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General Assembly Raised Bill No. 1137
January Session, 2019
LCO No. 7329
Referred to Committee on FINANCE, REVENUE AND
BONDING
Introduced by:
(FIN)
AN ACT CONCERNING DE POSITS IN LIEU OF TAXES.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. (NEW) (Effective from passage) (a) (1) Each entity that (A) is 1
exempt from paying property tax pursuant to Section 501(c) of the 2
Internal Revenue Code of 1986, or any subsequent corresponding 3
internal revenue code of the United States, as amended from time to 4
time, and (B) (i) owns college or hospital property, as described in 5
subsection (a) of section 12-20a of the general statutes, that is subject to 6
the grants in lieu of taxes program under section 12-18b of the general 7
statutes, or (ii) maintains a pension fund, endowment fund or other 8
significant savings fund or account, shall pay a fee annually to the 9
Treasurer for deposit in the community development account 10
established under subsection (d) of this section. 11
(2) Such fee shall be equal to twenty-five per cent of the amount of 12
the property tax, calculated annually, that the entity would have paid 13
on such real property at the mill rate applicable for each assessment 14
year. Such payment shall be accompanied by a form, prescribed by the 15
Treasurer, that includes the name and address of the entity, the 16
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calculated amount, the amount of the payment and any other 17
information the Treasurer requires for the purpose of this subsection. 18
(3) On and after the date the community development credit union 19
oversight council, established under section 3 of this act, designates 20
community impact zones in accordance with the provisions of said 21
section, any entity paying the fee pursuant to this subsection may 22
specify to the Treasurer the community impact zone within the 23
municipality in which the real property is located to which such fee 24
payment shall be directed. 25
(b) In addition to the entities specified under subsection (a) of this 26
section, each municipality and the state shall pay the fee calculated 27
pursuant to subdivision (2) of subsection (a) of this section, except that 28
the state shall calculate its fee payment based on the average mill rate 29
of all municipalities in the state. 30
(c) Except as specified under subdivision (3) of subsection (a) of this 31
section and subdivision (3) of this subsection, the Treasurer shall 32
annually disburse each fee payment to the community development 33
credit union designated pursuant to section 2 of this act that is located 34
in the distressed municipality, as defined in section 32-9p of the 35
general statutes, within which the real property described under 36
subdivision (1) of subsection (a) of this section is located. 37
(1) If no such credit union has been designated yet for such 38
municipality, the fee under subsection (a) of this section shall not be 39
required to be paid by the entity or municipality. 40
(2) If (A) a designated community development credit union elects 41
to be removed from or is removed from such designation and no 42
replacement has been designated, or (B) such real property is not 43
located within a distressed municipality, the Treasurer, in consultation 44
with the community development credit union oversight council, may 45
(i) disburse fees paid by the entity whose real property is located 46
within such municipality to all community development credit unions 47
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located in community impact zones within another municipality, or (ii) 48
transfer such fees to an evergreen subaccount within the community 49
development account established under subsection (d) of this section. 50
(3) The Treasurer shall disburse annually each fee payment (A) 51
made by a municipality to the community development credit union 52
located within such municipality, and (B) made by the state to all 53
community development credit unions in the state in equal amounts. 54
(d) Each community development credit union that receives fee 55
payments made pursuant to subsection (a) of this section shall 56
administer individual accounts for each entity making such payments 57
and shall invest such payments in a manner determined by such credit 58
union, provided any returns generated by investing such payments 59
shall be distributed annually as follows: (1) One-sixth shall be 60
deposited in the evergreen subaccount within the community 61
development account established under subsection (d) of this section 62
to be continually reinvested; (2) one-third shall be returned to the 63
entity that remitted payments pursuant to subdivision (1) of subsection 64
(a) of this section, provided an entity may elect to reinvest such return 65
with such credit union; and (3) one-half shall be made available for 66
disbursements for eligible programs, services, activities and efforts 67
approved by the community development credit union oversight 68
council. 69
(e) There is established an account to be known as the "community 70
development account" which shall be a separate, nonlapsing account 71
within the General Fund. The account shall contain any moneys 72
required by law to be deposited in the account. Moneys in the account 73
shall be expended by Treasurer, in consultation with the community 74
development credit union oversight council established under section 75
3 of this act, in accordance with the provisions of this section. 76
Sec. 2. (NEW) (Effective from passage) (a) There are established 77
community development credit unions to further the community 78
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restoration and revitalization purposes set forth in this section. 79
