Bill > SB01255

This bill modifies the definitions of "community bank" and "community credit union" for the State Treasurer's community bank and community credit union investment program. Specifically, the bill replaces the existing narrow definition of a community bank—which previously referred only to banks and financial institutions chartered in Connecticut—with a broader definition that includes out-of-state banks as defined in section 36a-2 of Connecticut's statutes. Similarly, the bill replaces the detailed existing definition of a community credit union—which previously specified membership limitations, nonprofit status, and governance requirements—with a simpler definition that encompasses both Connecticut and federal credit unions as defined in section 36a-2. These changes will expand the potential pool of financial institutions that can participate in the state's investment program by removing previous geographic and structural restrictions. The bill is set to take effect on July 1, 2025, providing state agencies and financial institutions time to prepare for the updated definitions.

Business and Industry

Banking Committee (J)

https://www.cga.ct.gov/asp/cgabillstatus/cgabillstatus.asp?selBillType=Bill&bill_num=SB01255&which_year=2025