Connecticut House Bill HB05970

Connecticut 2019 Regular Session

• Introduced: 1/24/19
• Refer: 1/24/19

Caption

An Act Establishing A State Of Connecticut Bank.

Impact

The establishment of a State Bank could have significant implications for the banking landscape in Connecticut. By serving as a backing for community banks, the state bank might provide essential funding and resources that are currently lacking, particularly for small businesses and underserved communities. The bill's advocates believe that it could enhance the state's financial infrastructure and lead to more equitable distribution of resources, effectively addressing economic disparities across different regions.

Voting

The voting history shows that the bill garnered unanimous support during a recent session held on February 5, 2019, with all 15 voting members in favor and none opposing. This exceptional level of support may indicate a strong bipartisan consensus on the importance of the proposed state bank and its implications for enhancing local economic conditions.

Summary

House Bill 05970 aims to establish a State of Connecticut Bank designed to bolster community banks and cater to the economic development needs of residents and businesses in the state. The bill seeks to amend Title 36a of the general statutes to create this state-run banking institution, with a focus on supporting local economic growth and financial accessibility. The proposal reflects a growing trend among states to consider public banking as a solution to local financial concerns.

Contention

Despite its potential benefits, the proposal has sparked debate among legislators and stakeholders. Proponents argue that a state bank could reduce reliance on private banking institutions that may prioritize profits over community needs. However, skeptics are concerned about the risks associated with publicly run financial institutions, including fiscal accountability and the potential for mismanagement. There are tangible concerns about how the bank will be funded and the extent to which it will operate independently from the political climate.