(b) (1) Any Connecticut credit union organized under chapter 667 of 80
the general statutes and in compliance with the provisions of said 81
chapter or Connecticut credit union service organization, as defined in 82
section 36a-2 of the general statutes, may apply to the community 83
development credit union oversight council established under section 84
3 of this act to be designated as a community development credit 85
union. 86
(2) To be designated as a community development credit union, a 87
Connecticut credit union or Connecticut credit union service 88
organization shall: 89
(A) Serve low-income and moderate-income people and 90
communities that have limited access to affordable financial services 91
and products, with priority given to credit unions that specialize in (i) 92
providing home mortgages or small business loans to members with 93
imperfect, limited or no credit history, (ii) providing financial 94
education and counseling to its members, and (iii) offering products, 95
services and support at a low or reasonable cost to its members; and 96
(B) Agree to focus its activities and efforts to support the purposes 97
set forth in section 2 of this act. 98
(c) Each community development credit union shall: 99
(1) Submit its governance structure to the community development 100
credit union oversight council for review; 101
(2) If applicable and necessary, expand its field of membership in 102
accordance with section 36a-438a of the general statutes, to allow all 103
residents of all community impact zones within the municipality in 104
which such credit union is located, to be members of such credit union; 105
(3) Offer or agree to offer free or low-cost basic checking and 106
savings account services to all residents of the community impact zone 107
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in which it is located; 108
(4) Agree to establish or relocate a location in a community impact 109
zone after such zones are designated pursuant to section 3 of this act. 110
Such credit union shall not be precluded from establishing or having 111
locations elsewhere in the state or establishing or having multiple 112
locations within the municipality in which the community impact zone 113
is located; and 114
(5) Develop and issue social impact bonds to support or supplement 115
the community development efforts of such credit union. Such bonds 116
shall be designed to maximize tax benefits to investors where the 117
community impact zone in which such credit union is located aligns 118
with federal qualified opportunity zones. 119
(d) The goals and purposes of each community development credit 120
union shall be as follows: 121
(1) To provide programs, services and assistance or issue grants to 122
support community reinvestment strategies in the community impact 123
zone in which such credit union is located, including, but not limited 124
to, the following, in order of priority: 125
(A) Encouraging early childhood initiatives through the provision, 126
directly or in collaboration with other entities, of free or low-cost early 127
childhood education services to families that reside within the 128
community impact zone, without regard to family income level. Such 129
services shall include kindergarten preparedness and kindergarten 130
readiness assessments. The credit union may expand such services 131
beyond the community impact zone but within the municipality to 132
areas with poverty levels above the municipal average; 133
(B) Increasing achievement at public elementary and middle schools 134
located in the community impact zone. The credit union shall 135
coordinate with school officials of such schools to submit grant 136
applications to the community development credit union oversight 137
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council to supplement per-student funding for such schools to match 138
or approach the highest levels of per-student funding at any 139
elementary or middle school in the state. Schools that receive such 140
grants shall (i) set goals to achieve scores in the top percentiles on the 141
state-wide mastery examination under section 10-14n of the general 142
statutes. The council shall set specific target goals for each school that 143
receives a grant pursuant to this subparagraph, and (ii) guarantee that 144
a student residing in the community impact zone will be able to attend 145
that specific school; 146
(C) Rebuilding community assets through: 147
(i) The construction, renovation or repair of neighborhood 148
structures or assets of economic or other community significance, 149
including, but not limited to, playgrounds, sidewalks, parks, 150
community centers, senior centers, public libraries, urban gardens and 151
green spaces. Projects that receive funding under this subparagraph 152
shall be owned by the federal, state or municipal government, the 153
community development credit union or a resident of the municipality 154
in which such structure or asset is located. The credit union shall seek 155
to train residents of the community impact zone to perform some of 156
the work such projects require, directly or indirectly through 157
partnerships with existing technical education and apprenticeship 158
programs and with other entities; and 159
(ii) The retention, sale or rental of such projects after completion, 160
provided any sale shall be to a resident of the community impact zone 161
only. The community development credit union may d evelop a 162
cooperative model for owning and renting such projects; 163
(D) Increasing owner-occupancy of residential buildings through: 164
(i) Tracking and undertaking efforts to increase the percentage of 165
owner-occupied residential buildings in the community impact zone. 166
The credit union shall set five-year target percentages and shall 167
