) 12

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13
That the Laws of Maryland read as follows: 14

Article – Financial Institutions 15

SUBTITLE 13. COMMERCIAL FINANCING. 16

12–1301. 17

(A) IN THIS SUBTITLE THE FOLLOWING WORDS HAVE THE MEANINGS 18
INDICATED. 19

(B) (1) “CLOSED–END FINANCING” MEANS A CLOSED–END EXTENSION OF 20
CREDIT, SECURED OR UNSECURED, INCLUDING EQUIPMENT FINANCING, THAT: 21

2 HOUSE BILL 1007

(I) DOES NOT MEET THE DEF INITION OF A LEASE U NDER 1
ARTICLE 2A OF THE UNIFORM COMMERCIAL CODE; AND 2

(II) THE PROCEEDS OF WHICH A RECIPIENT DOES NOT INTEND 3
TO USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES. 4

(2) “CLOSED–END FINANCING” INCLUDES FINANCING T HAT HAS AN 5
ESTABLISHED PRINCIPAL AMOUNT AND DURATION. 6

(C) “COMMERCIAL FINANCING ” MEANS OPEN –END FINANCING , 7
CLOSED–END FINANCING, SALES–BASED FINANCING, A FACTORING TRANSACTION, 8
OR ANOTHER FORM OF FINANCING, THE PROCEEDS OF WHICH THE RECIPIENT DOES 9
NOT INTEND TO USE PR IMARILY FOR PERSONAL , FAMILY, OR HOUSEHOLD 10
PURPOSES. 11

(D) “FACTORING TRANSACTION ” MEANS AN ACCOUNTS RE CEIVABLE 12
PURCHASE TRANSACTION: 13

(1) THAT INCLUDES AN AGRE EMENT TO PURCHASE , TRANSFER, OR 14
SELL A LEGALLY ENFOR CEABLE CLAIM FOR PAY MENT HELD BY A RECIP IENT FOR 15
GOODS THE RECIPIENT HAS SUPPLIED OR SERVICES THE RECIPIENT HAS RENDERED 16
THAT HAVE BEEN ORDERED BUT FOR WHICH PAYMENT HAS NOT BEEN MADE; AND 17

(2) THE PROCEEDS OF WHICH THE RECIPIENT DOES NOT INTEND TO 18
USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES. 19

(E) (1) “FINANCE CHARGE ” MEANS THE COST OF CO MMERCIAL 20
FINANCING REPRESENTED AS A DOLLAR AMOUNT. 21

(2) “FINANCE CHARGE” INCLUDES: 22

(I) A CHARGE PAYABLE DIREC TLY OR INDIRECTLY BY A 23
RECIPIENT AND IMPOSE D DIRECTLY OR INDIRE CTLY BY A PROVIDER A S AN 24
INCIDENT TO OR A CONDITION OF THE EXTENSION OF COMMERCIAL FINANCING; 25

(II) A CHARGE THAT WOULD BE INCLUDED UNDER 12 C.F.R. § 26
1026.4 IF A TRANSACTION WERE SUBJECT TO 12 C.F.R. § 1026.4; AND 27

(III) ANY ADDITIONAL CHARGE S DETERMINED BY THE 28
COMMISSIONER. 29

(F) (1) “OPEN–END FINANCING ” MEANS AN AGREEMENT F OR ONE OR 30
MORE EXTENSIONS OF S ECURED OR UNSECURED OPEN–END CREDIT , THE 31
HOUSE BILL 1007 3

PROCEEDS OF WHICH A RECIPIENT DOES NOT I NTEND TO US E PRIMARILY FOR 1
PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES. 2

(2) “OPEN–END FINANCING ” INCLUDES CREDIT EXTE NDED BY A 3
PROVIDER UNDER A PLAN IN WHICH: 4

(I) THE PROVIDER REASONAB LY CONTEMPLATES REPE ATED 5
TRANSACTIONS; 6

(II) THE PROVIDER MAY IMPO SE A FINANC E CHARGE ON AN 7
OUTSTANDING UNPAID BALANCE; AND 8

(III) THE AMOUNT OF CREDIT THAT MAY BE EXTENDED TO A 9
RECIPIENT DURING THE TERM OF THE PLAN , UP TO A LIMIT THAT T HE PROVIDER 10
SETS, IS GENERALLY MADE AV AILABLE TO THE EXTEN T THAT ANY OUTSTANDI NG 11
BALANCE IS REPAID. 12

(G) (1) “PROVIDER” MEANS A PERSON THAT EXTENDS A SPECIFIC OFFER 13
OF COMMERCIAL FINANCING TO A RECIPIENT. 14

(2) “PROVIDER” INCLUDES A PERSON THAT SOLICITS AND PRESENTS 15
A SPECIFIC OFFER OF COMMERCIAL FINANCING ON BEHALF OF A THIRD PARTY. 16

(H) (1) “RECIPIENT” MEANS A PERSON , OR THE PERSON ’S AUTHORIZED 17
REPRESENTATIVE, THAT APPLIES FOR COM MERCIAL FINANCING AN D IS MADE A 18
SPECIFIC OFFER OF COMMERCIAL FINANCING BY A PROVIDER. 19

(2) “RECIPIENT” DOES NOT INCLUDE A P ERSON ACTING AS A 20
BROKER. 21

(I) (1) “SALES–BASED FINANCING” MEANS A TRANSACTION: 22

(I) THAT IS REPAID BY A RECIPIENT TO A PROVIDER OVER TIME 23
AS A PERCENTAGE OF S ALES OR REVENUE, IN WHICH THE PAYMENT AMOUNT MAY 24
INCREASE OR DECREASE ACCORDING TO THE VOLUME OF SALES MADE OR REVENUE 25
RECEIVED BY THE RECIPIENT; AND 26

