CT
Connecticut Senate Bill SB01137

Connecticut 2019 Regular Session

Connecticut Senate Bill SB01137 Compare Versions

Only one version of the bill is available at this time.
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55 General Assembly Raised Bill No. 1137
66 January Session, 2019
77 LCO No. 7329
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1010 Referred to Committee on FINANCE, REVENUE AND
1111 BONDING
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1414 Introduced by:
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1919 AN ACT CONCERNING DE POSITS IN LIEU OF TAXES.
2020 Be it enacted by the Senate and House of Representatives in General
2121 Assembly convened:
2222
2323 Section 1. (NEW) (Effective from passage) (a) (1) Each entity that (A) is 1
2424 exempt from paying property tax pursuant to Section 501(c) of the 2
2525 Internal Revenue Code of 1986, or any subsequent corresponding 3
2626 internal revenue code of the United States, as amended from time to 4
2727 time, and (B) (i) owns college or hospital property, as described in 5
2828 subsection (a) of section 12-20a of the general statutes, that is subject to 6
2929 the grants in lieu of taxes program under section 12-18b of the general 7
3030 statutes, or (ii) maintains a pension fund, endowment fund or other 8
3131 significant savings fund or account, shall pay a fee annually to the 9
3232 Treasurer for deposit in the community development account 10
3333 established under subsection (d) of this section. 11
3434 (2) Such fee shall be equal to twenty-five per cent of the amount of 12
3535 the property tax, calculated annually, that the entity would have paid 13
3636 on such real property at the mill rate applicable for each assessment 14
3737 year. Such payment shall be accompanied by a form, prescribed by the 15
3838 Treasurer, that includes the name and address of the entity, the 16
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4545 calculated amount, the amount of the payment and any other 17
4646 information the Treasurer requires for the purpose of this subsection. 18
4747 (3) On and after the date the community development credit union 19
4848 oversight council, established under section 3 of this act, designates 20
4949 community impact zones in accordance with the provisions of said 21
5050 section, any entity paying the fee pursuant to this subsection may 22
5151 specify to the Treasurer the community impact zone within the 23
5252 municipality in which the real property is located to which such fee 24
5353 payment shall be directed. 25
5454 (b) In addition to the entities specified under subsection (a) of this 26
5555 section, each municipality and the state shall pay the fee calculated 27
5656 pursuant to subdivision (2) of subsection (a) of this section, except that 28
5757 the state shall calculate its fee payment based on the average mill rate 29
5858 of all municipalities in the state. 30
5959 (c) Except as specified under subdivision (3) of subsection (a) of this 31
6060 section and subdivision (3) of this subsection, the Treasurer shall 32
6161 annually disburse each fee payment to the community development 33
6262 credit union designated pursuant to section 2 of this act that is located 34
6363 in the distressed municipality, as defined in section 32-9p of the 35
6464 general statutes, within which the real property described under 36
6565 subdivision (1) of subsection (a) of this section is located. 37
6666 (1) If no such credit union has been designated yet for such 38
6767 municipality, the fee under subsection (a) of this section shall not be 39
6868 required to be paid by the entity or municipality. 40
6969 (2) If (A) a designated community development credit union elects 41
7070 to be removed from or is removed from such designation and no 42
7171 replacement has been designated, or (B) such real property is not 43
7272 located within a distressed municipality, the Treasurer, in consultation 44
7373 with the community development credit union oversight council, may 45
7474 (i) disburse fees paid by the entity whose real property is located 46
7575 within such municipality to all community development credit unions 47
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8282 located in community impact zones within another municipality, or (ii) 48
8383 transfer such fees to an evergreen subaccount within the community 49
8484 development account established under subsection (d) of this section. 50
8585 (3) The Treasurer shall disburse annually each fee payment (A) 51
8686 made by a municipality to the community development credit union 52
8787 located within such municipality, and (B) made by the state to all 53
8888 community development credit unions in the state in equal amounts. 54
8989 (d) Each community development credit union that receives fee 55
9090 payments made pursuant to subsection (a) of this section shall 56
9191 administer individual accounts for each entity making such payments 57
9292 and shall invest such payments in a manner determined by such credit 58
9393 union, provided any returns generated by investing such payments 59
9494 shall be distributed annually as follows: (1) One-sixth shall be 60
9595 deposited in the evergreen subaccount within the community 61
9696 development account established under subsection (d) of this section 62
9797 to be continually reinvested; (2) one-third shall be returned to the 63
9898 entity that remitted payments pursuant to subdivision (1) of subsection 64
9999 (a) of this section, provided an entity may elect to reinvest such return 65
100100 with such credit union; and (3) one-half shall be made available for 66
