Connecticut Senate Bill SB01138 Introduced / Bill

                       
 
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General Assembly  Raised Bill No. 1138  
January Session, 2019  
LCO No. 7328 
 
 
Referred to Committee on FINANCE, REVENUE AND 
BONDING  
 
 
Introduced by:  
(FIN)  
 
 
 
AN ACT CONCERNING CO MMUNITY RESTORATION FUNDS. 
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. (NEW) (Effective from passage) (a) There are established 1 
community development corporations, which shall use the revenue 2 
from the tax imposed under subsection (b) of section 6 of this act and 3 
section 12-408 of the general statutes, as amended by this act, for the 4 
community restoration and revitalization purposes set forth in this 5 
section and section 2 of this act. Such moneys shall be disbursed by 6 
and used in coordination with the community development 7 
corporation oversight council established under section 3 of this act. 8 
(b) (1) Any entity that is exempt from tax pursuant to Section 501(c) 9 
of the Internal Revenue Code of 1986, or any subsequent 10 
corresponding internal revenue code of the United States, as amended 11 
from time to time, and is located in a distressed municipality, as 12 
defined in section 32-9p of the general statutes, at the time such entity 13 
submits an application for designation, may apply to the council to be 14 
designated as a community development corporation. 15     
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(2) To be eligible to be designated as a community development 16 
corporation, such entity shall: 17 
(A) (i) Have demonstrated effectiveness in, or have been formed for 18 
the purpose of, building, attracting and retaining neighborhood 19 
wealth, and (ii) provide financial, educational or related services to 20 
support initiatives that concentrate investments in human capital and 21 
infrastructure in a specific neighborhood or neighborhoods, with 22 
measureable community revitalization achievements; 23 
(B) Agree to focus all its efforts in the distressed municipality in 24 
which it is located; 25 
(C) Agree to establish or relocate its primary office in a community 26 
impact zone within the municipality after such zones are designated 27 
pursuant to section 3 of this act; and 28 
(D) Agree to establish or relocate any auxiliary locations to within 29 
the boundaries of the municipality in which the corporation is located. 30 
(c) (1) Each community development corporation shall provide 31 
programs, services and assistance or issue grants to support 32 
community reinvestment strategies in the community impact zone in 33 
which such corporation is located, including, but not limited to, the 34 
following, in order of priority: 35 
(A) Encouraging early childhood initiatives through the provision, 36 
directly or in collaboration with other entities, of free or low-cost early 37 
childhood education services to families that reside within the 38 
community impact zone, without regard to family income level. Such 39 
services shall include kindergarten preparedness and kindergarten 40 
readiness assessments. The corporation may expand such services 41 
beyond the community impact zone but within the municipality to 42 
areas with poverty levels above the municipal average; 43 
(B) Increasing achievement at public elementary and middle schools 44     
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located in the community impact zone. The corporation shall 45 
coordinate with school officials of such schools to submit grant 46 
applications to the community development corporation oversight 47 
council to supplement per-student funding for such schools to match 48 
or approach the highest levels of per-student funding at any 49 
elementary or middle school in the state. Schools that receive such 50 
grants shall (i) set goals to achieve scores in the top percentiles on the 51 
state-wide mastery examination under section 10-14n of the general 52 
statutes. The council shall set specific target goals for each school that 53 
receives a grant pursuant to this subparagraph, and (ii) guarantee that 54 
a student residing in the community impact zone will be able to attend 55 
that specific school; 56 
(C) Rebuilding community assets through: 57 
(i) The construction, renovation or repair of neighborhood 58 
structures or assets of economic or other community significance, 59 
including, but not limited to, playgrounds, sidewalks, parks, 60 
community centers, senior centers, public libraries, urban gardens and 61 
green spaces. Projects that receive funding under this subparagraph 62 
shall be owned by the federal, state or municipal government, the 63 
community development corporation located in the community impact 64 
zone where such project is located, the partnered community 65 
development credit union, as described in section 2 of this act, or a 66 
resident of the municipality in which such structure or asset is located. 67 
The corporation shall seek to train residents of the community impact 68 
zone to perform some of the work such projects require, directly or 69 
indirectly through partnerships with existing technical education and 70 
apprenticeship programs and with other entities; and 71 
(ii) The retention, sale or rental of such projects after completion, 72 
provided any sale shall be to a resident of the community impact zone 73 
only. The partnered community development credit union may 74 
develop a cooperative model for owning and renting such projects; 75     
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(D) Increasing owner-occupancy of residential buildings through: 76 
(i) Tracking and undertaking efforts to increase the percentage of 77 
owner-occupied residential buildings in the community impact zone. 78 
The corporation shall set five-year target percentages and shall 79 
periodically evaluate and revise such target amounts; 80 
(ii) The restoration and repair of multifamily rental buildings 81 
located in the community impact zone to convert such buildings into 82 
owner-occupied residential buildings or multifamily cooperative 83 
buildings with at least one unit to be a rental unit. Projects that receive 84 
funding under this subparagraph shall be owned by the community 85 
development corporation located in the community impact zone, the 86 
partnered community development credit union or a resident of the 87 
municipality in which such project is located. A multifamily rental 88 
building that is not owned by such corporation, credit union or 89 
resident may be considered for funding under this subparagraph, 90 
provided the owner of such building agrees, in writing, to terms set 91 
forth by the corporation that further the purposes of this section. The 92 
corporation may promote participation in existing state and housing 93 
programs to encourage owner occupancy; and 94 
(iii) The retention, sale or rental of such buildings after completion, 95 
provided any sale shall be to a resident of the community impact zone 96 
only. The corporation or the partnered community development credit 97 
union may develop a cooperative model for owning and renting such 98 
buildings; 99 
(E) Supporting pathways to home ownership through the offering 100 
of home buyer education and financial literacy programs in 101 
partnership with existing programs. All such partnerships shall be 102 
joint efforts between the community development corporation and its 103 
partnered community development credit union and each such credit 104 
union may develop and offer subsidized or incentivized financial 105 
products for individuals who participate in such programs; 106     
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(F) Creating pipelines to employment for residents of a community 107 
impact zone through: 108 
(i) The implementation of or participation in community work-109 
based training programs, in consultation or coordination with other 110 
organizations, including, but not limited to, the Workforce Investment 111 
Boards. Such programs shall provide preapprenticeship or 112 
apprenticeship opportunities by providing instruction or training to 113 
increase literacy, mathematics and other technical, prevocational or 114 
vocational skills and connecting workforce, economic development 115 
and education systems with businesses and other stakeholders in the 116 
community impact zone. All such efforts undertaken by a community 117 
development corporation shall focus on the residents of the 118 
community impact zone in which such corporation is located and on 119 
businesses offering or carrying out training programs, in order of 120 
priority, (I) within the community impact zone, (II) within the 121 
municipality in which the community impact zone is located, or (III) 122 
without the municipality; and 123 
(ii) The placement of residents of the community impact zone with 124 
businesses offering employment or on-the-job training that are, in 125 
order of priority, (I) within the community impact zone, (II) within the 126 
municipality in which the community impact zone is located, or (III) 127 
without the municipality only after the opportunities under subclauses 128 
(I) and (II) of this clause have been exhausted; 129 
(G) Expanding access to programs at existing community centers or 130 
senior centers that serve all residents of the community impact zone, 131 
regardless of age, or converting such existing centers to centers that 132 
serve all residents of the community impact zone, regardless of age; 133 
and 134 
(H) Providing municipal residents with low-cost transportation 135 
options by developing or supporting transportation alternatives within 136 
and between municipalities for travel to and from employment, home, 137     
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school, retail stores and entertainment venues. 138 
(2) If the corporation has insufficient funds to execute to a high level 139 
of quality all of the strategies set forth in subdivision (1) of this 140 
subsection, the corporation shall pursue each strategy in the order 141 