(II) THE PROCEEDS OF WHICH THE RECIPIENT DOES N OT 27
INTEND TO USE PRIMARILY FOR PERSONAL, FAMILY, OR HOUSEHOLD PURPOSES. 28

(2) “SALES–BASED FINANCING ” INCLUDES A TRANSACTI ON 29
CONTAINING A TRUE–UP MECHANISM UNDER WHICH THE FINANCING IS REPAID AS 30
A FIXED PAYMENT BUT PROVIDES FOR A RECONCILIATION PROCESS THAT ADJUSTS 31
THE PAYMENT TO AN AMOUNT THAT IS A PERCENTAGE OF SALES OR REVENUE. 32
4 HOUSE BILL 1007

(J) “SPECIFIC OFFER ” MEANS THE TERMS OF C OMMERCIAL FINANCING 1
THAT ARE QUOTED TO A RECIPIENT, BASED ON INFORMATION OBTAINED FROM OR 2
ABOUT THE RECIPIENT, THAT, IF ACCEPTED BY THE RECIPIENT, ARE BINDING ON A 3
PROVIDER, AS APPLICABLE, SUBJECT TO REQUIREMENTS STATED IN THE TERMS OF 4
THE COMMERCIAL FINANCING. 5

12–1302. 6

THIS SUBTITLE DOES NOT APPLY TO: 7

(1) (I) A FEDERAL OR STATE BANK , CREDIT UNION, OR SAVINGS 8
ASSOCIATION; OR 9

(II) A SUBSIDIARY OR AFFILIATE OF AN ORGANIZATION LISTED 10
IN ITEM (I) OF THIS ITEM; 11

(2) A PERSON ACTING AS A TECHNOLOGY SERVICES PROVIDER TO AN 12
ENTITY EXEMPT UNDER THIS SECTION FOR USE AS PART OF THE ENTIT Y’S 13
COMMERCIAL FINANCING PROGRAM IF THE PERSON DOES NOT HAVE AN INTEREST, 14
ARRANGEMENT, OR AGREEMENT TO PURCHASE ANY INTEREST IN THE COMMERCIAL 15
FINANCING EXTENDED B Y THE ENTITY IN CONN ECTION WITH THE COMM ERCIAL 16
FINANCING PROGRAM; 17

(3) A LENDER REGULATED UNDER THE FEDERAL FARM CREDIT ACT; 18

(4) A COMMERCIAL FINANCING TRANSACTION SECURED BY REAL 19
PROPERTY; 20

(5) A LEASE AS DEFINED IN ARTICLE 2A OF THE UNIFORM 21
COMMERCIAL CODE; 22

(6) A PROVIDER OR OTHER PE RSON WHO MAKES NOT M ORE THAN 23
FIVE COMMERCIAL FINA NCING TRANSACTIONS I N THE STATE IN A 12–MONTH 24
PERIOD; 25

(7) A COMMERCIAL FINANCING TRANSACTION OF MORE THAN 26
$2,500,000; 27

(8) A COMMERCIAL FINANCING TRANSACTION: 28

(I) IN WHICH THE RECIPIENT IS: 29

HOUSE BILL 1007 5

1. A DEALER, OR AN AFFILIATE OF A DEALER, AS 1
DEFINED IN § 11–111 OF THE TRANSPORTATION ARTICLE; OR 2

2. A RENTAL VEHICLE COMPANY, OR AN AFFILIATE OF A 3
RENTAL VEHICLE COMPA NY, AS DEFINED IN § 18–108 OF THE TRANSPORTATION 4
ARTICLE; AND 5

(II) MADE UNDER A COMMERCI AL FINANCING AGREEMENT OR 6
COMMERCIAL OPEN –END CREDIT PLAN OF A T LEAST $50,000, INCLUDING A 7
COMMERCIAL LOAN MADE IN ACCORDANCE WITH T HE COMMERCIAL FINANC ING 8
TRANSACTION; 9

(9) A COMMERCIAL FINANCING TRANSACTION THAT IS A FACTORING 10
TRANSACTION, AN ADVANCE , OR A SIMILAR TRANSAC TION OF ACCOUNTS 11
RECEIVABLE OWED TO A HEALTH CARE PROVIDER BECAUSE OF A PATIENT ’S 12
PERSONAL INJURY TREATED BY THE HEALTH CARE PROVIDER; OR 13

(10) A PREMIUM FINANCE AGREEMENT, AS DEFINED IN § 23–101 OF 14
THE INSURANCE ARTICLE. 15

12–1303. 16

(A) EXCEPT AS PROVIDED IN § 12–1307 OF THIS SUBTITLE, FOR PURPOSES 17
OF THIS SUBTITLE, AN ANNUAL PERCENTAGE RATE SHALL BE: 18

(1) EXPRESSED AS A YEARLY RATE, INCLUDING ALL FEES A ND 19
FINANCE CHARGES; AND 20

(2) CALCULATED IN ACCORDA NCE WITH THE FEDERAL TRUTH IN 21
LENDING ACT. 22

(B) IN ADDITION TO THE RE QUIREMENTS OF SUBSEC TION (A)(2) OF THIS 23
SECTION, AN ANNUAL PERCENTAGE RATE SHALL BE CALCUL ATED BASED ON THE 24
ESTIMATED TERM OF RE PAYMENT A ND THE PROJECTED PER IODIC PAYMENT 25
AMOUNTS OF A COMMERCIAL FINANCING TRANSACTION, REGARDLESS OF WHETHER 26
FEDERAL LAW OR REGULATION WOULD REQUIRE AN ANNUAL PERCENTAGE RATE TO 27
BE CALCULATED FOR A CERTAIN TRANSACTION. 28

