Bill > SB01255

This bill modifies the definitions of "community bank" and "community credit union" within the state's existing investment program established by the State Treasurer. Specifically, the bill replaces the current narrow definition of a community bank—which previously referred only to banks and financial institutions chartered within Connecticut—with a broader definition that includes out-of-state banks as defined in section 36a-2 of state statutes. Similarly, the bill replaces the detailed description of community credit unions (which previously specified characteristics like nonprofit status, membership limitations, and governance structure) with a simplified definition that encompasses both Connecticut and federal credit unions as defined in section 36a-2. These changes will expand the pool of financial institutions eligible to participate in the community bank and community credit union investment program, potentially increasing opportunities for local and regional financial institutions to access state investment resources. The bill is set to take effect on July 1, 2025, providing ample time for financial institutions and state agencies 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