101101 disbursements for eligible programs, services, activities and efforts 67
102102 approved by the community development credit union oversight 68
103103 council. 69
104104 (e) There is established an account to be known as the "community 70
105105 development account" which shall be a separate, nonlapsing account 71
106106 within the General Fund. The account shall contain any moneys 72
107107 required by law to be deposited in the account. Moneys in the account 73
108108 shall be expended by Treasurer, in consultation with the community 74
109109 development credit union oversight council established under section 75
110110 3 of this act, in accordance with the provisions of this section. 76
111111 Sec. 2. (NEW) (Effective from passage) (a) There are established 77
112112 community development credit unions to further the community 78
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119119 restoration and revitalization purposes set forth in this section. 79
120120 (b) (1) Any Connecticut credit union organized under chapter 667 of 80
121121 the general statutes and in compliance with the provisions of said 81
122122 chapter or Connecticut credit union service organization, as defined in 82
123123 section 36a-2 of the general statutes, may apply to the community 83
124124 development credit union oversight council established under section 84
125125 3 of this act to be designated as a community development credit 85
126126 union. 86
127127 (2) To be designated as a community development credit union, a 87
128128 Connecticut credit union or Connecticut credit union service 88
129129 organization shall: 89
130130 (A) Serve low-income and moderate-income people and 90
131131 communities that have limited access to affordable financial services 91
132132 and products, with priority given to credit unions that specialize in (i) 92
133133 providing home mortgages or small business loans to members with 93
134134 imperfect, limited or no credit history, (ii) providing financial 94
135135 education and counseling to its members, and (iii) offering products, 95
136136 services and support at a low or reasonable cost to its members; and 96
137137 (B) Agree to focus its activities and efforts to support the purposes 97
138138 set forth in section 2 of this act. 98
139139 (c) Each community development credit union shall: 99
140140 (1) Submit its governance structure to the community development 100
141141 credit union oversight council for review; 101
142142 (2) If applicable and necessary, expand its field of membership in 102
143143 accordance with section 36a-438a of the general statutes, to allow all 103
144144 residents of all community impact zones within the municipality in 104
145145 which such credit union is located, to be members of such credit union; 105
146146 (3) Offer or agree to offer free or low-cost basic checking and 106
147147 savings account services to all residents of the community impact zone 107
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154154 in which it is located; 108
155155 (4) Agree to establish or relocate a location in a community impact 109
156156 zone after such zones are designated pursuant to section 3 of this act. 110
157157 Such credit union shall not be precluded from establishing or having 111
158158 locations elsewhere in the state or establishing or having multiple 112
159159 locations within the municipality in which the community impact zone 113
160160 is located; and 114
161161 (5) Develop and issue social impact bonds to support or supplement 115
162162 the community development efforts of such credit union. Such bonds 116
163163 shall be designed to maximize tax benefits to investors where the 117
164164 community impact zone in which such credit union is located aligns 118
165165 with federal qualified opportunity zones. 119
166166 (d) The goals and purposes of each community development credit 120
167167 union shall be as follows: 121
168168 (1) To provide programs, services and assistance or issue grants to 122
169169 support community reinvestment strategies in the community impact 123
170170 zone in which such credit union is located, including, but not limited 124
171171 to, the following, in order of priority: 125
172172 (A) Encouraging early childhood initiatives through the provision, 126
173173 directly or in collaboration with other entities, of free or low-cost early 127
174174 childhood education services to families that reside within the 128
175175 community impact zone, without regard to family income level. Such 129
176176 services shall include kindergarten preparedness and kindergarten 130
177177 readiness assessments. The credit union may expand such services 131
178178 beyond the community impact zone but within the municipality to 132
179179 areas with poverty levels above the municipal average; 133
180180 (B) Increasing achievement at public elementary and middle schools 134
181181 located in the community impact zone. The credit union shall 135
182182 coordinate with school officials of such schools to submit grant 136
183183 applications to the community development credit union oversight 137
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190190 council to supplement per-student funding for such schools to match 138
191191 or approach the highest levels of per-student funding at any 139
192192 elementary or middle school in the state. Schools that receive such 140
193193 grants shall (i) set goals to achieve scores in the top percentiles on the 141
194194 state-wide mastery examination under section 10-14n of the general 142
195195 statutes. The council shall set specific target goals for each school that 143
196196 receives a grant pursuant to this subparagraph, and (ii) guarantee that 144