periodically evaluate and revise such target amounts; 168
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(ii) The restoration and repair of multifamily rental buildings 169
located in the community impact zone to convert such buildings into 170
owner-occupied residential buildings or multifamily cooperative 171
buildings with at least one unit to be a rental unit. Projects that receive 172
funding under this subparagraph shall be owned by the community 173
development credit union or a resident of the municipality in which 174
such project is located. A multifamily rental building that is not owned 175
by such credit union or resident may be considered for funding under 176
this subparagraph, provided the owner of such building agrees, in 177
writing, to terms set forth by the credit union that further the purposes 178
of this section. The credit union may promote participation in existing 179
state and housing programs to encourage owner occupancy; and 180
(iii) The retention, sale or rental of such buildings after completion, 181
provided any sale shall be to a resident of the community impact zone 182
only. The community development credit union may develop a 183
cooperative model for owning and renting such buildings; 184
(E) Supporting pathways to home ownership through the offering 185
of home buyer education and financial literacy programs in 186
partnership with existing programs. Each community development 187
credit union may develop and offer subsidized or incentivized 188
financial products for individuals who participate in such programs; 189
(F) Creating pipelines to employment for residents of a community 190
impact zone through: 191
(i) The implementation of or participation in community work-192
based training programs, in consultation or coordination with other 193
organizations, including, but not limited to, the Workforce Investment 194
Boards. Such programs shall provide preapprenticeship or 195
apprenticeship opportunities by providing instruction or training to 196
increase literacy, mathematics and other technical, prevocational or 197
vocational skills and connecting workforce, economic development 198
and education systems with businesses and other stakeholders in the 199
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community impact zone. All such efforts undertaken by a community 200
development credit union shall focus on the residents of the 201
community impact zone in which such credit union is located and on 202
businesses offering or carrying out training programs, in order of 203
priority, (I) within the community impact zone, (II) within the 204
municipality in which the community impact zone is located, or (III) 205
without the municipality; and 206
(ii) The placement of residents of the community impact zone with 207
businesses offering employment or on-the-job training that are, in 208
order of priority, (I) within the community impact zone, (II) within the 209
municipality in which the community impact zone is located, or (III) 210
without the municipality only after the opportunities under subclauses 211
(I) and (II) of this clause have been exhausted; 212
(G) Expanding access to programs at existing community centers or 213
senior centers that serve all residents of the community impact zone, 214
regardless of age, or converting such existing centers to centers that 215
serve all residents of the community impact zone, regardless of age; 216
and 217
(H) Providing municipal residents with low-cost transportation 218
options by developing or supporting transportation alternatives within 219
and between municipalities for travel to and from employment, home, 220
school, retail stores and entertainment venues. 221
(2) If a community development credit union has insufficient funds 222
to execute to a high level of quality all of the strategies set forth in 223
subdivision (1) of this subsection, the credit union shall pursue each 224
strategy in the order listed in said subdivision, with an emphasis on 225
achieving a high level of quality in the execution and implementation 226
of such strategy before undertaking the next strategy listed. 227
(e) A community development credit union may: 228
(1) Develop low-cost or subsidized financial products and services 229
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to support the community development goals set forth in subsection 230
(d) of this section and apply to the community development credit 231
union oversight council for funding for such purpose; 232
(2) Collaborate with organizations and businesses to help finance or 233
facilitate investments in real property or community structures and 234
assets pursuant to subsection (d) of this section; 235
(3) Acquire real property described in subsection (d) of this section; 236
(4) Operate as or establish a subsidiary that operates as a contractor 237
or subcontractor, provided such credit union or subsidiary complies 238
with all applicable licensing and registration requirements under the 239
general statutes; and 240
(5) Partner or contract with contractors or subcontractors to carry 241
out projects and related work for the purposes set forth in subsection 242
(d) of this section, provided the credit union shall give primary 243
priority to a contractor or subcontractor located in the community 244
impact zone in which the credit union is located and secondary 245
priority to a contractor or subcontractor located in the municipality in 246
which the credit union is located. 247
(f) Each community development credit union shall submit a 248
financial report to the community development credit union oversight 249
council, on such frequency as the council shall require but at least 250
annually and include such information as the council requires. 251
(g) (1) A community development credit union may request that its 252