(C) THIS SECTION MAY NOT BE CONSTRUED TO IMPOSE ANY LIABILITY ON A 29
PROVIDER THAT CHARGES AN ANNUAL PERCENTAGE RATE THAT DIFFERS FROM THE 30
ESTIMATED ANNUAL PER CENTAGE RATE DISCLOS ED BY THE PROVIDER I N 31
ACCORDANCE WITH THIS SUBTITLE OR ANY REGU LATION ADOPTED UNDER THIS 32
SUBTITLE. 33

6 HOUSE BILL 1007

12–1304. 1

(A) IN TH IS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 2
DISBURSEMENT AMOUNT OF A SALES –BASED FINANCING TRAN SACTION PLUS THE 3
FINANCE CHARGE. 4

(B) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO 5
A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER OF SALES–BASED FINANCING: 6

(I) THE TOTAL AMOUNT OF THE SALES–BASED FINANCING AND 7
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 8
MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSEMENT; 9

(II) THE FINANCE CHARGE; 10

(III) THE ESTIMATED ANNUAL PERCENTAGE RATE OF THE 11
SALES–BASED FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RATE” OR THE 12
ABBREVIATION “APR”; 13

(IV) THE TOTAL REPAYMENT AMOUNT; 14

(V) THE ESTIMATED TERM OF REPAYMENT, AS DEFINED IN § 15
12–1305 OF THIS SUBTITLE; 16

(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 17
PROJECTED PERIODIC PAYMENT AMOUNTS; 18

(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 19
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES, LATE 20
PAYMENT FEES, AND RETURNED PAYMENT FEES; AND 21

(VIII) IF APPLICABLE, A DESCRIPTION OF COL LATERAL 22
REQUIREMENTS OR SECURITY INTERESTS. 23

(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 24
SHALL DISCLOSE: 25

1. THE PAYMENT AMOUNTS AND FREQUENCY; AND 26

2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 27
MONTHLY, THE AMOUNT OF THE AVERAGE PROJECTED PAYMENTS PER MONTH. 28

(II) FOR PAYMENT AMOUNTS THAT ARE VARIABLE, A PROVIDER 29
SHALL DISCLOSE: 30
HOUSE BILL 1007 7

1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 1
METHOD USED TO CALCULATE THE AMOUNTS AND FREQUENCY OF PAYMENTS; AND 2

2. THE AMOUNT OF THE AVE RAGE PROJECTED 3
PAYMENTS PER MONTH. 4

(C) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE SALES–BASED 5
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 6
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 7
PAY: 8

(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 9
ACCRUED SINCE THE RECIPIENT’S LAST PAYMENT; AND 10

(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 11
CHARGE. 12

(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 13
FINANCE CHARGES OTHER THAN THE INTEREST ACCRUED SINCE THE RECIPIENT’S 14
LAST PAYMENT, A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 15
PORTION OF THE FINAN CE CHARGE AND THE MA XIMUM DOLLAR AMOUNT THE 16
RECIPIENT COULD BE REQUIRED TO PAY. 17

12–1305. 18

(A) IN THIS SECTION , “ESTIMATED TERM OF REPAYMENT ” MEANS THE 19
AMOUNT OF TIME REQUIRED FOR THE PERIODIC PAYMENTS MADE BY A RECIPIENT 20
IN A SALES –BASED FINANCING TRAN SACTION TO EQUAL THE TOTAL AMOUNT 21
REQUIRED TO BE REPAID. 22

(B) (1) A PROVIDER SHALL USE T HE PROJECTED SALES V OLUME OF A 23
RECIPIENT TO CALCULA TE THE FOLLOWING INF ORMATION RELATED TO A 24
SALES–BASED FINANCING TRANSACTION: 25

(I) THE ESTIMATED TERM OF REPAYMENT AND THE 26
PROJECTED PAYMENT AMOUNTS OF A SALES–BASED FINANCING TRANSACTION; AND 27

(II) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A 28
SALES–BASED FINANCING TRANSACTION. 29

(2) THE ESTIMATED ANNUAL PERCENTAGE RATE OF A SALES–BASED 30
FINANCING TRANSACTION SHALL BE CALCULATED: 31

8 HOUSE BILL 1007

(I) IN ACCORDANCE WITH TH E FEDERAL TRUTH IN LENDING 1
ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 2

(II) BASED ON THE ESTIMATE D TERM OF REPAYMENT AND 3
PROJECTED SALES VOLUME OF A RECIPIENT. 4

(C) (1) A PROVIDER MAY CALCULATE THE PROJECTED SALES VOLUME OF 5
A RECIPIENT USING EITHER THE HISTORICAL METHOD OR THE OPT–IN METHOD. 6

(2) (I) A PROVIDER THAT USES T HE HISTORICAL METHOD TO 7
CALCULATE THE PROJEC TED SALES VOLUME OF A RECIPIENT SHALL US E AN 8
AVERAGE HISTORICAL VOLUME OF SALES OR REVENUE. 9

(II) A PROVIDER SHALL FIX T HE HISTORICAL TIME P ERIOD 10
USED TO CALCULATE THE AVERAGE HISTORICAL VOLUME AND USE THE SAME TIME 11
PERIOD FOR ALL DISCL OSURE PURPOSES FOR A NY SALES –BASED FINANCING 12
TRANSACTION PRODUCTS OFFERED. 13