197197 a student residing in the community impact zone will be able to attend 145
198198 that specific school; 146
199199 (C) Rebuilding community assets through: 147
200200 (i) The construction, renovation or repair of neighborhood 148
201201 structures or assets of economic or other community significance, 149
202202 including, but not limited to, playgrounds, sidewalks, parks, 150
203203 community centers, senior centers, public libraries, urban gardens and 151
204204 green spaces. Projects that receive funding under this subparagraph 152
205205 shall be owned by the federal, state or municipal government, the 153
206206 community development credit union or a resident of the municipality 154
207207 in which such structure or asset is located. The credit union shall seek 155
208208 to train residents of the community impact zone to perform some of 156
209209 the work such projects require, directly or indirectly through 157
210210 partnerships with existing technical education and apprenticeship 158
211211 programs and with other entities; and 159
212212 (ii) The retention, sale or rental of such projects after completion, 160
213213 provided any sale shall be to a resident of the community impact zone 161
214214 only. The community development credit union may d evelop a 162
215215 cooperative model for owning and renting such projects; 163
216216 (D) Increasing owner-occupancy of residential buildings through: 164
217217 (i) Tracking and undertaking efforts to increase the percentage of 165
218218 owner-occupied residential buildings in the community impact zone. 166
219219 The credit union shall set five-year target percentages and shall 167
220220 periodically evaluate and revise such target amounts; 168
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227227 (ii) The restoration and repair of multifamily rental buildings 169
228228 located in the community impact zone to convert such buildings into 170
229229 owner-occupied residential buildings or multifamily cooperative 171
230230 buildings with at least one unit to be a rental unit. Projects that receive 172
231231 funding under this subparagraph shall be owned by the community 173
232232 development credit union or a resident of the municipality in which 174
233233 such project is located. A multifamily rental building that is not owned 175
234234 by such credit union or resident may be considered for funding under 176
235235 this subparagraph, provided the owner of such building agrees, in 177
236236 writing, to terms set forth by the credit union that further the purposes 178
237237 of this section. The credit union may promote participation in existing 179
238238 state and housing programs to encourage owner occupancy; and 180
239239 (iii) The retention, sale or rental of such buildings after completion, 181
240240 provided any sale shall be to a resident of the community impact zone 182
241241 only. The community development credit union may develop a 183
242242 cooperative model for owning and renting such buildings; 184
243243 (E) Supporting pathways to home ownership through the offering 185
244244 of home buyer education and financial literacy programs in 186
245245 partnership with existing programs. Each community development 187
246246 credit union may develop and offer subsidized or incentivized 188
247247 financial products for individuals who participate in such programs; 189
248248 (F) Creating pipelines to employment for residents of a community 190
249249 impact zone through: 191
250250 (i) The implementation of or participation in community work-192
251251 based training programs, in consultation or coordination with other 193
252252 organizations, including, but not limited to, the Workforce Investment 194
253253 Boards. Such programs shall provide preapprenticeship or 195
254254 apprenticeship opportunities by providing instruction or training to 196
255255 increase literacy, mathematics and other technical, prevocational or 197
256256 vocational skills and connecting workforce, economic development 198
257257 and education systems with businesses and other stakeholders in the 199
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264264 community impact zone. All such efforts undertaken by a community 200
265265 development credit union shall focus on the residents of the 201
266266 community impact zone in which such credit union is located and on 202
267267 businesses offering or carrying out training programs, in order of 203
268268 priority, (I) within the community impact zone, (II) within the 204
269269 municipality in which the community impact zone is located, or (III) 205
270270 without the municipality; and 206
271271 (ii) The placement of residents of the community impact zone with 207
272272 businesses offering employment or on-the-job training that are, in 208
273273 order of priority, (I) within the community impact zone, (II) within the 209
274274 municipality in which the community impact zone is located, or (III) 210
275275 without the municipality only after the opportunities under subclauses 211
276276 (I) and (II) of this clause have been exhausted; 212
277277 (G) Expanding access to programs at existing community centers or 213
278278 senior centers that serve all residents of the community impact zone, 214
279279 regardless of age, or converting such existing centers to centers that 215
280280 serve all residents of the community impact zone, regardless of age; 216
281281 and 217
282282 (H) Providing municipal residents with low-cost transportation 218
283283 options by developing or supporting transportation alternatives within 219