listed in said subdivision, with an emphasis on achieving a high level 142 
of quality in the execution and implementation of such strategy before 143 
undertaking the next strategy listed. 144 
(d) A community development corporation may: 145 
(1) Acquire real property described in subsection (b) of this section 146 
in partnership with or in coordination with its partnered community 147 
development credit union; 148 
(2) Operate as or establish a subsidiary that operates as a contractor 149 
or subcontractor, provided such corporation or subsidiary complies 150 
with all applicable licensing and registration requirements under the 151 
general statutes; and 152 
(3) Partner or contract with contractors or subcontractors to carry 153 
out projects and related work for the purposes set forth in subsection 154 
(b) of this section, provided the corporation shall give primary priority 155 
to a contractor or subcontractor located in the community impact zone 156 
in which the corporation is located and secondary priority to a 157 
contractor or subcontractor located in the municipality in which the 158 
corporation is located. 159 
(e) Not later than six months after being designated as a community 160 
development corporation, such corporation shall (1) identify a 161 
Connecticut credit union located within the municipality in which 162 
such corporation is located that will apply to the community 163 
development corporation oversight council for designation as a 164 
community development credit union pursuant to section 2 of this act, 165 
or (2) issue a request for proposal for the organization of a new 166 
Connecticut credit union to partner with or for an existing Connecticut 167     
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credit union to partner with, such corporation. 168 
(f) Notwithstanding the provisions of chapter 846 of the general 169 
statutes or section 12-157 of the general statutes, a community 170 
development corporation shall be offered the right of first refusal in 171 
the sale of any real property that has been foreclosed or is being sold at 172 
public auction and is located in the community impact zone in which 173 
such corporation is located, provided such corporation has timely 174 
notified the mortgagee or the town tax collector, as applicable, of such 175 
corporation's interest in acquiring such property. 176 
(g) Each community development corporation shall submit a 177 
financial report to the community development corporation oversight 178 
council, on such frequency as the council shall require but at least 179 
annually, and include such information as the council requires. 180 
(h) (1) A community development corporation may request that its 181 
designation be removed. The community development corporation 182 
oversight council may grant such request, provided the council 183 
designates, from prior submitted applications or through a new 184 
request for application submissions, another entity to replace such 185 
corporation. 186 
(2) The council may remove the designation of any community 187 
development corporation that the council determines is unable to or is 188 
deficient in carrying out the purposes of this section, provided the 189 
corporation has been afforded an opportunity to address and improve 190 
any deficiencies noted by the council. 191 
Sec. 2. (NEW) (Effective from passage) (a) There are established 192 
community development credit unions, which shall partner with 193 
community development corporations, established under section 1 of 194 
this act, to further the community restoration and revitalization 195 
purposes set forth in this section and section 1 of this act. 196 
(b) (1) Any Connecticut credit union organized under chapter 667 of 197     
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the general statutes and in compliance with the provisions of said 198 
chapter or Connecticut credit union service organization, as defined in 199 
section 36a-2 of the general statutes, may apply to the community 200 
development corporation oversight council established under section 3 201 
of this act to be designated as a community development credit union. 202 
(2) To be designated as a community development credit union, a 203 
Connecticut credit union or Connecticut credit union service 204 
organization shall: 205 
(A) Serve low-income and moderate-income people and 206 
communities that have limited access to affordable financial services 207 
and products, with priority given to credit unions that specialize in (i) 208 
providing home mortgages or small business loans to members with 209 
imperfect, limited or no credit history, (ii) providing financial 210 
education and counseling to its members, and (iii) offering products, 211 
services and support at a low or reasonable cost to its members; and 212 
(B) Agree to partner with or be partnered with at least one 213 
community development corporation and focus its activities and 214 
efforts to support such corporation's purposes set forth in section 1 of 215 
this act. 216 
(c) Each community development credit union shall: 217 
(1) Submit its governance structure to the community development 218 
corporation oversight council for review and approve the addition of 219 
representatives of its partnered community development corporation 220 
to its governing board, executive committee or supervisory committee 221 
or similar board or committee, in such numbers and as agreed to by 222 
such credit union and corporation; 223 
(2) If applicable and necessary, expand its field of membership in 224 
accordance with section 36a-438a of the general statutes, to allow all 225 
residents of all community impact zones within the municipality in 226 
which its partnered community development corporation is located, to 227     
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be members of such credit union; 228 
(3) Offer or agree to offer free or low-cost basic checking and 229 
savings account services to all residents of the community impact zone 230 
in which its partnered community development corporation is located; 231 
(4) Agree to establish or relocate a location in the community impact 232 
zone in which its partnered community development corporation is 233 
located after such zones are designated pursuant to section 3 of this 234 
act. Such credit union shall not be precluded from establishing or 235 
having locations elsewhere in the state or establishing or having 236 
multiple locations within the municipality in which the community 237 
impact zone is located; and 238 
(5) Develop, in consultation with its partnered community 239 
development corporation, and issue, social impact bonds to support or 240 
supplement the efforts of such corporation. Such bonds shall be 241 
designed to maximize tax benefits to investors where the community 242 
impact zone in which such corporation is located aligns with federal 243 
qualified opportunity zones. 244 
(d) A community development credit union may: 245 
(1) Develop low-cost or subsidized financial products and services 246 
to support the community development goals of its pa rtnered 247 
community development corporation and apply to the community 248 
development corporation oversight council for funding for such 249 
purpose; and 250 
(2) Collaborate with its partnered community development 251 
corporation to help finance or facilitate investments in real property or 252 
community structures and assets pursuant to section 1 of this act. 253 
(e) Each community development credit union shall submit a 254 
financial report to the community development corporation oversight 255 
council, on such frequency as the council shall require but at least 256     
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annually and include such information as the council requires. 257 
(f) (1) A community development credit union may request that its 258 
designation be removed and that it no longer be partnered with its 259 
community development corporation. The community development 260 
corporation oversight council may grant such request, provided such 261 
corporation identifies another Connecticut credit union or Connecticut 262 
credit union service organization to replace such credit union or issues 263 
a request for proposal for the organization of a new Connecticut credit 264 
union or Connecticut credit union service organization with which to 265 
partner. 266 
(2) The council may remove the designation of any community 267 
development credit union that the council determines is unable to or is 268 
deficient in carrying out the purposes of this section, provided the 269 
credit union has been afforded an opportunity to address and improve 270 
any deficiencies noted by the council. 271 
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 272 
"municipality" means any town, city or borough, consolidated town 273 
and city or consolidated town and borough and "distressed 274 
municipality" has the same meaning as provided in section 32-9p of 275 
the general statutes. 276 
(b) (1) There is established a community development corporation 277 
oversight council, which shall be part of the Legislative Department. 278 
The council shall consist of the following members: (A) The Treasurer; 279 
(B) the Commissioner of Economic and Community Development; (C) 280 
the executive director of the Commission on Equity and Opportunity, 281 
established pursuant to section 2-127 of the general statutes; and (D) 282 
four members appointed by the Governor. In making the appointment 283 
under subparagraph (D) of this subdivision, the Governor shall seek to 284 
appoint individuals who have broad community knowledge and 285 
experience with communities within the eligible census tracts selected 286 
by the Secretary of the Office of Policy and Management pursuant to 287     
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subsection (f) of this section and are reflective of the ethnic, gender and 288 
economic diversity of such communities. All appointments to the 289 