designation be removed. The community development credit union 253
oversight council may grant such request, provided the council 254
identifies another Connecticut credit union or Connecticut credit union 255
service organization to replace such credit union. 256
(2) The council may remove the designation of any community 257
development credit union that the council determines is unable to or is 258
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deficient in carrying out the purposes of this section, provided the 259
credit union has been afforded an opportunity to address and improve 260
any deficiencies noted by the council. 261
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 262
"municipality" means any town, city or borough, consolidated town 263
and city or consolidated town and borough and "distressed 264
municipality" has the same meaning as provided in section 32-9p of 265
the general statutes. 266
(b) (1) There is established a community development credit union 267
oversight council, which shall be part of the Legislative Department. 268
The council shall consist of the following members: (A) The Treasurer; 269
(B) the Commissioner of Economic and Community Development; (C) 270
the executive director of the Commission on Equity and Opportunity, 271
established pursuant to section 2-127 of the general statutes; and (D) 272
four members appointed by the Governor. In making the appointment 273
under subparagraph (D) of this subdivision, the Governor shall seek to 274
appoint individuals who have broad community knowledge and 275
experience with communities within the eligible census tracts selected 276
by the Secretary of the Office of Policy and Management pursuant to 277
subsection (e) of this section and are reflective of the ethnic, gender 278
and economic diversity of such communities. All appointments to the 279
council shall be made on or after August 1, 2019. 280
(2) The Treasurer and the Commissioner of Economic and 281
Community Development shall serve as cochairpersons of the council 282
and shall jointly schedule the first meeting of the council, which shall 283
be held not later than September 1, 2019. On and after January 1, 2020, 284
the council shall meet not fewer than six times each year. A majority of 285
the council shall constitute a quorum for the transaction of any 286
business. 287
(3) Any vacancy shall be filled by the appointing authority. Any 288
vacancy occurring other than by expiration of term shall be filled for 289
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the balance of the unexpired term. 290
(4) The members of the council shall serve without compensation, 291
but shall, within the limits of available funds, be reimbursed for 292
expenses necessarily incurred in the performance of their duties. 293
(5) The administrative staff of the joint standing committee of the 294
General Assembly having cognizance of matters relating to economic 295
development shall serve as administrative staff of the council. 296
(c) The council shall: 297
(1) Establish criteria for designation as a community development 298
credit union and community impact zone and designate such credit 299
unions and zones in accordance with the provisions of this section and 300
section 2 of this act; 301
(2) Approve the programs, services and activities of and efforts 302
undertaken by community development credit unions to further the 303
purposes of section 2 of this act; 304
(3) Oversee, support and coordinate the programs, services and 305
activities of and efforts undertaken by community development credit 306
unions under section 2 of this act, within and across municipalities and 307
with other relevant state agencies, entities and initiatives; 308
(4) Advise community development credit unions, state agencies 309
and other entities with respect to the core purposes of community 310
development credit unions; 311
(5) Review the disbursement of funds to and contracts entered into 312
by community development credit unions to evaluate the impact and 313
effectiveness of such disbursements and ensure that decisions made by 314
such credit unions regarding services provided or grants or other 315
financial instruments issued are based solely on the purposes set forth 316
in section 2 of this act; 317
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(6) Review the reports submitted to the council by community 318
development credit unions; 319
(7) Develop procedures by which community development credit 320
unions shall invest the fee payments they receive in community 321
development strategies, as set forth in section 2 of this act, in the 322
community impact zones within the municipalities in which such 323
credit union is located; and 324
(8) Do all things necessary to carry out its duties and responsibilities 325
under this section. 326
(d) The council shall designate community development credit 327
unions from among applicants that fulfill the requirements set forth in 328
section 2 of this act. The council may designate only one community 329
development credit union for each municipality. 330
(e) The Secretary of the Office of Policy and Management shall select 331
eligible census tracts and the council shall designate community 332
impact zones in accordance with the provisions of this subsection. 333
(1) The secretary shall select census tracts within distressed 334
municipalities that are eligible to have a community impact zone or 335
zones designated within such tract. The secretary shall consider, but 336
need not be limited to, the following metrics for each census tract: (A) 337
The educational level attained by the population, specifically the 338
percentage of the population attaining an associate degree or a 339
bachelor's degree; (B) the most recent third grade scores on the state-340