(III) EXCEPT AS PROVIDED IN SUBPARAGRAPH (IV) OF THIS 14
PARAGRAPH, THE FIXED HISTORICAL TIME PERIOD: 15

1. MAY NOT BE LESS THAN 1 MONTH AND MAY NOT 16
EXCEED 12 MONTHS; AND 17

2. SHALL BE THE TIME PER IOD DIRECTLY BEFORE THE 18
SPECIFIC OFFER WAS MADE. 19

(IV) A PROVIDER MAY CHOOSE TO USE THE AVERAGE SALES FOR 20
THE SAME NUMBER OF M ONTHS AS THE PROVIDE R W OULD HAVE USED UNDER 21
SUBPARAGRAPH (III) OF THIS PARAGRAPH WI TH THE HIGHEST SALES VOLUME 22
WITHIN THE PAST 12 MONTHS. 23

(3) A PROVIDER MAY USE THE OPT–IN METHOD TO DETERMI NE THE 24
INFORMATION LISTED U NDER SUBSECTION (B)(1) OF THIS SECTION BY U SING A 25
PROJECTED SALES VOLUME THAT THE PROVIDER CHOOSES FOR EACH DISCLOSURE 26
IF THE RECIPIENT PAR TICIPATES IN A REVIE W PROCESS ESTABLISHE D BY THE 27
COMMISSIONER. 28

(D) A PROVIDER SHALL NOTIFY THE COMMISSIONER OF WHICH OF THE TWO 29
METHODS THE PROVIDER INTENDS TO USE WHEN CALCULATING THE ESTIMATED 30
ANNUAL PERCENTAGE RATE OF EACH SALES–BASED FINANCING TRANSACTION. 31

HOUSE BILL 1007 9

(E) (1) ON OR BEFORE JANUARY 1 EACH YEAR , A PROVIDER THAT 1
ELECTS TO USE THE OP T–IN METHOD UNDER SUBSECTION (C)(3) OF THIS SECTION 2
SHALL REPORT TO THE COMMISSIONER ON: 3

(I) THE ESTIMATED ANNUAL PERCENTAGE RATES GIV EN TO 4
EACH RECIPIENT; AND 5

(II) THE ACTUAL ANNUAL PER CENTAGE RATES OF EAC H 6
COMPLETED SALES–BASED FINANCING TRANSACTION. 7

(2) (I) THE REPORT REQUIRED U NDER PARAGRAPH (1) OF THIS 8
SUBSECTION SHALL CONTAIN ANY INFORMATION THE COMMISSIONER CONSIDERS 9
NECESSARY TO DETERMI NE WHETHER THE DEVIA TION BETWEEN THE EST IMATED 10
ANNUAL PERCENTAGE RA TES AND ACTUAL ANNUA L PERCENTAGE RATES O F 11
COMPLETED SALES–BASED FINANCING TRANSACTIONS IS REASONABLE. 12

(II) THE COMMISSIONER MAY CONSIDER EXTRAOR DINARY 13
CIRCUMSTANCES WHEN D ETERMINING WHETHER T HE PROVIDER ’S DEVIATION 14
BETWEEN THE ESTIMATE D ANNUAL PERCENTAGE RATE AND ACTUAL ANNU AL 15
PERCENTAGE RATE OF A SALES–BASED FINANCING TRANSACTION IS REASONABLE. 16

(III) IF THE COMMISSIONER F INDS THAT THERE WAS AN 17
UNREASONABLE DEVIATI ON BETWEEN ESTIMATED AND ACTUAL ANNUAL 18
PERCENTAGE RATES OF SALES–BASED FINANCING TRAN SACTIONS, THE 19
COMMISSIONER MAY REQU IRE THE PROVIDER TO USE THE HISTORICAL M ETHOD 20
INSTEAD OF THE OPT–IN METHOD IN DETERMINING THE PROJECTED SALES VOLUME 21
OF THE RECIPIENT. 22

12–1306. 23

(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 24
DISBURSEMENT AMOUNT OF A CLOSED –END FINANCING TRANSA CTION PLUS THE 25
FINANCE CHARGE. 26

(B) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO 27
A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR CLOSED–END FINANCING: 28

(I) THE TOTAL AMOUNT OF THE CLOSED–END FINANCING AND 29
THE DISBURSEMENT AMO UNT, IF DIFFERENT FROM TH E FINANCING AMOUNT , 30
MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSEMENT; 31

(II) THE TOTAL REPAYMENT AMOUNT; 32

(III) THE FINANCE CHARGE; 33
10 HOUSE BILL 1007

(IV) THE ANNUAL PERCENTAGE RATE OF THE CLOSED –END 1
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”; 3

(V) THE TERM OF THE FINANCING; 4

(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 5
PROJECTED PERIODIC PAYMENT AMOUNTS; 6

(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 7
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES, LATE 8
PAYMENT FEES, AND RETURNED PAYMENT FEES; AND 9

(VIII) IF APPLICABLE, A DESCRIPTION OF COL LATERAL 10
REQUIREMENTS OR SECURITY INTERESTS. 11

(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 12
SHALL DISCLOSE: 13

1. THE PAYMENT AMOUNTS AND FREQUENCY; AND 14

2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 15
MONTHLY, THE AMOUNT OF THE AVERAGE PROJECTED PAYMENTS PER MONTH. 16

(II) FOR PAYMENT AMOUNTS THAT ARE VARIABLE, A PROVIDER 17
SHALL DISCLOSE: 18

1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 19
METHOD USED TO CALCULATE THE AMOUNTS AND FREQUENCY OF PAYMENTS; AND 20