council shall be made on or after August 1, 2019. 290 
(2) The Treasurer and the Commissioner of Economic and 291 
Community Development shall serve as cochairpersons of the council 292 
and shall jointly schedule the first meeting of the council, which shall 293 
be held not later than September 1, 2019. On and after January 1, 2020, 294 
the council shall meet not fewer than six times each year. A majority of 295 
the council shall constitute a quorum for the transaction of any 296 
business. 297 
(3) Any vacancy shall be filled by the appointing authority. Any 298 
vacancy occurring other than by expiration of term shall be filled for 299 
the balance of the unexpired term. 300 
(4) The members of the council shall serve without compensation, 301 
but shall, within the limits of available funds, be reimbursed for 302 
expenses necessarily incurred in the performance of their duties. 303 
(5) The administrative staff of the joint standing committee of the 304 
General Assembly having cognizance of matters relating to economic 305 
development shall serve as administrative staff of the council. 306 
(c) The council shall: 307 
(1) Establish criteria for designation as a community development 308 
corporation, community development credit union and community 309 
impact zone and designate such corporations, credit unions and zones 310 
in accordance with the provisions of this section and sections 1 and 2 311 
of this act; 312 
(2) Establish an annual budget in accordance with the provisions of 313 
this section; 314 
(3) Oversee the investments of, deposits in and disbursements from 315 
the Community Development Corporation Trust Fund established 316     
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under section 4 of this act; 317 
(4) Approve the programs, services and activities of and efforts 318 
undertaken by community development corporations and community 319 
development credit unions to further the purposes of this section and 320 
sections 1 and 2 of this act; 321 
(5) Oversee, support and coordinate the programs, services and 322 
activities of and efforts undertaken by community development 323 
corporations and community development credit unions under 324 
sections 1 and 2 of this act, within and across municipalities and with 325 
other relevant state agencies, entities and initiatives; 326 
(6) Advise community development corporations, community 327 
development credit unions, state agencies and other entities with 328 
respect to the core purposes of community development corporations 329 
and community development credit unions; 330 
(7) Review the disbursement of funds to, and contracts entered into 331 
by, community dev elopment corporations and community 332 
development credit unions, to evaluate the impact and effectiveness of 333 
such disbursements and ensure that decisions made by such 334 
corporations and credit unions regarding services provided or grants 335 
or other financial instruments issued are based solely on the purposes 336 
set forth in sections 1 and 2 of this act; 337 
(8) Review the reports submitted to the council by community 338 
development corporations and community development credit unions; 339 
and 340 
(9) Do all things necessary to carry out its duties and responsibilities 341 
under sections 1 to 4, inclusive, of this act. 342 
(d) The council shall designate community development credit 343 
unions from among applicants that fulfill the requirements set forth in 344 
subsection (b) of section 2 of this act. The council may designate only 345     
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one community development credit union for each municipality. 346 
(e) The council shall designate community development 347 
corporations in accordance with the provisions of this subsection. 348 
(1) Not later than October 1, 2019, the council shall release its criteria 349 
for prospective applicants seeking designation as a community 350 
development corporation. In addition to the requirements set forth in 351 
section 1 of this act, such criteria shall take into consideration the goals, 352 
purposes and requirements set forth in said section and shall include, 353 
but not be limited to, (A) whether the applicant has broad community 354 
representation in its leadership and governance, with an emphasis on 355 
ethnic and economic diversity reflective of the municipality in which 356 
the applicant is located, and (B) the professional competence and 357 
relevant experience of the applicant's management and staff. Each 358 
applicant shall include (i) a letter of support from the chief elected 359 
official of the municipality in which the applicant is located, and (ii) a 360 
statement that the applicant agrees to locate its office in a community 361 
impact zone once such zone is designated. The council shall accept 362 
applications on or after October 1, 2019, until and including January 363 
31, 2020. 364 
(2) Not later than March 1, 2020, the council shall announce its 365 
selections for designated community development corporations. The 366 
council may designate only one community development corporation 367 
for each municipality. 368 
(f) The Secretary of the Office of Policy and Management shall select 369 
eligible census tracts and the council shall designate community 370 
impact zones in accordance with the provisions of this subsection. 371 
(1) The secretary shall select census tracts within distressed 372 
municipalities that are eligible to have a community impact zone or 373 
zones designated within such tract. The secretary shall consider, but 374 
need not be limited to, the following metrics for each census tract: (A) 375 
The educational level attained by the population, specifically the 376     
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percentage of the population attaining an associate degree or a 377 
bachelor's degree; (B) the most recent third grade scores on the state-378 
wide mastery examination under section 10-14n of the general statutes 379 
for reading; (C) the most recent third grade scores on the state-wide 380 
mastery examination under section 10-14n of the general statutes for 381 
mathematics; (D) the unemployment rate; (E) the state of the local 382 
economy, employment availability and access and diversity of jobs; (F) 383 
the percentage of the population receiving public assistance; (G) the 384 
percentage of the population below the federal poverty level; (H) the 385 
rate of home ownership; (I) the percentage of vacant housing; and (J) 386 
crime rates. 387 
(2) Not later than August 1, 2019, the secretary shall release the 388 
eligible census tracts based on those that demonstrate the greatest 389 
socio-economic need as indicated by subparagraphs (A) to (J), 390 
inclusive, of subdivision (1) of this subsection and the criteria for an 391 
area within such tract to be designated as a community impact zone. 392 
Such criteria shall take into consideration the goals, purposes and 393 
requirements set forth in section 1 of this act and may give weight to 394 
one or more of the following: (A) The existence of a public elementary 395 
school within the area; (B) the existence of an early childhood center 396 
within the area; (C) the existence of a community center serving 397 
children or seniors, or both, within the area; (D) the existence of a local 398 
community organization comprised of residents and leaders within the 399 
area, which organization's role is complementary to the goals, 400 
purposes and requirements set forth in section 1 of this act; (E) the 401 
proximity of the area to existing or planned public transportation; and 402 
(F) existing access to an asset-based housing organization that focuses 403 
on home ownership and financial literacy. 404 
(3) Not later than June 1, 2020, each community development 405 
corporation shall submit a proposal to the council for not more than 406 
two geographically distinct areas within an eligible census tract in 407 
which the corporation is located to be designated as a community 408 
impact zone. 409     
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(4) Not later than August 1, 2020, the council shall announce its 410 
selections for designated community impact zones. The council may 411 
designate one community impact zone for a municipality with a 412 
population of one hundred thousand or less and two community 413 
impact zones for a municipality with a population of greater than one 414 
hundred thousand. If the council rejects a proposal or does not 415 
designate an area that a community development corporation 416 
proposed, the council may allow such corporation to resubmit a 417 
proposal if a community impact zone has not been designated as set 418 
forth in this subdivision. 419 
(5) Not later than February 1, 2021, or as soon as practicable 420 
following the designations of community impact zones, each 421 
community development corporation shall establish an office or 422 
relocate its office within such zone. 423 
(g) The council shall establish an annual budget that sets forth the 424 
amounts in the Community Development Corporation Trust Fund to 425 
be invested, the amounts in the fund to be disbursed for programs, 426 
services, activities and expenses for the purposes of sections 1 and 2 of 427 
this act and the amount to be set aside for the purposes of subsection 428 
(j) of this section. The council, in consultation with the Treasurer and 429 
the chief executive officer of the Connecticut Green Bank established 430 
under section 16-245n of the general statutes, shall adopt an 431 
investment plan with the goals of yielding investment returns over the 432 
long-term to support the programs, services, activities and efforts for 433 
the purposes of sections 1 and 2 of this act and supporting a 434 
substantial portion of the fund's annual expenditures from the 435 
investment returns. The initial investment plan shall set forth an 436 
investment strategy for not less than twenty years and the council may 437 