wide mastery examination under section 10-14n of the general statutes 341
for reading; (C) the most recent third grade scores on the state-wide 342
mastery examination under section 10-14n of the general statutes for 343
mathematics; (D) the unemployment rate; (E) the state of the local 344
economy, employment availability and access and diversity of jobs; (F) 345
the percentage of the population receiving public assistance; (G) the 346
percentage of the population below the federal poverty level; (H) the 347
rate of home ownership; (I) the percentage of vacant housing; and (J) 348
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crime rates. 349
(2) Not later than August 1, 2019, the secretary shall release the 350
eligible census tracts based on those that demonstrate the greatest 351
socio-economic need as indicated by subparagraphs (A) to (J), 352
inclusive, of subdivision (1) of this subsection and the criteria for an 353
area within such tract to be designated as a community impact zone. 354
Such criteria shall take into consideration the goals, purposes and 355
requirements set forth in section 2 of this act and may give weight to 356
one or more of the following: (A) The existence of a public elementary 357
school within the area; (B) the existence of an early childhood center 358
within the area; (C) the existence of a community center serving 359
children or seniors, or both, within the area; (D) the existence of a local 360
community organization comprised of residents and leaders within the 361
area, which organization's role is complementary to the goals, 362
purposes and requirements set forth in section 2 of this act; (E) the 363
proximity of the area to existing or planned public transportation; and 364
(F) existing access to an asset-based housing organization that focuses 365
on home ownership and financial literacy. 366
(3) Not later than June 1, 2020, each community development credit 367
union shall submit a proposal to the council for not more than two 368
geographically distinct areas within an eligible census tract in which 369
the credit union is located to be designated as a community impact 370
zone. 371
(4) Not later than August 1, 2020, the council shall announce its 372
selections for designated community impact zones. The council may 373
designate one community impact zone for a municipality with a 374
population of one hundred thousand or less and two community 375
impact zones for a municipality with a population of greater than one 376
hundred thousand. If the council rejects a proposal or does not 377
designate an area that a community development credit union 378
proposed, the council may allow such credit union to resubmit a 379
proposal if a community impact zone has not been designated as set 380
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forth in this subdivision. 381
(5) Not later than February 1, 2021, or as soon as practicable 382
following the designations of community impact zones, each 383
community development credit union shall establish an office or 384
relocate its office within such zone. 385
(f) The council shall develop a proposal to allow social impact bonds 386
to be issued by the state to support public schools located in 387
community impact zones. Not later than February 1, 2020, the 388
Secretary of the Office of Policy and Management shall submit a 389
report, in accordance with the provisions of section 11-4a of the general 390
statutes, to the General Assembly, setting forth the proposal and 391
including recommendations on ways to leverage the federal qualified 392
opportunity zones program to support such public schools. 393
(g) (1) The council may cause to have conducted an external, 394
independent audit of any community development credit union. 395
(2) The council may request the Auditors of Public Accounts to 396
perform, and said auditors shall perform, audits and other related 397
evaluations to facilitate the council's responsibilities established under 398
this section. 399
(h) Not later than February 1, 2022, and annually thereafter, the 400
council shall submit a report to the Governor and to the General 401
Assembly, in accordance with the provisions of section 11-4a of the 402
general statutes. Such report shall include, but not be limited to, a list 403
of the community development credit unions and community impact 404
zones designated to date, a summary of the programs, services, 405
activities and efforts undertaken by such credit unions pursuant to 406
section 2 of this act and the disbursements made from the community 407
development account established under subsection (d)of section 1 of 408
this act to support such programs, services, activities and efforts. 409
Sec. 4. Section 36a-455a of the general statutes is repealed and the 410
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following is substituted in lieu thereof (Effective from passage): 411
A Connecticut credit union may: 412
(1) Transact a general credit union business and exercise by its 413
governing board or duly authorized members of senior management, 414
subject to applicable law, all such incidental powers as are consistent 415
with its purposes. The express powers authorized for a Connecticut 416
credit union under this section do not preclude the existence of 417
additional powers deemed to be incidental to the transaction of a 418
general credit union business pursuant to this subdivision; 419
(2) (A) Issue shares to its members and receive payments on shares 420
from its members and from those nonmembers specified in subsection 421
(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 422
36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 423
receive deposits of members and nonmembers subject to provisions of 424
sections 36a-456a and 36a-456b, (C) reduce the amount of its member 425