2. THE AMOUNT OF THE AVE RAGE PROJECTED 21
PAYMENTS PER MONTH. 22

(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 23
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION SHALL BE: 24

(I) EXPRESSED AS A YEARLY RATE, INCLUSIVE OF ANY FEE S 25
AND FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECIPIENT; AND 26

(II) CALCULATED IN ACCORDANCE WITH THE FEDERAL TRUTH 27
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22, REGARDLESS OF 28
WHETHER FEDERAL LAW OR REGULATION WOULD REQUIRE THE CALCULATION. 29

HOUSE BILL 1007 11

(C) (1) IF A RECIPIENT PAYS OFF OR REFINANCES TH E CLOSED –END 1
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 2
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 3
PAY: 4

(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 5
ACCRUED SINCE THE RECIPIENT’S LAST PAYMENT; AND 6

(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 7
CHARGE. 8

(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 9
FINANCE CHARGES OTHER THAN THE INTEREST ACCRUED SINCE THE RECIPIENT’S 10
LAST PAYMENT, A PROVIDER SHALL DIS CLOSE THE PERCENTA GE OF ANY UNPAID 11
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 12
RECIPIENT COULD BE REQUIRED TO PAY. 13

12–1307. 14

(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE DRAW 15
AMOUNT OF THE OPEN–END FINANCING TRANSACTION, MINUS ANY FEES DEDUCTED 16
OR WITHHELD AT DISBURSEMENT, PLUS THE FINANCE CHARGE. 17

(B) (1) WHEN CALCULATING THE TOTAL REPAYMENT AMOU NT IN 18
ACCORDANCE WITH THIS SECTION, A PROVIDER SHALL ASS UME A DRAW AMOUNT 19
EQUAL TO THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE TO THE RECIPI ENT IF 20
DRAWN AND HELD FOR THE DURATION OF THE TERM OR DRAW PERIOD. 21

(2) WHEN CALCULATING A FI NANCE CHARGE IN ACCO RDANCE WITH 22
THIS SECTION, A PROVIDER SHALL ASSUME THAT THE MAXIMUM AMOUNT OF CREDIT 23
AVAILABLE TO THE REC IPIENT, IN EACH CASE , IS DRAWN AND HELD FO R THE 24
DURATION OF THE TERM OF THE DRAW PERIOD. 25

(C) (1) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORMATION TO 26
A RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR OPEN–END FINANCING: 27

(I) THE MAXIMUM AMOUNT OF CREDIT AVAILABLE TO THE 28
RECIPIENT AND THE AMOUNT SCHEDULED TO BE DRAWN BY THE RECIPIENT AT THE 29
TIME THE OFFER IS EXTENDED, IF ANY, MINUS ANY FEES DEDUCTED OR WITHHELD 30
AT DISBURSEMENT; 31

(II) THE FINANCE CHARGE; 32

(III) THE TOTAL REPAYMENT AMOUNT; 33
12 HOUSE BILL 1007

(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 1
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”; 3

(V) THE TERM OF THE PLAN , IF APPLICABLE, OR THE PERIOD 4
OVER WHICH A DRAW IS AMORTIZED; 5

(VI) SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION , THE 6
PAYMENT FREQUENCY AND AMOUNTS; 7

(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 8
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING DRAW FEES, LATE 9
PAYMENT FEES, AND RETURNED PAYMENT FEES; AND 10

(VIII) IF APPLICABLE , A DESCRIPTION OF COL LATERAL 11
REQUIREMENTS OR SECURITY INTERESTS. 12

(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 13
SHALL DISCLOSE: 14

1. THE PAYMENT AMOUNTS AND FREQUENCY; AND 15

2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 16
MONTHLY, THE AMOUNT OF THE AVERAGE PROJECTED PAYMENTS PER MONTH. 17

(II) FOR PAYMENT AMOUNTS THAT ARE VARIABLE, A PROVIDER 18
SHALL DISCLOSE: 19

1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 20
METHOD USED TO CALCULATE THE AMOUNTS AND FREQUENCY OF PAYMENTS; AND 21

2. THE AMOUNT OF THE AVE RAGE PROJECTED 22
PAYMENTS PER MONTH. 23

(3) THE ANNUAL PERCENTAGE RATE REQUIRED TO BE DISCLOSED 24
UNDER PARAGRAPH (1)(IV) OF THIS SUBSECTION SHALL BE: 25

(I) EXPRESSED AS A NOMINA L YEARLY RATE , INCLUSIVE OF 26
ANY FEES AND FINANCE CHARGES THAT CANNOT BE AVOIDED BY A RECIPIENT; 27

(II) CALCULATED IN ACCORDANCE WITH THE FEDERAL TRUTH 28
IN LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026.22; AND 29

HOUSE BILL 1007 13

(III) BASED ON THE MAXIMUM AMOUNT OF CREDIT AVA ILABLE 1
TO THE RECIPIENT AND THE TERM RESULTING F ROM MAKING THE MINIM UM 2
REQUIRED PAYMENTS AS DISCLOSED, REGARDLESS OF WHETHER FEDERAL LAW OR 3
REGULATION WOULD REQUIRE THE CALCULATION. 4

(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE OPEN–END 5
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 6
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED T O 7
PAY: 8

(I) ANY FINANCE CHARGES O THER THAN THE INTERE ST 9
ACCRUED SINCE THE RECIPIENT’S LAST PAYMENT; AND 10

(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 11
CHARGE. 12

(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 13
FINANCE CHARGES OTHER THAN THE INTEREST ACCRUED SINCE THE RECIPIENT’S 14
LAST PAYMENT, A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 15
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 16
RECIPIENT COULD BE REQUIRED TO PAY. 17