revise such plan from time to time by affirmative vote. The council 438 
shall annually review such plan and the investment returns generated 439 
and shall adjust the amount of moneys to be invested and disbursed 440 
each year accordingly. 441     
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(h) (1) The council shall set aside an amount in its annual budget 442 
equal to the amount appropriated in the state budget act for the 443 
intensive reading instruction program established under section 10-444 
14u of the general statutes, provided such amount set aside shall not 445 
exceed three million dollars each year. The amount to be set aside 446 
under this subsection may be reduced if there are insufficient moneys 447 
in the fund to provide for the purposes set forth in sections 1 and 2 of 448 
this act and for the entire amount of the set-aside specified under this 449 
subdivision. 450 
(2) The council shall make such moneys available for the 451 
implementation or support of said reading instruction program or any 452 
state-wide early literacy initiative developed and implemented by the 453 
Department of Education, regardless of whether such program or 454 
initiative is related to a community impact zone or is eligible for other 455 
community development corporation or community development 456 
credit union programs or other grants or funding. The moneys made 457 
available pursuant to this subdivision shall supplement existing or 458 
other available grants or funding. The council shall establish forms and 459 
criteria to apply for such moneys and shall give primary priority to 460 
applications from schools located in a community impact zone, 461 
provided all such schools submit an application. Any moneys awarded 462 
to such schools shall be distributed on a zone-wide basis to be used 463 
solely for the purpose of making said reading instruction program 464 
available to all students reading below proficiency level who reside or 465 
attend school within the community impact zone. The council shall 466 
give secondary priority to applications from schools located in a 467 
distressed municipality on the basis of the level of student reading 468 
achievement, as determined by the Commissioner of Education. 469 
(i) The council shall develop a proposal to allow social impact bonds 470 
to be issued by the state to support public schools located in 471 
community impact zones. Not later than February 1, 2020, the 472 
Secretary of the Office of Policy and Management shall submit a 473 
report, in accordance with the provisions of section 11-4a of the general 474     
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statutes, to the General Assembly, setting forth the proposal and 475 
including recommendations on ways to leverage the federal qualified 476 
opportunity zones program to support such public schools. 477 
(j) (1) The council may cause to have conducted an external, 478 
independent audit of any community development corporation or 479 
community development credit union. 480 
(2) The council may request the Auditors of Public Accounts to 481 
perform, and said auditors shall perform, audits and other related 482 
evaluations to facilitate the council's responsibilities established under 483 
sections 1 to 4, inclusive, of this act. 484 
(k) Not later than February 1, 2022, and annually thereafter, the 485 
council shall submit a report to the Governor and to the General 486 
Assembly, in accordance with the provisions of section 11-4a of the 487 
general statutes. Such report shall include, but not be limited to, a list 488 
of the community development corporations, community 489 
development credit unions and community impact zones designated 490 
to date, a summary of the programs, services, activities and efforts 491 
undertaken by such corporations and credit unions pursuant to 492 
sections 1 and 2 of this act and the disbursements made from the 493 
Community Development Corporation Trust Fund to support such 494 
programs, services, activities and efforts. 495 
Sec. 4. (NEW) (Effective from passage) (a) There is established a fund 496 
to be known as the "Community Development Corporation Trust 497 
Fund". The fund shall contain any moneys required by law to be 498 
deposited in the fund and shall be held in trust separate and apart 499 
from all other moneys, funds and accounts. Investment earnings 500 
credited to the assets of the fund shall become part of the assets of said 501 
fund. Any balance remaining in the fund at the end of any fiscal year 502 
shall be carried forward in the fund for the fiscal year next succeeding. 503 
Moneys in the fund shall be expended by the community development 504 
corporation oversight council established pursuant to section 3 of this 505     
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act to be used for the purposes set forth in sections 1 and 2 of this act. 506 
(b) The Treasurer shall invest the amounts on deposit in the fund in 507 
a manner reasonable and appropriate to achieve the objectives of the 508 
fund, exercising the discretion and care of a prudent person in similar 509 
circumstances with similar objectives. The Treasurer shall give due 510 
consideration to rate of return, risk, term or maturity, diversification of 511 
the total portfolio within the fund, liquidity, the projected 512 
disbursements and expenditures, and the expected payments, 513 
deposits, contributions and gifts to be received. The Treasurer shall not 514 
require the fund to invest directly in obligations of the state or any 515 
political subdivision of the state or in any investment or other fund 516 
administered by the Treasurer. The assets of the fund shall be 517 
continuously invested and reinvested in a manner consistent with the 518 
objectives of the fund until disbursed for the purposes set forth in 519 
sections 1 and 2 of this act. 520 
(c) On or before December thirty-first, annually, the Treasurer shall 521 
submit a financial report, in accordance with the provisions of section 522 
11-4a of the general statutes, to the community development 523 
corporation oversight council and the joint standing committee of the 524 
General Assembly having cognizance of matters relating to finance, 525 
revenue and bonding, setting forth the receipts, disbursements, assets, 526 
investments, liabilities and administrative costs of the fund for the 527 
prior fiscal year. 528 
Sec. 5. (NEW) (Effective from passage) (a) (1) Each entity that (A) is 529 
exempt from paying property tax pursuant to Section 501(c) of the 530 
Internal Revenue Code of 1986, or any subsequent corresponding 531 
internal revenue code of the United States, as amended from time to 532 
time, including a community development corporation described in 533 
section 1 of this act, and (B) (i) owns college or hospital property, as 534 
described in subsection (a) of section 12-20a of the general statutes, that 535 
is subject to the grants in lieu of taxes program under section 12-18b of 536 
the general statutes, or (ii) maintains a pension fund, endowment fund 537     
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or other significant savings fund or account, shall pay a fee annually to 538 
the Treasurer for deposit in the community development account 539 
established under subsection (d) of this section. 540 
(2) Such fee shall be equal to twenty-five per cent of the amount of 541 
the property tax, calculated annually, that the entity would have paid 542 
on such real property at the mill rate applicable for each assessment 543 
year. Such payment shall be accompanied by a form, prescribed by the 544 
Treasurer, that includes the name and address of the entity, the 545 
calculated amount, the amount of the payment and any other 546 
information the Treasurer requires for the purpose of this subsection. 547 
(3) On and after the date the community development corporation 548 
oversight council, established under section 3 of this act, designates 549 
community impact zones in accordance with the provisions of said 550 
section, any entity paying the fee pursuant to this subsection may 551 
specify to the Treasurer the community impact zone within the 552 
municipality in which the real property is located to which such fee 553 
payment shall be directed. 554 
(b) In addition to the entities specified under subsection (a) of this 555 
section, each municipality and the state shall pay the fee calculated 556 
pursuant to subdivision (2) of subsection (a) of this section, except that 557 
the state shall calculate its fee payment based on the average mill rate 558 
of all municipalities in the state. 559 
(c) Except as specified under subdivision (3) of subsection (a) of this 560 
section and subdivision (3) of this subsection, the Treasurer shall 561 
annually disburse each fee payment to the community development 562 
credit union designated pursuant to section 2 of this act that is located 563 
in the distressed municipality, as defined in section 32-9p of the 564 
general statutes, within which the real property described under 565 
subdivision (1) of subsection (a) of this section is located. 566 
(1) If no such credit union has been designated yet for such 567 
municipality, the fee under subsection (a) of this section shall not be 568     
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required to be paid by the entity or municipality. 569 
(2) If (A) a designated community development credit union elects 570 
to be removed from or is removed from such designation and no 571 
replacement has been designated, or (B) such real property is not 572 
located within a distressed municipality, the Treasurer, in consultation 573 
with the community development corporation oversight council, may 574 
(i) disburse fees paid by the entity whose real property is located 575 
within such municipality to all community development credit unions 576 
located in community impact zones within another municipality, or (ii) 577 
transfer such fees to an evergreen account within the Community 578 