and nonmember shares and deposits, (D) expel members and cancel 426
shares in accordance with section 36a-439a, and (E) provide check 427
cashing and wire and electronic transfer services to nonmembers who 428
are within such credit union's field of membership; 429
(3) Make and use its best efforts to make secured and unsecured 430
loans and other extensions of credit to its members in accordance with 431
section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 432
(4) Invest its funds in accordance with section 36a-459a; 433
(5) Declare and pay dividends in accordance with sections 36a-441a 434
and 36a-456c, and pay interest refunds to borrowers; 435
(6) Act as a finder or agent for the sale of insurance and fixed and 436
variable rate annuities directly, sell insurance and such annuities 437
indirectly through a Connecticut credit union service organization, or 438
enter into arrangements with third-party marketing organizations for 439
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the sale by such third-party marketing organizations of insurance or 440
such annuities on the premises of the Connecticut credit union or to 441
members of the Connecticut credit union, provided: (A) Such 442
insurance and annuities are issued or purchased by or from an 443
insurance company licensed in accordance with section 38a-41; and (B) 444
the Connecticut credit union, Connecticut credit union service 445
organization or third-party marketing organization, and any officer 446
and employee thereof, shall be licensed as required by section 38a-769 447
before engaging in any of the activities authorized by this subdivision. 448
As used in this subdivision, "annuities" and "insurance" have the same 449
meanings as set forth in section 38a-41, except that "insurance" does 450
not include title insurance. The provisions of this subdivision do not 451
authorize a Connecticut credit union or Connecticut credit union 452
service organization to underwrite insurance or annuities; 453
(7) Borrow money to an amount not exceeding fifty per cent of the 454
total assets of the Connecticut credit union provided the credit union 455
shall give prior notice to the commissioner in writing of its intention to 456
borrow amounts in excess of thirty-five per cent of its total assets; 457
(8) Act as fiscal agent for the federal government, this state or any 458
agency or political subdivision thereof; 459
(9) Provide loan processing, loan servicing, member check and 460
money order cashing services, disbursement of share withdrawals and 461
loan proceeds, money orders, internal audits, automated teller 462
machine services, ACH and wire transfer services, prepaid debit cards, 463
payroll cards, digital wallet services, coin and currency services, 464
remote deposit capture services, electronic banking and other similar 465
services to other Connecticut credit unions, federal credit unions, 466
federally insured financial institutions and out-of-state credit unions; 467
(10) Provide finder services to its members, including the offering of 468
third party products and services through the sale of advertising space 469
on its web site, account statements and receipts, and the sale of 470
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statistical or consumer financial information to outside vendors in 471
accordance with sections 36a-40 to 36a-45, inclusive, in order to 472
facilitate the sale of such products to the members of such Connecticut 473
credit union; 474
(11) With the prior approval of the commissioner, exercise fiduciary 475
powers; 476
(12) Maintain and rent safe deposit boxes within suitably 477
constructed vaults, provided the Connecticut credit union has 478
adequate insurance coverage for losses related to such rental; 479
(13) Provide certification services, including notary services, 480
signature guaranties, certification of electronic signatures and share 481
draft certifications; 482
(14) Act as agent (A) in the collection of taxes for any qualified 483
treasurer of any taxing district or qualified collector of taxes, or (B) for 484
any electric distribution, gas, water or telephone company operating 485
within this state in receiving moneys due such company for utility 486
services furnished by it; 487
(15) Issue and sell securities which (A) are guaranteed by the 488
Federal National Mortgage Association or any other agency or 489
instrumentality authorized by state or federal law to create a 490
secondary market with respect to extensions of credit of the type 491
originated by the Connecticut credit union, or (B) subject to the 492
approval of the commissioner, relate to extensions of credit originated 493
by the Connecticut credit union and are guaranteed or insured by a 494
financial guaranty insurance company or comparable private entity; 495
(16) Establish a charitable fund, either in the form of a charitable 496
trust or a nonprofit corporation to assist in making charitable 497
contributions, provided (A) the trust or nonprofit corporation is 498
exempt from federal income taxation and may accept charitable 499
contributions under Section 501 of the Internal Revenue Code of 1986, 500
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or any subsequent corresponding internal revenue code of the United 501
States, as from time to time amended, (B) the trust or nonprofit 502
corporation's operations are disclosed fully to the commissioner upon 503
request, and (C) the trust department of the credit union or one or 504
more directors or members of senior management of the credit union 505
act as trustees or directors of the fund; 506
(17) In the discretion of a majority of its governing board, make 507
contributions or gifts to or for the use of any corporation, trust or 508
community chest, fund or foundation created or organized under the 509