12–1308. 18

(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE ME ANINGS 19
INDICATED. 20

(2) “FINANCE CHARGE” INCLUDES A DISCOUNT TAKEN ON THE FACE 21
VALUE OF THE ACCOUNTS RECEIVABLE. 22

(3) “TOTAL PAYMENT AMOUNT” MEANS THE PURCHASE A MOUNT OF 23
THE FACTORING TRANSACTION PLUS THE FINANCE CHARGE. 24

(B) A PROVIDER SHALL DISCLOSE THE FOLLOWING INFORM ATION TO A 25
RECIPIENT WHEN EXTENDING A SPECIFIC OFFER FOR A FACTORING TRANSACTION: 26

(1) THE AMOUNT OF THE REC EIVABLES PURCHASE PR ICE PAID TO 27
THE RECIPIENT AND , IF DIFFERENT FROM TH E PURCHASE PRICE , THE 28
DISBURSEMENT AMOUNT AFTER ANY FEE S DEDUCTED OR WITHHE LD AT 29
DISBURSEMENT; 30

(2) THE TOTAL PAYMENT AMOUNT; 31

(3) THE FINANCE CHARGE; 32
14 HOUSE BILL 1007

(4) THE ANNUAL PERCENTAGE RATE OF THE FACTORIN G 1
TRANSACTION, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 2
ABBREVIATION “APR”, CALCULATED ACCORDING TO THE FEDERAL TRUTH IN 3
LENDING ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE 4
ADVANCE, SINGLE PAYMENT TRANSACTION”; 5

(5) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND CHARGES 6
THAT CAN BE AVOIDED BY THE RECIPIENT; AND 7

(6) A DESCRIPTION OF THE R ECEIVABLES PURCHASED AND, IF 8
APPLICABLE, ANY ADDITIONAL COLLA TERAL REQUIREMENTS O R SECURITY 9
INTERESTS. 10

(C) (1) FOR PURPOSES OF THIS SUBSECTION, THE ANNUAL PERCENTAGE 11
RATE SHALL BE CALCUL ATED ACCORDING TO TH E FEDERAL TRUTH IN LENDING 12
ACT AND REGULATION Z, 12 C.F.R. § 1026, APPENDIX J, AS A “SINGLE ADVANCE, 13
SINGLE PAYMENT TRANS ACTION”, REGARDLESS OF WHETHE R FEDERAL LAW OR 14
REGULATION WOULD REQUIRE AN ANNUAL PERCENTAGE RATE TO BE CALCULATED 15
FOR A CERTAIN TRANSACTION. 16

(2) (I) SUBJECT TO SUBPARAGRAP H (II) OF THIS PARAGRAPH , A 17
PROVIDER SHALL USE T HE FOLLOWING INFORMA TION TO CALCULATE TH E 18
ESTIMATED ANNUAL PERCENTAGE RATE IN ACCORDANCE WITH THIS SECTION: 19

1. THE PURCHASE AMOUNT IS THE FINANCING AMOUNT; 20

2. THE PAYMENT AMOUNT IS THE PURCHASE AMOU NT 21
MINUS THE FINANCE CHARGE; AND 22

3. THE TERM OF THE FACTO RING TRANSACTION IS 23
DETERMINED BY THE PAYMENT DUE DATE OF THE RECEIVABLES. 24

(II) A PROVIDER MAY ESTIMAT E THE TERM FOR A FAC TORING 25
TRANSACTION AS THE AVERAGE PAYMENT PERIOD, USING HISTORICAL DATA OVER 26
A PERIOD NOT TO EXCE ED THE PREVIOUS 12 MONTHS, CONCERNING PAYMENT 27
INVOICES PAID BY THE PARTY OWING THE ACCOUNTS RECEIVABLE IN QUESTION. 28

12–1309. 29

(A) IN THIS SECTION , “TOTAL REPAYMENT AMOU NT” MEANS THE 30
DISBURSEMENT AMOUNT OF A COMMERCIAL FINANCI NG TRANSACTION PLUS THE 31
FINANCE CHARGE. 32

HOUSE BILL 1007 15

(B) A PROVIDER MAY EXTEND A SPECIFIC OFFER OF COMMERCIAL 1
FINANCING THAT IS NO T AN OPEN –END FINANCING, A CLOSED–END FINANCING, A 2
SALES–BASED FINANCING, OR A FACTORING TRANSACTION BUT OTHERWISE MEETS 3
THE DEFINITION OF COMMERCIAL FINANCING UNDER THIS SUBTITLE. 4

(C) (1) IF A PROVIDER EXTENDS A SPECIFIC OFFER THA T IS NOT AN 5
OPEN–END FINANCING, A CLOSED–END FINANCING, A SALES–BASED FINANCING, OR 6
A FACTORING TRANSACT ION BUT OTHERWISE ME ETS THE DEFINIT ION OF 7
COMMERCIAL FINANCING UNDER THIS SUBTITLE, THE PROVIDER SHALL DISCLOSE: 8

(I) THE TOTAL AMOUNT OF T HE COMMERCIAL FINANC ING 9
INCLUDING THE DISBUR SEMENT AMOUNT , IF DIFFERENT FROM TH E FINANCING 10
AMOUNT, MINUS ANY FEES DEDUCTED OR WITHHELD AT DISBURSEMENT; 11