Development Corporation Trust Fund established under section 4 of 579 
this act. 580 
(3) The Treasurer shall disburse annually each fee payment (A) 581 
made by a municipality to the community development credit union 582 
located within such municipality, and (B) made by the state to all 583 
community development credit unions in the state in equal amounts. 584 
(d) Each community development credit union that receives fee 585 
payments made pursuant to subsection (a) of this section shall 586 
administer individual accounts for each entity making such payments 587 
and shall invest such payments in a manner determined by such credit 588 
union, provided any returns generated by investing such payments 589 
shall be distributed annually as follows: (1) One-sixth shall be 590 
deposited in an evergreen account within the Community 591 
Development Corporation Trust Fund established under section 4 of 592 
this act, to be continually reinvested; (2) one-third shall be returned to 593 
the entity that remitted payments pursuant to subdivision (1) of 594 
subsection (a) of this section, provided an entity may elect to reinvest 595 
such return with such credit union; and (3) one-half shall be made 596 
available for disbursements to community development corporations 597 
and community development credit unions for eligible programs, 598 
services, activities and efforts approved by the community 599 
development corporation oversight council. 600     
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(e) There is established an account to be known as the "community 601 
development account" which shall be a separate, nonlapsing account 602 
within the General Fund. The account shall contain any moneys 603 
required by law to be deposited in the account. Moneys in the account 604 
shall be expended by Treasurer, in consultation with the community 605 
development corporation oversight council established under section 3 606 
of this act, in accordance with the provisions of this section. 607 
Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 608 
(1) (A) "Cannabis" means (i) all parts of any plant or species of the 609 
genus cannabis or any infra specific taxon thereof, whether growing or 610 
not, (ii) the seeds thereof, (iii) the resin extracted from any part of the 611 
plant, and (iv) every compound, manufacture, salt, derivative, mixture 612 
or preparation of such plant, its seeds or resin. "Cannabis" includes 613 
cannabinon, cannabinol and cannabidiol. 614 
(B) "Cannabis" does not include (i) the mature stalks of such plant, 615 
(ii) fiber produced from such stalks, (iii) oil or cake made from the 616 
seeds of such plant, (iv) any other compound, manufacture, salt, 617 
derivative, mixture or preparation of such mature stalks except the 618 
resin extracted therefrom, (v) fiber, oil, or cake, (vi) the sterilized seed 619 
of such plant, which is incapable of germination, (vii) industrial hemp, 620 
as defined in 7 USC 5940, as amended from time to time, or (viii) 621 
marijuana cultivated or sold for palliative use pursuant to chapter 420f 622 
of the general statutes. 623 
(2) "Cannabis product" means a cannabis concentrate or a product 624 
that contains cannabis, which may be combined with other 625 
ingredients, and is intended for use or consumption. Cannabis 626 
concentrate includes tinctures and extracts; 627 
(3) "Cannabis cultivation facility" means a facility licensed by the 628 
Cannabis Commission to cultivate, prepare and package cannabis and 629 
sell cannabis to cannabis product manufacturing facilities, cannabis 630 
retailers and other cannabis cultivation facilities; 631     
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(4) "Cannabis product manufacturing facility" means a facility 632 
licensed by the Cannabis Commission to purchase cannabis from 633 
cannabis cultivation facilities, manufacture, prepare and package 634 
cannabis products and sell cannabis and cannabis products to cannabis 635 
retailers and other cannabis product manufacturing facilities; 636 
(5) "Cannabis retailer" means a person licensed by the Cannabis 637 
Commission to purchase cannabis from cannabis cultivation facilities 638 
as well as to purchase cannabis and cannabis products from cannabis 639 
product manufacturing facilities and to sell cannabis and cannabis 640 
products to consumers;  641 
(6) "Consumer" means an individual who is twenty-one years of age 642 
or older; and 643 
(7) "Cannabis Commission" means the commission established 644 
under section 2 of house bill 7371 of the current session. 645 
(b) (1) On and after the date the Cannabis Commission first issues a 646 
license to a cannabis cultivation facility, there is imposed a tax on such 647 
facilities on the first sale of cannabis within the state at the rate of 648 
thirty-five dollars per ounce of cannabis flowers and thirteen dollars 649 
and fifty cents per ounce of cannabis trim. 650 
(2) Each cannabis cultivation facility making such sales shall file 651 
with the Commissioner of Revenue Services, on or before the last day 652 
of each calendar quarter, a return for the calendar quarter immediately 653 
preceding. Such returns shall be in such form and contain such 654 
information as the commissioner prescribes, and shall be accompanied 655 
by a payment of the amount of the tax shown to be due thereon. 656 
(3) The commissioner shall deposit the amounts received by the 657 
state from the tax imposed under subdivision (1) of this subsection into 658 
the Community Development Corporation Trust Fund established 659 
under section 4 of this act. 660     
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(c) If any person fails to pay the amount of tax reported due on its 661 
report within the time specified under this section, there shall be 662 
imposed a penalty equal to ten per cent of such amount due and 663 
unpaid, or fifty dollars, whichever is greater. Such amount shall bear 664 
interest at the rate of one per cent per month or fraction thereof, from 665 
the due date of such tax until the date of payment. Subject to the 666 
provisions of section 12-3a of the general statutes, the commissioner 667 
may waive all or part of the penalties provided under this section 668 
when it is proven to the commissioner's satisfaction that the failure to 669 
pay any tax was due to reasonable cause and was not intentional or 670 
due to neglect. 671 
(d) Each person, other than a cannabis cultivation facility, who is 672 
required, on behalf of such facility, to collect, truthfully account for 673 
and pay over a tax imposed on such facility under this section and 674 
who wilfully fails to collect, truthfully account for and pay over such 675 
tax or who wilfully attempts in any manner to evade or defeat the tax 676 
or the payment thereof, shall, in addition to other penalties provided 677 
by law, be liable for a penalty equal to the total amount of the tax 678 
evaded, or not collected, or not accounted for and paid over, including 679 
any penalty or interest attributable to such wilful failure to collect or 680 
truthfully account for and pay over such tax or such wilful attempt to 681 
evade or defeat such tax, provided such penalty shall only be imposed 682 
against such person in the event that such tax, penalty or interest 683 
cannot otherwise be collected from such facility. The amount of such 684 
penalty with respect to which a person may be personally liable under 685 
this section shall be collected in accordance with the provisions of 686 
section 12-555a of the general statutes and any amount so collected 687 
shall be allowed as a credit against the amount of such tax, penalty or 688 
interest due and owing from the facility. The dissolution of the facility 689 
shall not discharge any person in relation to any personal liability 690 
under this section for wilful failure to collect or truthfully account for 691 
and pay over such tax or for a wilful attempt to evade or defeat such 692 
tax prior to dissolution, except as otherwise provided in this section. 693     
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For purposes of this section, "person" includes any individual, 694 
corporation, limited liability company or partnership and any officer 695 
or employee of any corporation, including a dissolved corporation, 696 
and a member or employee of any partnership or limited liability 697 
company who, as such officer, employee or member, is under a duty to 698 
file a tax return under this section on behalf of a cannabis cultivation 699 
facility or to collect or truthfully account for and pay over a tax 700 
imposed under this section on behalf of such facility. 701 
(e) No tax credit or credits shall be allowable against the tax 702 
imposed under this section. 703 
(f) The provisions of sections 12-551 to 12-554, inclusive, and section 704 
12-555a of the general statutes shall apply to the provisions of this 705 
section in the same manner and with the same force and effect as if the 706 
language of said sections had been incorporated in full into this section 707 
and had expressly referred to the tax under this section, except to the 708 
extent that any provision is inconsistent with a provision in this 709 
section. 710 
(g) The commissioner may adopt regulations, in accordance with 711 
the provisions of chapter 54 of the general statutes, to implement the 712 
provisions of this section. 713 
(h) At the close of each fiscal year in which the tax imposed under 714 
the provisions of this section are received by the commissioner, the 715 
Comptroller is authorized to record as revenue for such fiscal year the 716 
amounts of such tax that are received by the commissioner not later 717 
than five business days from the last day of July immediately 718 
following the end of such fiscal year. 719 
Sec. 7. (NEW) (Effective from passage) (a) As used in this section, (1) 720 
"cannabis", "cannabis product", "cannabis retailer" and "Cannabis 721 
Commission" have the same meanings as provided in section 6 of this 722 