284284 and between municipalities for travel to and from employment, home, 220
285285 school, retail stores and entertainment venues. 221
286286 (2) If a community development credit union has insufficient funds 222
287287 to execute to a high level of quality all of the strategies set forth in 223
288288 subdivision (1) of this subsection, the credit union shall pursue each 224
289289 strategy in the order listed in said subdivision, with an emphasis on 225
290290 achieving a high level of quality in the execution and implementation 226
291291 of such strategy before undertaking the next strategy listed. 227
292292 (e) A community development credit union may: 228
293293 (1) Develop low-cost or subsidized financial products and services 229
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300300 to support the community development goals set forth in subsection 230
301301 (d) of this section and apply to the community development credit 231
302302 union oversight council for funding for such purpose; 232
303303 (2) Collaborate with organizations and businesses to help finance or 233
304304 facilitate investments in real property or community structures and 234
305305 assets pursuant to subsection (d) of this section; 235
306306 (3) Acquire real property described in subsection (d) of this section; 236
307307 (4) Operate as or establish a subsidiary that operates as a contractor 237
308308 or subcontractor, provided such credit union or subsidiary complies 238
309309 with all applicable licensing and registration requirements under the 239
310310 general statutes; and 240
311311 (5) Partner or contract with contractors or subcontractors to carry 241
312312 out projects and related work for the purposes set forth in subsection 242
313313 (d) of this section, provided the credit union shall give primary 243
314314 priority to a contractor or subcontractor located in the community 244
315315 impact zone in which the credit union is located and secondary 245
316316 priority to a contractor or subcontractor located in the municipality in 246
317317 which the credit union is located. 247
318318 (f) Each community development credit union shall submit a 248
319319 financial report to the community development credit union oversight 249
320320 council, on such frequency as the council shall require but at least 250
321321 annually and include such information as the council requires. 251
322322 (g) (1) A community development credit union may request that its 252
323323 designation be removed. The community development credit union 253
324324 oversight council may grant such request, provided the council 254
325325 identifies another Connecticut credit union or Connecticut credit union 255
326326 service organization to replace such credit union. 256
327327 (2) The council may remove the designation of any community 257
328328 development credit union that the council determines is unable to or is 258
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335335 deficient in carrying out the purposes of this section, provided the 259
336336 credit union has been afforded an opportunity to address and improve 260
337337 any deficiencies noted by the council. 261
338338 Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 262
339339 "municipality" means any town, city or borough, consolidated town 263
340340 and city or consolidated town and borough and "distressed 264
341341 municipality" has the same meaning as provided in section 32-9p of 265
342342 the general statutes. 266
343343 (b) (1) There is established a community development credit union 267
344344 oversight council, which shall be part of the Legislative Department. 268
345345 The council shall consist of the following members: (A) The Treasurer; 269
346346 (B) the Commissioner of Economic and Community Development; (C) 270
347347 the executive director of the Commission on Equity and Opportunity, 271
348348 established pursuant to section 2-127 of the general statutes; and (D) 272
349349 four members appointed by the Governor. In making the appointment 273
350350 under subparagraph (D) of this subdivision, the Governor shall seek to 274
351351 appoint individuals who have broad community knowledge and 275
352352 experience with communities within the eligible census tracts selected 276
353353 by the Secretary of the Office of Policy and Management pursuant to 277
354354 subsection (e) of this section and are reflective of the ethnic, gender 278
355355 and economic diversity of such communities. All appointments to the 279
356356 council shall be made on or after August 1, 2019. 280
357357 (2) The Treasurer and the Commissioner of Economic and 281
358358 Community Development shall serve as cochairpersons of the council 282
359359 and shall jointly schedule the first meeting of the council, which shall 283
360360 be held not later than September 1, 2019. On and after January 1, 2020, 284
361361 the council shall meet not fewer than six times each year. A majority of 285
362362 the council shall constitute a quorum for the transaction of any 286
363363 business. 287
364364 (3) Any vacancy shall be filled by the appointing authority. Any 288
365365 vacancy occurring other than by expiration of term shall be filled for 289
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372372 the balance of the unexpired term. 290
373373 (4) The members of the council shall serve without compensation, 291
374374 but shall, within the limits of available funds, be reimbursed for 292
375375 expenses necessarily incurred in the performance of their duties. 293
376376 (5) The administrative staff of the joint standing committee of the 294
377377 General Assembly having cognizance of matters relating to economic 295