laws of the United States or of this state and organized and operated 510
exclusively for charitable, educational or public welfare purposes, or of 511
any hospital which is located in this state and which is exempt from 512
federal income taxes and to which contributions are deductible under 513
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 514
corresponding internal revenue code of the United States, as from time 515
to time amended; 516
(18) Subject to the provisions of section 36a-455b, sell, pledge or 517
assign any or all of its outstanding extensions of credit to any other 518
lending institution, credit union service organization or quasi-519
governmental entity and any government-sponsored enterprise, and 520
act as collecting, remitting and servicing agent in connection with any 521
such extension of credit and charge for its acts as agent. Any such 522
credit union may purchase the minimum amount of capital stock of 523
such entity or enterprise if required by that entity or enterprise to be 524
purchased in connection with the sale, pledge or assignment of 525
extensions of credit to that entity or enterprise and may hold and 526
dispose of such stock, provided that with respect to purchases of stock 527
of a credit union service organization, the Connecticut credit union 528
shall not exceed the limitations of section 36a-459a. A Connecticut 529
credit union may purchase one or more outstanding extensions of 530
credit from any other lending institution and any federally-recognized 531
Native American tribe, provided there exists a formal written 532
agreement with tribal government to permit the credit union to service 533
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LCO No. 7329 19 of 20
and collect on such extensions of credit; 534
(19) Subject to the provisions of section 36a-455b, sell a participating 535
interest in any or all of its outstanding extensions of credit to and 536
purchase a participating interest in any or all of the outstanding 537
extensions of credit of any financial institution or credit union service 538
organization pursuant to an appropriate written participation and 539
servicing agreement to be signed by all parties involved in such 540
transaction; 541
(20) With the approval of the commissioner, join the Federal Home 542
Loan Bank System and borrow funds as provided under federal law; 543
(21) Subject to the provisions of section 36a-455b, sell all or part of 544
its assets, other than extensions of credit, to other lending institutions, 545
purchase all or part of the assets, other than extensions of credit, of 546
other lending institutions, and assume all or part of the shares and the 547
liabilities of any other credit union or out-of-state credit union; 548
(22) With the prior written approval of the commissioner, engage in 549
closely related activities, unless the commissioner determines that any 550
such activity shall be conducted by a credit union service organization 551
of the Connecticut credit union, utilizing such organizational, 552
structural or other safeguards as the commissioner may require, in 553
order to protect the Connecticut credit union from exposure to loss. As 554
used in this subdivision, "closely related activities" means those 555
activities that are closely related, convenient and necessary to the 556
business of a Connecticut credit union, are reasonably related to the 557
operation of a Connecticut credit union or are financial in nature 558
including, but not limited to, business and professional services, data 559
processing, courier and messenger services, credit-related activities, 560
consumer services, services related to real estate, financial consulting, 561
tax planning and preparation, community development activities, or 562
any activities reasonably related to such activities; 563
(23) Engage in any activity that a federal credit union or out-of-state 564
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LCO No. 7329 20 of 20
credit union may be authorized to engage in under state or federal law, 565
provided the Connecticut credit union file with the commissioner prior 566
written notice of its intention to engage in such activity. Such notice 567
shall include a description of the activity, a description of the financial 568
impact of the activity on the Connecticut credit union, citation of the 569
legal authority to engage in the activity under state or federal law, a 570
description of any limitations or restrictions imposed on such activity 571
under state or federal law, and any other information that the 572
commissioner may require. The Connecticut credit union may engage 573
in any such activity unless the commissioner disapproves such activity 574
not later than thirty days after the notice is filed. The commissioner 575
may adopt regulations in accordance with chapter 54 to ensure that 576
any such activity is conducted in a safe and sound manner with 577
adequate consumer protections. The provisions of this subdivision do 578
not authorize a Connecticut credit union or a Connecticut credit union 579
service organization to sell title insurance; 580
(24) (A) If designated as a community development credit union in 581
accordance with the provisions of section 2 of this act, engage in any 582
activity authorized for a community development credit union under 583
said section, and (B) issue social impact bonds in accordance with 584
subdivision (5) of subsection (c) of section 2 of this act. 585
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage New section
Sec. 2 from passage New section
Sec. 3 from passage New section
Sec. 4 from passage 36a-455a
Statement of Purpose:
To use deposits in lieu of taxes to implement certain community
restoration and revitalization efforts.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
not underlined.]