act, and (2) "municipality" means any town, city or borough, 723 
consolidated town and city or consolidated town and borough. 724     
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(b) (1) On and after the date the Cannabis Commission first issues a 725 
license to a cannabis retailer, there is imposed a local sales tax at the 726 
rate of three per cent on the sale of all cannabis and cannabis products. 727 
Such tax shall be in addition to the tax applicable to such sales under 728 
section 12-408 of the general statutes, as amended by this act. 729 
(2) Each cannabis retailer making such sales shall file with the 730 
commissioner, on or before the last day of each calendar quarter, a 731 
return for the calendar quarter immediately preceding. Such returns 732 
shall be in such form and contain such information as the 733 
commissioner prescribes and shall indicate the municipality in which 734 
such sales occurred, and shall be accompanied by a payment of the 735 
total amount of tax shown to be due thereon. 736 
(c) The commissioner shall deposit any local sales tax collected 737 
pursuant to subsection (b) of this section into the municipal cannabis 738 
revenue account established under subsection (d) of this section. 739 
(d) There is established an account to be known as the "municipal 740 
cannabis revenue account" which shall be a separate account within 741 
the General Fund. The account shall contain any moneys required by 742 
law to be deposited in the account. Moneys in the account shall be 743 
expended by the Commissioner of Revenue Services for the purpose of 744 
providing moneys in accordance with this section to municipalities in 745 
which cannabis retailers are selling cannabis and cannabis products to 746 
consumers. 747 
(e) (1) The commissioner shall maintain (A) an accounting of all 748 
sums deposited in the account, aggregated by municipality, (B) a 749 
listing of sums remitted by each cannabis retailer, and (C) such other 750 
information as the commissioner deems necessary for the purposes of 751 
this section. 752 
(2) Commencing in the second calendar quarter following the initial 753 
deposit into the account, the commissioner shall distribute on a 754 
quarterly basis a sum, calculated on a point-of-sale basis, to each 755     
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LCO No. 7328   	26 of 39 
 
municipality in which a cannabis retailer is located and for which a 756 
point-of-sale can be determined. Any moneys remaining in the account 757 
at the close of the fiscal year for which no point-of-sale can be 758 
determined shall be transferred to the Community Development 759 
Corporation Trust Fund established under section 4 of this act. 760 
(3) The commissioner shall make available to each municipality in 761 
which a cannabis retailer is located any information concerning such 762 
municipality that is maintained under subdivision (1) of this 763 
subsection. 764 
(f) If any person fails to pay the amount of tax reported due on its 765 
report within the time specified under this section, there shall be 766 
imposed a penalty equal to ten per cent of such amount due and 767 
unpaid, or fifty dollars, whichever is greater. Such amount shall bear 768 
interest at the rate of one per cent per month or fraction thereof, from 769 
the due date of such tax until the date of payment. Subject to the 770 
provisions of section 12-3a of the general statutes, the commissioner 771 
may waive all or part of the penalties provided under this section 772 
when it is proven to the commissioner's satisfaction that the failure to 773 
pay any tax was due to reasonable cause and was not intentional or 774 
due to neglect. 775 
(g) Each person, other than a cannabis retailer, who is required, on 776 
behalf of such retailer, to collect, truthfully account for and pay over a 777 
tax imposed on such retailer under this section and who wilfully fails 778 
to collect, truthfully account for and pay over such tax or who wilfully 779 
attempts in any manner to evade or defeat the tax or the payment 780 
thereof, shall, in addition to other penalties provided by law, be liable 781 
for a penalty equal to the total amount of the tax evaded, or not 782 
collected, or not accounted for and paid over, including any penalty or 783 
interest attributable to such wilful failure to collect or truthfully 784 
account for and pay over such tax or such wilful attempt to evade or 785 
defeat such tax, provided such penalty shall only be imposed against 786 
such person in the event that such tax, penalty or interest cannot 787     
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otherwise be collected from such retailer. The amount of such penalty 788 
with respect to which a person may be personally liable under this 789 
section shall be collected in accordance with the provisions of section 790 
12-555a of the general statutes and any amount so collected shall be 791 
allowed as a credit against the amount of such tax, penalty or interest 792 
due and owing from the retailer. The dissolution of the retailer shall 793 
not discharge any person in relation to any personal liability under this 794 
section for wilful failure to collect or truthfully account for and pay 795 
over such tax or for a wilful attempt to evade or defeat such tax prior 796 
to dissolution, except as otherwise provided in this section. For 797 
purposes of this section, "person" includes any individual, corporation, 798 
limited liability company or partnership and any officer or employee 799 
of any corporation, including a dissolved corporation, and a member 800 
or employee of any partnership or limited liability company who, as 801 
such officer, employee or member, is under a duty to file a tax return 802 
under this section on behalf of a cannabis retailer or to collect or 803 
truthfully account for and pay over a tax imposed under this section 804 
on behalf of such retailer. 805 
(h) No tax credit or credits shall be allowable against the tax 806 
imposed under this section. 807 
(i) The provisions of sections 12-551 to 12-554, inclusive, and section 808 
12-555a of the general statutes shall apply to the provisions of this 809 
section in the same manner and with the same force and effect as if the 810 
language of said sections had been incorporated in full into this section 811 
and had expressly referred to the tax under this section, except to the 812 
extent that any provision is inconsistent with a provision in this 813 
section. 814 
(j) The commissioner may adopt regulations, in accordance with the 815 
provisions of chapter 54 of the general statutes, to implement the 816 
provisions of this section. 817 
(k) At the close of each fiscal year in which the tax imposed under 818     
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the provisions of this section are received by the commissioner, the 819 
Comptroller is authorized to record as revenue for such fiscal year the 820 
amounts of such tax that are received by the commissioner not later 821 
than five business days from the last day of July immediately 822 
following the end of such fiscal year. 823 
Sec. 8. Subdivision (1) of section 12-408 of the general statutes is 824 
repealed and the following is substituted in lieu thereof (Effective from 825 
passage): 826 
(1) (A) For the privilege of making any sales, as defined in 827 
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 828 
for a consideration, a tax is hereby imposed on all retailers at the rate 829 
of six and thirty-five-hundredths per cent of the gross receipts of any 830 
retailer from the sale of all tangible personal property sold at retail or 831 
from the rendering of any services constituting a sale in accordance 832 
with subdivision (2) of subsection (a) of section 12-407, except, in lieu 833 
of said rate, [of six and thirty-five-hundredths per cent,] the rates 834 
provided in subparagraphs (B) to (H), inclusive, of this subdivision; 835 
(B) (i) At a rate of fifteen per cent with respect to each transfer of 836 
occupancy, from the total amount of rent received by a hotel or 837 
lodging house for the first period not exceeding thirty consecutive 838 
calendar days; 839 
(ii) At a rate of eleven per cent with respect to each transfer of 840 
occupancy, from the total amount of rent received by a bed and 841 
breakfast establishment for the first period not exceeding thirty 842 
consecutive calendar days; 843 
(C) With respect to the sale of a motor vehicle to any individual who 844 
is a member of the armed forces of the United States and is on full-time 845 
active duty in Connecticut and who is considered, under 50 App USC 846 
574, a resident of another state, or to any such individual and the 847 
spouse thereof, at a rate of four and one-half per cent of the gross 848 
receipts of any retailer from such sales, provided such retailer requires 849     
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LCO No. 7328   	29 of 39 
 
and maintains a declaration by such individual, prescribed as to form 850 
by the commissioner and bearing notice to the effect that false 851 
statements made in such declaration are punishable, or other evidence, 852 
satisfactory to the commissioner, concerning the purchaser's state of 853 
residence under 50 App USC 574; 854 
(D) (i) With respect to the sales of computer and data processing 855 
services occurring on or after July 1, 2001, at the rate of one per cent, 856 
and (ii) with respect to sales of Internet access services, on and after 857 
July 1, 2001, such services shall be exempt from such tax; 858 
(E) (i) With respect to the sales of labor that is otherwise taxable 859 
under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 860 
section 12-407 on existing vessels and repair or maintenance services 861 
on vessels occurring on and after July 1, 1999, such services shall be 862 
exempt from such tax; 863 
(ii) With respect to the sale of a vessel, a motor for a vessel or a 864 
trailer used for transporting a vessel, at the rate of two and ninety-865 