(II) THE TOTAL REPAYMENT AMOUNT; 12

(III) THE FINANCE CHARGE; 13

(IV) THE ANNUAL PERCENTAGE RATE OF THE COMMERCI AL 14
FINANCING, USING THE WORDS “ANNUAL PERCENTAGE RA TE” OR THE 15
ABBREVIATION “APR”, EXPRESSED AS A YEARL Y RATE , INCLUSIVE OF ANY FEE S 16
AND FINANCE CHARGES , AND CALCULATED IN AC CORDANCE WITH THE RE LEVANT 17
SECTIONS OF THE FEDERAL TRUTH IN LENDING ACT, REGULATION Z, 12 C.F.R. § 18
1026.22, OR THIS ARTICLE , REGARDLESS OF WHETHE R FEDERAL LAW , THE 19
REGULATION, OR THIS ARTICLE WOULD REQUIRE THE CALCULATION; 20

(V) THE TERM OF THE COMMERCIAL FINANCING; 21

(VI) SUBJECT TO PARAGRAP H (2) OF THIS SUBSECTION , THE 22
PAYMENT FREQUENCY AND AMOUNTS; 23

(VII) A DESCRIPTION OF ANY O THER POTENTIAL FEES AND 24
CHARGES NOT INCLUDED IN THE FINANCE CHARG E, INCLUDING LATE PAYME NT 25
FEES AND RETURNED PAYMENT FEES; AND 26

(VIII) IF APPLICABLE , A DESCRIPT ION OF COLLATERAL 27
REQUIREMENTS OR SECURITY INTERESTS. 28

(2) (I) FOR PAYMENT AMOUNTS T HAT ARE FIXED , A PROVIDER 29
SHALL DISCLOSE: 30

1. THE PAYMENT AMOUNTS AND FREQUENCY; AND 31

16 HOUSE BILL 1007

2. IF THE PAYMENT FREQUE NCY IS OTHER THAN 1
MONTHLY, THE AMOUNT OF THE AVERAGE PROJECTED PAYMENTS PER MONTH. 2

(II) FOR PAYMENT AMOUNTS THAT ARE VARIABLE, A PROVIDER 3
SHALL DISCLOSE: 4

1. THE PAYMENT SCHEDULE OR A DESCRIPTION OF THE 5
METHOD USED TO CALCULATE THE AMOUNTS AND FREQUENCY OF PAYMENTS; AND 6

2. THE AMOUNT OF THE AVE RAGE PROJECTED 7
PAYMENTS PER MONTH. 8

(D) (1) IF A RECIPIENT PAYS O FF OR REFINANCES THE COMMERCIAL 9
FINANCING BEFORE THE END OF THE SCHEDULED REPAYMENT PERIOD , A 10
PROVIDER SHALL DISCL OSE WHETHER THE RECI PIENT WOULD BE REQUI RED TO 11
PAY: 12

(I) ANY FINANCE CHARGES OTHER THAN T HE INTEREST 13
ACCRUED SINCE THE RECIPIENT’S LAST PAYMENT; AND 14

(II) ANY ADDITIONAL FEES N OT INCLUDED IN THE F INANCE 15
CHARGE. 16

(2) IF A RECIPIENT WOULD BE REQUIRED TO PAY A DDITIONAL 17
FINANCE CHARGES OTHER THAN THE INTEREST ACCRUED SINCE THE RECIPIENT’S 18
LAST PAYMENT, A PROVIDER SHALL DIS CLOSE THE PERCENTAGE OF ANY UNPAID 19
PORTION OF THE FINAN CE CHARGE AND MAXIMU M DOLLAR AMOUNT THE 20
RECIPIENT COULD BE REQUIRED TO PAY. 21

12–1310. 22

(A) A PROVIDER MAY REQUIRE A RECIPIENT TO PAY OFF THE BALANCE OF 23
AN EXISTING COMMERCI AL FINANCING TRANSAC TION FROM THE SAME P ROVIDER 24
AS A CONDITION OF OB TAINING A NEW OR REN EWAL COMMERCIAL FINA NCING 25
TRANSACTION. 26

(B) IF A PROVIDER REQUIRE S A RECIPIENT TO PAY OFF A COMMERCIAL 27
FINANCING TRANSACTION BEFORE OBTAINING A NEW OR RENEWAL COMME RCIAL 28
FINANCING TRANSACTION, THE PROVIDER SHALL DISCLOSE: 29

(1) THE AMOUNT OF THE NEW OR RENEWAL COMMERCIAL FINANCING 30
THAT WILL BE USED TO PAY OFF THE PORTION OF THE EXISTING COMM ERCIAL 31
FINANCING THAT CONSISTS OF ANY REQUIRED PREPAYMENT CHARGES; AND 32

HOUSE BILL 1007 17

(2) ANY UNPAID INTEREST T HAT WAS NOT FORGIVEN AT THE TIME 1
THE RECIPIENT ENTERED INTO THE NEW OR RENEWAL COMMERCIAL FINANCING. 2

(C) (1) FOR FINANCING FOR WHICH THE TOTAL REPAYMENT AMOUNT IS 3
CALCULATED AS A FIXE D AMOUNT, THE PREPAYMENT CHA RGE IS EQUAL TO THE 4
ORIGINAL FINANCE CHA RGE MULTIPLIED BY TH E AMOUNT OF THE NEW OR 5
RENEWAL COMMERCIAL FINANCING USED TO PAY OFF THE EXISTING COMMERCIAL 6
FINANCING TRANSACTION AS A PERCENTAGE OF THE TOTAL REPAYMENT AMOUNT, 7
MINUS ANY PORTION OF THE TOTAL REPA YMENT AMOUNT FORGIVE N BY THE 8
PROVIDER AT THE TIME OF PREPAYMENT. 9