378378 development shall serve as administrative staff of the council. 296
379379 (c) The council shall: 297
380380 (1) Establish criteria for designation as a community development 298
381381 credit union and community impact zone and designate such credit 299
382382 unions and zones in accordance with the provisions of this section and 300
383383 section 2 of this act; 301
384384 (2) Approve the programs, services and activities of and efforts 302
385385 undertaken by community development credit unions to further the 303
386386 purposes of section 2 of this act; 304
387387 (3) Oversee, support and coordinate the programs, services and 305
388388 activities of and efforts undertaken by community development credit 306
389389 unions under section 2 of this act, within and across municipalities and 307
390390 with other relevant state agencies, entities and initiatives; 308
391391 (4) Advise community development credit unions, state agencies 309
392392 and other entities with respect to the core purposes of community 310
393393 development credit unions; 311
394394 (5) Review the disbursement of funds to and contracts entered into 312
395395 by community development credit unions to evaluate the impact and 313
396396 effectiveness of such disbursements and ensure that decisions made by 314
397397 such credit unions regarding services provided or grants or other 315
398398 financial instruments issued are based solely on the purposes set forth 316
399399 in section 2 of this act; 317
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406406 (6) Review the reports submitted to the council by community 318
407407 development credit unions; 319
408408 (7) Develop procedures by which community development credit 320
409409 unions shall invest the fee payments they receive in community 321
410410 development strategies, as set forth in section 2 of this act, in the 322
411411 community impact zones within the municipalities in which such 323
412412 credit union is located; and 324
413413 (8) Do all things necessary to carry out its duties and responsibilities 325
414414 under this section. 326
415415 (d) The council shall designate community development credit 327
416416 unions from among applicants that fulfill the requirements set forth in 328
417417 section 2 of this act. The council may designate only one community 329
418418 development credit union for each municipality. 330
419419 (e) The Secretary of the Office of Policy and Management shall select 331
420420 eligible census tracts and the council shall designate community 332
421421 impact zones in accordance with the provisions of this subsection. 333
422422 (1) The secretary shall select census tracts within distressed 334
423423 municipalities that are eligible to have a community impact zone or 335
424424 zones designated within such tract. The secretary shall consider, but 336
425425 need not be limited to, the following metrics for each census tract: (A) 337
426426 The educational level attained by the population, specifically the 338
427427 percentage of the population attaining an associate degree or a 339
428428 bachelor's degree; (B) the most recent third grade scores on the state-340
429429 wide mastery examination under section 10-14n of the general statutes 341
430430 for reading; (C) the most recent third grade scores on the state-wide 342
431431 mastery examination under section 10-14n of the general statutes for 343
432432 mathematics; (D) the unemployment rate; (E) the state of the local 344
433433 economy, employment availability and access and diversity of jobs; (F) 345
434434 the percentage of the population receiving public assistance; (G) the 346
435435 percentage of the population below the federal poverty level; (H) the 347
436436 rate of home ownership; (I) the percentage of vacant housing; and (J) 348
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443443 crime rates. 349
444444 (2) Not later than August 1, 2019, the secretary shall release the 350
445445 eligible census tracts based on those that demonstrate the greatest 351
446446 socio-economic need as indicated by subparagraphs (A) to (J), 352
447447 inclusive, of subdivision (1) of this subsection and the criteria for an 353
448448 area within such tract to be designated as a community impact zone. 354
449449 Such criteria shall take into consideration the goals, purposes and 355
450450 requirements set forth in section 2 of this act and may give weight to 356
451451 one or more of the following: (A) The existence of a public elementary 357
452452 school within the area; (B) the existence of an early childhood center 358
453453 within the area; (C) the existence of a community center serving 359
454454 children or seniors, or both, within the area; (D) the existence of a local 360
455455 community organization comprised of residents and leaders within the 361
456456 area, which organization's role is complementary to the goals, 362
457457 purposes and requirements set forth in section 2 of this act; (E) the 363
458458 proximity of the area to existing or planned public transportation; and 364
459459 (F) existing access to an asset-based housing organization that focuses 365
460460 on home ownership and financial literacy. 366
461461 (3) Not later than June 1, 2020, each community development credit 367
462462 union shall submit a proposal to the council for not more than two 368
463463 geographically distinct areas within an eligible census tract in which 369
464464 the credit union is located to be designated as a community impact 370
465465 zone. 371
466466 (4) Not later than August 1, 2020, the council shall announce its 372
467467 selections for designated community impact zones. The council may 373