nine-hundredths per cent, except that the sale of a vessel shall be 866 
exempt from such tax if such vessel is docked in this state for sixty or 867 
fewer days in a calendar year; 868 
(F) With respect to patient care services for which payment is 869 
received by the hospital on or after July 1, 1999, and prior to July 1, 870 
2001, at the rate of five and three-fourths per cent and on and after July 871 
1, 2001, such services shall be exempt from such tax; 872 
(G) With respect to the rental or leasing of a passenger motor 873 
vehicle for a period of thirty consecutive calendar days or less, at a rate 874 
of nine and thirty-five-hundredths per cent; 875 
(H) With respect to the sale of (i) a motor vehicle for a sales price 876 
exceeding fifty thousand dollars, at a rate of seven and three-fourths 877 
per cent on the entire sales price, (ii) jewelry, whether real or imitation, 878 
for a sales price exceeding five thousand dollars, at a rate of seven and 879     
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three-fourths per cent on the entire sales price, and (iii) an article of 880 
clothing or footwear intended to be worn on or about the human body, 881 
a handbag, luggage, umbrella, wallet or watch for a sales price 882 
exceeding one thousand dollars, at a rate of seven and three-fourths 883 
per cent on the entire sales price. For purposes of this subparagraph, 884 
"motor vehicle" has the meaning provided in section 14-1, but does not 885 
include a motor vehicle subject to the provisions of subparagraph (C) 886 
of this subdivision, a motor vehicle having a gross vehicle weight 887 
rating over twelve thousand five hundred pounds, or a motor vehicle 888 
having a gross vehicle weight rating of twelve thousand five hundred 889 
pounds or less that is not used for private passenger purposes, but is 890 
designed or used to transport merchandise, freight or persons in 891 
connection with any business enterprise and issued a commercial 892 
registration or more specific type of registration by the Department of 893 
Motor Vehicles; 894 
(I) The rate of tax imposed by this chapter shall be applicable to all 895 
retail sales upon the effective date of such rate, except that a new rate 896 
which represents an increase in the rate applicable to the sale shall not 897 
apply to any sales transaction wherein a binding sales contract without 898 
an escalator clause has been entered into prior to the effective date of 899 
the new rate and delivery is made within ninety days after the effective 900 
date of the new rate. For the purposes of payment of the tax imposed 901 
under this section, any retailer of services taxable under subdivision 902 
(37) of subsection (a) of section 12-407, who computes taxable income, 903 
for purposes of taxation under the Internal Revenue Code of 1986, or 904 
any subsequent corresponding internal revenue code of the United 905 
States, as from time to time amended, on an accounting basis which 906 
recognizes only cash or other valuable consideration actually received 907 
as income and who is liable for such tax only due to the rendering of 908 
such services may make payments related to such tax for the period 909 
during which such income is received, without penalty or interest, 910 
without regard to when such service is rendered; 911 
(J) (i) For calendar quarters ending on or after September 30, 2019, 912     
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the commissioner shall deposit into the regional planning incentive 913 
account, established pursuant to section 4-66k, six and seven-tenths 914 
per cent of the amounts received by the state from the tax imposed 915 
under subparagraph (B) of this subdivision and ten and seven-tenths 916 
per cent of the amounts received by the state from the tax imposed 917 
under subparagraph (G) of this subdivision; 918 
(ii) For calendar quarters ending on or after September 30, 2018, the 919 
commissioner shall deposit into the Tourism Fund established under 920 
section 10-395b ten per cent of the amounts received by the state from 921 
the tax imposed under subparagraph (B) of this subdivision; 922 
(K) For calendar months commencing on or after July 1, 2021, the 923 
commissioner shall deposit into the municipal revenue sharing 924 
account established pursuant to section 4-66l seven and nine-tenths per 925 
cent of the amounts received by the state from the tax imposed under 926 
subparagraph (A) of this subdivision; [and] 927 
(L) (i) For calendar months commencing on or after July 1, 2017, the 928 
commissioner shall deposit into the Special Transportation Fund 929 
established under section 13b-68 seven and nine-tenths per cent of the 930 
amounts received by the state from the tax imposed under 931 
subparagraph (A) of this subdivision; 932 
(ii) For calendar months commencing on or after July 1, 2018, but 933 
prior to July 1, 2019, the commissioner shall deposit into the Special 934 
Transportation Fund established under section 13b-68 eight per cent of 935 
the amounts received by the state from the tax imposed under 936 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 937 
vehicle; 938 
(iii) For calendar months commencing on or after July 1, 2019, but 939 
prior to July 1, 2020, the commissioner shall deposit into the Special 940 
Transportation Fund established under section 13b-68 thirty-three per 941 
cent of the amounts received by the state from the tax imposed under 942 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 943     
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vehicle; 944 
(iv) For calendar months commencing on or after July 1, 2020, but 945 
prior to July 1, 2021, the commissioner shall deposit into the Special 946 
Transportation Fund established under section 13b-68 fifty-six per cent 947 
of the amounts received by the state from the tax imposed under 948 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 949 
vehicle; 950 
(v) For calendar months commencing on or after July 1, 2021, but 951 
prior to July 1, 2022, the commissioner shall deposit into the Special 952 
Transportation Fund established under section 13b-68 seventy-five per 953 
cent of the amounts received by the state from the tax imposed under 954 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 955 
vehicle; and 956 
(vi) For calendar months commencing on or after July 1, 2022, the 957 
commissioner shall deposit into the Special Transportation Fund 958 
established under section 13b-68 one hundred per cent of the amounts 959 
received by the state from the tax imposed under subparagraphs (A) 960 
and (H) of this subdivision on the sale of a motor vehicle; and 961 
(M) For calendar quarters ending on or after the initial deposit of the 962 
tax on the sale of cannabis and cannabis products, as both terms are 963 
defined in section 6 of this act, the commissioner shall deposit into the 964 
Community Development Corporation Trust Fund established under 965 
section 4 of this act one hundred per cent of the amounts received by 966 
the state from the tax imposed under this section. 967 
Sec. 9. Section 36a-455a of the general statutes is repealed and the 968 
following is substituted in lieu thereof (Effective from passage): 969 
A Connecticut credit union may: 970 
(1) Transact a general credit union business and exercise by its 971 
governing board or duly authorized members of senior management, 972     
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subject to applicable law, all such incidental powers as are consistent 973 
with its purposes. The express powers authorized for a Connecticut 974 
credit union under this section do not preclude the existence of 975 
additional powers deemed to be incidental to the transaction of a 976 
general credit union business pursuant to this subdivision; 977 
(2) (A) Issue shares to its members and receive payments on shares 978 
from its members and from those nonmembers specified in subsection 979 
(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 980 
36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 981 
receive deposits of members and nonmembers subject to provisions of 982 
sections 36a-456a and 36a-456b, (C) reduce the amount of its member 983 
and nonmember shares and deposits, (D) expel members and cancel 984 
shares in accordance with section 36a-439a, and (E) provide check 985 
cashing and wire and electronic transfer services to nonmembers who 986 
are within such credit union's field of membership; 987 
(3) Make and use its best efforts to make secured and unsecured 988 
loans and other extensions of credit to its members in accordance with 989 
section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 990 
(4) Invest its funds in accordance with section 36a-459a; 991 
(5) Declare and pay dividends in accordance with sections 36a-441a 992 
and 36a-456c, and pay interest refunds to borrowers; 993 
(6) Act as a finder or agent for the sale of insurance and fixed and 994 
variable rate annuities directly, sell insurance and such annuities 995 
indirectly through a Connecticut credit union service organization, or 996 
enter into arrangements with third-party marketing organizations for 997 
the sale by such third-party marketing organizations of insurance or 998 
such annuities on the premises of the Connecticut credit union or to 999 
members of the Connecticut credit union, provided: (A) Such 1000 
insurance and annuities are issued or purchased by or from an 1001 
insurance company licensed in accordance with section 38a-41; and (B) 1002 
the Connecticut credit union, Connecticut credit union service 1003     
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organization or third-party marketing organization, and any officer 1004 
and employee thereof, shall be licensed as required by section 38a-769 1005 
before engaging in any of the activities authorized by this subdivision. 1006 
As used in this subdivision, "annuities" and "insurance" have the same 1007 
meanings as set forth in section 38a-41, except that "insurance" does 1008 
not include title insurance. The provisions of this subdivision do not 1009 