(2) IF THE PREPAYMENT CHA RGE IS MORE THAN ZER O, THE 10
PROVIDER SHALL RECOR D THE AMOUNT AS THE ANSWER TO THE FOLLOW ING 11
QUESTION: 12

“DOES THE NEW OR RENEW AL COMMERCIAL FINANC ING TRANSACTION INC LUDE 13
ANY AMOUNT THAT IS U SED TO PAY UNPAID FI NANCE CHARGES OR FEE S, ALSO 14
KNOWN AS DOUBLE DIPPING? YES, (ENTER AMOUNT)”. 15

(D) IF THE DISBURSEMENT A MOUNT OF THE NEW OR RENEWAL 16
COMMERCIAL FINANCING TRANSACTION WILL BE REDUCED TO PAY DOWN ANY 17
UNPAID PORTION OF THE OUTSTANDING BALANCE OF THE EXISTIN G COMMERCIAL 18
FINANCING, THE PROVIDER SHALL D ISCLOSE THE ACTUAL D OLLAR AMOUNT BY 19
WHICH THE DISBURSEMENT AMOUNT WILL BE REDUCED. 20

12–1311. 21

A RECIPIENT SHALL SIGN , MANUALLY OR ELECTRON ICALLY, EACH 22
APPLICABLE DISCLOSURE REQUIRED UNDER THIS SUBTITLE BEFORE A PROVIDER 23
MAY ALLOW THE RECIPI ENT TO PROCEED WITH THE COMMERCIAL FINAN CING 24
APPLICATION. 25

12–1312. 26

(A) (1) NOTHING IN THIS SUBTI TLE MAY BE CONSTRUED TO PREVENT A 27
PROVIDER FROM DISCLO SING ADDITIONAL INFORMATION TO A REC IPIENT 28
REGARDING A COMMERCIAL FINANCING TRANSACTION. 29

(2) IF A PROVIDER PROVIDE S AN ADDITIONAL DISC LOSURE TO A 30
RECIPIENT OTHER THAN WHAT IS REQUIRED BY THIS SUBTITLE, THE ADDITIONAL 31
DISCLOSURE IS NOT CONSIDERED A REQUIRED DISCLOSURE UNDER THIS SUBTITLE. 32

(B) (1) IF ADDITIONAL METRICS OF FINANCING COSTS A RE DISCLOSED 33
OR USED IN THE APPLI CATION PROCESS FOR C OMMERCIAL FINANCING , THE 34
18 HOUSE BILL 1007

ADDITIONAL METRICS M AY NOT BE PRESENTED AS A RATE IF THEY AR E NOT THE 1
ANNUAL INTEREST RATE OR THE ANNUAL PERCENTAGE RATE. 2

(2) THE TERM “INTEREST”, WHEN USED TO DESCRIBE A PERCENTAGE 3
RATE, MAY BE USED ONLY TO DESCRIBE ANNUAL PERCENTAGE RATES, INCLUDING 4
THE ANNUAL INTEREST RATE. 5

(C) IF A PROVIDER STATES A RATE OF FINANCE CH ARGE OR A FINANCING 6
AMOUNT TO A RE CIPIENT DURING THE A PPLICATION PROCESS F OR COMMERCIAL 7
FINANCING, THE PROVIDER SHALL A LSO STATE THE RATE A S AN “ANNUAL 8
PERCENTAGE RATE”, USING THAT TERM OR THE ABBREVIATION “APR”. 9

12–1313. 10

(A) TO CARRY OUT THIS SUB TITLE, THE COMMISSIONER SHALL AD OPT 11
REGULATIONS SUBSTANTIALLY THE SAME AS REGULATIONS ADOPTED BY THE NEW 12
YORK STATE DEPARTMENT OF FINANCIAL SERVICES REGARDING CO MMERCIAL 13
FINANCING. 14

(B) THE COMMISSIONER SHALL AP PROVE THE USE OF COM MERCIAL 15
FINANCING DISCLOSURE FORMS APPROVED FOR U SE IN OTHER STA TES WITH 16
COMMERCIAL FINANCING DISCLOSURE REQUIREMENTS THAT ARE SUBSTANTIALLY 17
SIMILAR TO OR EXCEED THE REQUIREMENTS OF THIS SUBTITLE. 18

12–1314. 19

(A) (1) THE COMMISSIONER SHALL IM POSE A CIVIL PENALTY NOT 20
EXCEEDING: 21

(I) $2,000 FOR EACH VIOLATION OF THIS SUBTITLE; AND 22

(II) $10,000 FOR EACH WILLFUL VIOLATION OF THIS SUBTITLE. 23

(2) THE COMMISSIONER MAY ORDE R ADDITIONAL RELIEF , 24
INCLUDING RESTITUTIO N OR A PERMANENT OR PRELIMINARY INJUNCTI ON ON 25
BEHALF OF A RECIPIENT AFFECTED BY A VIOLATION OF THIS SUBTITLE. 26

(B) IF A COMPLAINT ABOUT A VIOLATION OF THIS SUBTITLE IS FILED WITH 27
THE COMMISSIONER, THE COMMISSIONER MAY INVESTIGATE THE COMPLAINT AND 28
USE ANY OF THE INVES TIGATIVE AND ENFORCE MENT POWERS PROVIDED UNDER 29
TITLE 2, SUBTITLE 1 OF THIS ARTICLE. 30

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 31
October 1, 2026. 32
HOUSE BILL 1007 19