468468 designate one community impact zone for a municipality with a 374
469469 population of one hundred thousand or less and two community 375
470470 impact zones for a municipality with a population of greater than one 376
471471 hundred thousand. If the council rejects a proposal or does not 377
472472 designate an area that a community development credit union 378
473473 proposed, the council may allow such credit union to resubmit a 379
474474 proposal if a community impact zone has not been designated as set 380
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481481 forth in this subdivision. 381
482482 (5) Not later than February 1, 2021, or as soon as practicable 382
483483 following the designations of community impact zones, each 383
484484 community development credit union shall establish an office or 384
485485 relocate its office within such zone. 385
486486 (f) The council shall develop a proposal to allow social impact bonds 386
487487 to be issued by the state to support public schools located in 387
488488 community impact zones. Not later than February 1, 2020, the 388
489489 Secretary of the Office of Policy and Management shall submit a 389
490490 report, in accordance with the provisions of section 11-4a of the general 390
491491 statutes, to the General Assembly, setting forth the proposal and 391
492492 including recommendations on ways to leverage the federal qualified 392
493493 opportunity zones program to support such public schools. 393
494494 (g) (1) The council may cause to have conducted an external, 394
495495 independent audit of any community development credit union. 395
496496 (2) The council may request the Auditors of Public Accounts to 396
497497 perform, and said auditors shall perform, audits and other related 397
498498 evaluations to facilitate the council's responsibilities established under 398
499499 this section. 399
500500 (h) Not later than February 1, 2022, and annually thereafter, the 400
501501 council shall submit a report to the Governor and to the General 401
502502 Assembly, in accordance with the provisions of section 11-4a of the 402
503503 general statutes. Such report shall include, but not be limited to, a list 403
504504 of the community development credit unions and community impact 404
505505 zones designated to date, a summary of the programs, services, 405
506506 activities and efforts undertaken by such credit unions pursuant to 406
507507 section 2 of this act and the disbursements made from the community 407
508508 development account established under subsection (d)of section 1 of 408
509509 this act to support such programs, services, activities and efforts. 409
510510 Sec. 4. Section 36a-455a of the general statutes is repealed and the 410
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517517 following is substituted in lieu thereof (Effective from passage): 411
518518 A Connecticut credit union may: 412
519519 (1) Transact a general credit union business and exercise by its 413
520520 governing board or duly authorized members of senior management, 414
521521 subject to applicable law, all such incidental powers as are consistent 415
522522 with its purposes. The express powers authorized for a Connecticut 416
523523 credit union under this section do not preclude the existence of 417
524524 additional powers deemed to be incidental to the transaction of a 418
525525 general credit union business pursuant to this subdivision; 419
526526 (2) (A) Issue shares to its members and receive payments on shares 420
527527 from its members and from those nonmembers specified in subsection 421
528528 (e) of section 36a-456a, subject to the provisions of sections 36a-290 to 422
529529 36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 423
530530 receive deposits of members and nonmembers subject to provisions of 424
531531 sections 36a-456a and 36a-456b, (C) reduce the amount of its member 425
532532 and nonmember shares and deposits, (D) expel members and cancel 426
533533 shares in accordance with section 36a-439a, and (E) provide check 427
534534 cashing and wire and electronic transfer services to nonmembers who 428
535535 are within such credit union's field of membership; 429
536536 (3) Make and use its best efforts to make secured and unsecured 430
537537 loans and other extensions of credit to its members in accordance with 431
538538 section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 432
539539 (4) Invest its funds in accordance with section 36a-459a; 433
540540 (5) Declare and pay dividends in accordance with sections 36a-441a 434
541541 and 36a-456c, and pay interest refunds to borrowers; 435
542542 (6) Act as a finder or agent for the sale of insurance and fixed and 436
543543 variable rate annuities directly, sell insurance and such annuities 437
544544 indirectly through a Connecticut credit union service organization, or 438
545545 enter into arrangements with third-party marketing organizations for 439
546546 Raised Bill No. 1137
547547
548548
549549
550550 LCO No. 7329 16 of 20
551551
552552 the sale by such third-party marketing organizations of insurance or 440
553553 such annuities on the premises of the Connecticut credit union or to 441
554554 members of the Connecticut credit union, provided: (A) Such 442
555555 insurance and annuities are issued or purchased by or from an 443
556556 insurance company licensed in accordance with section 38a-41; and (B) 444
557557 the Connecticut credit union, Connecticut credit union service 445
558558 organization or third-party marketing organization, and any officer 446
559559 and employee thereof, shall be licensed as required by section 38a-769 447
560560 before engaging in any of the activities authorized by this subdivision. 448
561561 As used in this subdivision, "annuities" and "insurance" have the same 449
562562 meanings as set forth in section 38a-41, except that "insurance" does 450
563563 not include title insurance. The provisions of this subdivision do not 451
564564 authorize a Connecticut credit union or Connecticut credit union 452
565565 service organization to underwrite insurance or annuities; 453
566566 (7) Borrow money to an amount not exceeding fifty per cent of the 454
567567 total assets of the Connecticut credit union provided the credit union 455
568568 shall give prior notice to the commissioner in writing of its intention to 456
569569 borrow amounts in excess of thirty-five per cent of its total assets; 457
570570 (8) Act as fiscal agent for the federal government, this state or any 458
571571 agency or political subdivision thereof; 459
572572 (9) Provide loan processing, loan servicing, member check and 460
573573 money order cashing services, disbursement of share withdrawals and 461
574574 loan proceeds, money orders, internal audits, automated teller 462
575575 machine services, ACH and wire transfer services, prepaid debit cards, 463
576576 payroll cards, digital wallet services, coin and currency services, 464
577577 remote deposit capture services, electronic banking and other similar 465
578578 services to other Connecticut credit unions, federal credit unions, 466
579579 federally insured financial institutions and out-of-state credit unions; 467
580580 (10) Provide finder services to its members, including the offering of 468
581581 third party products and services through the sale of advertising space 469
582582 on its web site, account statements and receipts, and the sale of 470
583583 Raised Bill No. 1137
584584
585585
586586
587587 LCO No. 7329 17 of 20
588588
589589 statistical or consumer financial information to outside vendors in 471
590590 accordance with sections 36a-40 to 36a-45, inclusive, in order to 472
591591 facilitate the sale of such products to the members of such Connecticut 473
592592 credit union; 474
593593 (11) With the prior approval of the commissioner, exercise fiduciary 475
594594 powers; 476
595595 (12) Maintain and rent safe deposit boxes within suitably 477
596596 constructed vaults, provided the Connecticut credit union has 478
597597 adequate insurance coverage for losses related to such rental; 479
598598 (13) Provide certification services, including notary services, 480
599599 signature guaranties, certification of electronic signatures and share 481
600600 draft certifications; 482
601601 (14) Act as agent (A) in the collection of taxes for any qualified 483
602602 treasurer of any taxing district or qualified collector of taxes, or (B) for 484
603603 any electric distribution, gas, water or telephone company operating 485
604604 within this state in receiving moneys due such company for utility 486
605605 services furnished by it; 487
606606 (15) Issue and sell securities which (A) are guaranteed by the 488
607607 Federal National Mortgage Association or any other agency or 489
608608 instrumentality authorized by state or federal law to create a 490
609609 secondary market with respect to extensions of credit of the type 491
610610 originated by the Connecticut credit union, or (B) subject to the 492
611611 approval of the commissioner, relate to extensions of credit originated 493
612612 by the Connecticut credit union and are guaranteed or insured by a 494
613613 financial guaranty insurance company or comparable private entity; 495
614614 (16) Establish a charitable fund, either in the form of a charitable 496
615615 trust or a nonprofit corporation to assist in making charitable 497
616616 contributions, provided (A) the trust or nonprofit corporation is 498
617617 exempt from federal income taxation and may accept charitable 499
618618 contributions under Section 501 of the Internal Revenue Code of 1986, 500
619619 Raised Bill No. 1137
620620
621621
622622
623623 LCO No. 7329 18 of 20
624624
625625 or any subsequent corresponding internal revenue code of the United 501
626626 States, as from time to time amended, (B) the trust or nonprofit 502
627627 corporation's operations are disclosed fully to the commissioner upon 503
628628 request, and (C) the trust department of the credit union or one or 504
629629 more directors or members of senior management of the credit union 505
630630 act as trustees or directors of the fund; 506
631631 (17) In the discretion of a majority of its governing board, make 507
632632 contributions or gifts to or for the use of any corporation, trust or 508
633633 community chest, fund or foundation created or organized under the 509
634634 laws of the United States or of this state and organized and operated 510
635635 exclusively for charitable, educational or public welfare purposes, or of 511
636636 any hospital which is located in this state and which is exempt from 512
637637 federal income taxes and to which contributions are deductible under 513
638638 Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 514
639639 corresponding internal revenue code of the United States, as from time 515
640640 to time amended; 516
641641 (18) Subject to the provisions of section 36a-455b, sell, pledge or 517
642642 assign any or all of its outstanding extensions of credit to any other 518
643643 lending institution, credit union service organization or quasi-519
644644 governmental entity and any government-sponsored enterprise, and 520
645645 act as collecting, remitting and servicing agent in connection with any 521
646646 such extension of credit and charge for its acts as agent. Any such 522
647647 credit union may purchase the minimum amount of capital stock of 523
648648 such entity or enterprise if required by that entity or enterprise to be 524
649649 purchased in connection with the sale, pledge or assignment of 525
650650 extensions of credit to that entity or enterprise and may hold and 526
651651 dispose of such stock, provided that with respect to purchases of stock 527
652652 of a credit union service organization, the Connecticut credit union 528
653653 shall not exceed the limitations of section 36a-459a. A Connecticut 529
654654 credit union may purchase one or more outstanding extensions of 530
655655 credit from any other lending institution and any federally-recognized 531
656656 Native American tribe, provided there exists a formal written 532
657657 agreement with tribal government to permit the credit union to service 533
658658 Raised Bill No. 1137
659659
660660
661661
662662 LCO No. 7329 19 of 20
663663
664664 and collect on such extensions of credit; 534
665665 (19) Subject to the provisions of section 36a-455b, sell a participating 535
666666 interest in any or all of its outstanding extensions of credit to and 536
667667 purchase a participating interest in any or all of the outstanding 537
668668 extensions of credit of any financial institution or credit union service 538
669669 organization pursuant to an appropriate written participation and 539
670670 servicing agreement to be signed by all parties involved in such 540
671671 transaction; 541
672672 (20) With the approval of the commissioner, join the Federal Home 542
673673 Loan Bank System and borrow funds as provided under federal law; 543
674674 (21) Subject to the provisions of section 36a-455b, sell all or part of 544
675675 its assets, other than extensions of credit, to other lending institutions, 545
676676 purchase all or part of the assets, other than extensions of credit, of 546
677677 other lending institutions, and assume all or part of the shares and the 547
678678 liabilities of any other credit union or out-of-state credit union; 548
679679 (22) With the prior written approval of the commissioner, engage in 549
680680 closely related activities, unless the commissioner determines that any 550
681681 such activity shall be conducted by a credit union service organization 551
682682 of the Connecticut credit union, utilizing such organizational, 552
683683 structural or other safeguards as the commissioner may require, in 553
684684 order to protect the Connecticut credit union from exposure to loss. As 554
685685 used in this subdivision, "closely related activities" means those 555
686686 activities that are closely related, convenient and necessary to the 556
687687 business of a Connecticut credit union, are reasonably related to the 557
688688 operation of a Connecticut credit union or are financial in nature 558
689689 including, but not limited to, business and professional services, data 559
690690 processing, courier and messenger services, credit-related activities, 560
691691 consumer services, services related to real estate, financial consulting, 561
692692 tax planning and preparation, community development activities, or 562
693693 any activities reasonably related to such activities; 563
694694 (23) Engage in any activity that a federal credit union or out-of-state 564
695695 Raised Bill No. 1137
696696
697697
698698
699699 LCO No. 7329 20 of 20
700700
701701 credit union may be authorized to engage in under state or federal law, 565
702702 provided the Connecticut credit union file with the commissioner prior 566
703703 written notice of its intention to engage in such activity. Such notice 567
704704 shall include a description of the activity, a description of the financial 568
705705 impact of the activity on the Connecticut credit union, citation of the 569
706706 legal authority to engage in the activity under state or federal law, a 570
707707 description of any limitations or restrictions imposed on such activity 571
708708 under state or federal law, and any other information that the 572
709709 commissioner may require. The Connecticut credit union may engage 573
710710 in any such activity unless the commissioner disapproves such activity 574
711711 not later than thirty days after the notice is filed. The commissioner 575
712712 may adopt regulations in accordance with chapter 54 to ensure that 576
713713 any such activity is conducted in a safe and sound manner with 577
714714 adequate consumer protections. The provisions of this subdivision do 578
715715 not authorize a Connecticut credit union or a Connecticut credit union 579
716716 service organization to sell title insurance; 580
717717 (24) (A) If designated as a community development credit union in 581
718718 accordance with the provisions of section 2 of this act, engage in any 582
719719 activity authorized for a community development credit union under 583
720720 said section, and (B) issue social impact bonds in accordance with 584
721721 subdivision (5) of subsection (c) of section 2 of this act. 585
722722 This act shall take effect as follows and shall amend the following
723723 sections:
724724
725725 Section 1 from passage New section
726726 Sec. 2 from passage New section
727727 Sec. 3 from passage New section
728728 Sec. 4 from passage 36a-455a
729729
730730 Statement of Purpose:
731731 To use deposits in lieu of taxes to implement certain community
732732 restoration and revitalization efforts.
733733
734734 [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
735735 except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
736736 not underlined.]
737737