authorize a Connecticut credit union or Connecticut credit union 1010 
service organization to underwrite insurance or annuities; 1011 
(7) Borrow money to an amount not exceeding fifty per cent of the 1012 
total assets of the Connecticut credit union provided the credit union 1013 
shall give prior notice to the commissioner in writing of its intention to 1014 
borrow amounts in excess of thirty-five per cent of its total assets; 1015 
(8) Act as fiscal agent for the federal government, this state or any 1016 
agency or political subdivision thereof; 1017 
(9) Provide loan processing, loan servicing, member check and 1018 
money order cashing services, disbursement of share withdrawals and 1019 
loan proceeds, money orders, internal audits, automated teller 1020 
machine services, ACH and wire transfer services, prepaid debit cards, 1021 
payroll cards, digital wallet services, coin and currency services, 1022 
remote deposit capture services, electronic banking and other similar 1023 
services to other Connecticut credit unions, federal credit unions, 1024 
federally insured financial institutions and out-of-state credit unions; 1025 
(10) Provide finder services to its members, including the offering of 1026 
third party products and services through the sale of advertising space 1027 
on its web site, account statements and receipts, and the sale of 1028 
statistical or consumer financial information to outside vendors in 1029 
accordance with sections 36a-40 to 36a-45, inclusive, in order to 1030 
facilitate the sale of such products to the members of such Connecticut 1031 
credit union; 1032 
(11) With the prior approval of the commissioner, exercise fiduciary 1033 
powers; 1034     
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(12) Maintain and rent safe deposit boxes within suitably 1035 
constructed vaults, provided the Connecticut credit union has 1036 
adequate insurance coverage for losses related to such rental; 1037 
(13) Provide certification services, including notary services, 1038 
signature guaranties, certification of electronic signatures and share 1039 
draft certifications; 1040 
(14) Act as agent (A) in the collection of taxes for any qualified 1041 
treasurer of any taxing district or qualified collector of taxes, or (B) for 1042 
any electric distribution, gas, water or telephone company operating 1043 
within this state in receiving moneys due such company for utility 1044 
services furnished by it; 1045 
(15) Issue and sell securities which (A) are guaranteed by the 1046 
Federal National Mortgage Association or any other agency or 1047 
instrumentality authorized by state or federal law to create a 1048 
secondary market with respect to extensions of credit of the type 1049 
originated by the Connecticut credit union, or (B) subject to the 1050 
approval of the commissioner, relate to extensions of credit originated 1051 
by the Connecticut credit union and are guaranteed or insured by a 1052 
financial guaranty insurance company or comparable private entity; 1053 
(16) Establish a charitable fund, either in the form of a charitable 1054 
trust or a nonprofit corporation to assist in making charitable 1055 
contributions, provided (A) the trust or nonprofit corporation is 1056 
exempt from federal income taxation and may accept charitable 1057 
contributions under Section 501 of the Internal Revenue Code of 1986, 1058 
or any subsequent corresponding internal revenue code of the United 1059 
States, as from time to time amended, (B) the trust or nonprofit 1060 
corporation's operations are disclosed fully to the commissioner upon 1061 
request, and (C) the trust department of the credit union or one or 1062 
more directors or members of senior management of the credit union 1063 
act as trustees or directors of the fund; 1064 
(17) In the discretion of a majority of its governing board, make 1065     
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contributions or gifts to or for the use of any corporation, trust or 1066 
community chest, fund or foundation created or organized under the 1067 
laws of the United States or of this state and organized and operated 1068 
exclusively for charitable, educational or public welfare purposes, or of 1069 
any hospital which is located in this state and which is exempt from 1070 
federal income taxes and to which contributions are deductible under 1071 
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1072 
corresponding internal revenue code of the United States, as from time 1073 
to time amended; 1074 
(18) Subject to the provisions of section 36a-455b, sell, pledge or 1075 
assign any or all of its outstanding extensions of credit to any other 1076 
lending institution, credit union service organization or quasi-1077 
governmental entity and any government-sponsored enterprise, and 1078 
act as collecting, remitting and servicing agent in connection with any 1079 
such extension of credit and charge for its acts as agent. Any such 1080 
credit union may purchase the minimum amount of capital stock of 1081 
such entity or enterprise if required by that entity or enterprise to be 1082 
purchased in connection with the sale, pledge or assignment of 1083 
extensions of credit to that entity or enterprise and may hold and 1084 
dispose of such stock, provided that with respect to purchases of stock 1085 
of a credit union service organization, the Connecticut credit union 1086 
shall not exceed the limitations of section 36a-459a. A Connecticut 1087 
credit union may purchase one or more outstanding extensions of 1088 
credit from any other lending institution and any federally-recognized 1089 
Native American tribe, provided there exists a formal written 1090 
agreement with tribal government to permit the credit union to service 1091 
and collect on such extensions of credit; 1092 
(19) Subject to the provisions of section 36a-455b, sell a participating 1093 
interest in any or all of its outstanding extensions of credit to and 1094 
purchase a participating interest in any or all of the outstanding 1095 
extensions of credit of any financial institution or credit union service 1096 
organization pursuant to an appropriate written participation and 1097 
servicing agreement to be signed by all parties involved in such 1098     
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transaction; 1099 
(20) With the approval of the commissioner, join the Federal Home 1100 
Loan Bank System and borrow funds as provided under federal law; 1101 
(21) Subject to the provisions of section 36a-455b, sell all or part of 1102 
its assets, other than extensions of credit, to other lending institutions, 1103 
purchase all or part of the assets, other than extensions of credit, of 1104 
other lending institutions, and assume all or part of the shares and the 1105 
liabilities of any other credit union or out-of-state credit union; 1106 
(22) With the prior written approval of the commissioner, engage in 1107 
closely related activities, unless the commissioner determines that any 1108 
such activity shall be conducted by a credit union service organization 1109 
of the Connecticut credit union, utilizing such organizational, 1110 
structural or other safeguards as the commissioner may require, in 1111 
order to protect the Connecticut credit union from exposure to loss. As 1112 
used in this subdivision, "closely related activities" means those 1113 
activities that are closely related, convenient and necessary to the 1114 
business of a Connecticut credit union, are reasonably related to the 1115 
operation of a Connecticut credit union or are financial in nature 1116 
including, but not limited to, business and professional services, data 1117 
processing, courier and messenger services, credit-related activities, 1118 
consumer services, services related to real estate, financial consulting, 1119 
tax planning and preparation, community development activities, or 1120 
any activities reasonably related to such activities; 1121 
(23) Engage in any activity that a federal credit union or out-of-state 1122 
credit union may be authorized to engage in under state or federal law, 1123 
provided the Connecticut credit union file with the commissioner prior 1124 
written notice of its intention to engage in such activity. Such notice 1125 
shall include a description of the activity, a description of the financial 1126 
impact of the activity on the Connecticut credit union, citation of the 1127 
legal authority to engage in the activity under state or federal law, a 1128 
description of any limitations or restrictions imposed on such activity 1129     
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under state or federal law, and any other information that the 1130 
commissioner may require. The Connecticut credit union may engage 1131 
in any such activity unless the commissioner disapproves such activity 1132 
not later than thirty days after the notice is filed. The commissioner 1133 
may adopt regulations in accordance with chapter 54 to ensure that 1134 
any such activity is conducted in a safe and sound manner with 1135 
adequate consumer protections. The provisions of this subdivision do 1136 
not authorize a Connecticut credit union or a Connecticut credit union 1137 
service organization to sell title insurance; 1138 
(24) (A) Partner with a community development corporation, as 1139 
described in section 1 of this act, and be designated as a community 1140 
development credit union in accordance with the provisions of section 1141 
2 of this act, (B) if so designated, engage in any activity authorized for 1142 
a community development credit union under sections 1 and 2 of this 1143 
act, and (C) issue social impact bonds in accordance with subdivision 1144 
(5) of subsection (c) of section 2 of this act. 1145 
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 New section 
Sec. 5 from passage New section 
Sec. 6 from passage New section 
Sec. 7 from passage New section 
Sec. 8 from passage 12-408(1) 
Sec. 9 from passage 36a-455a 
 
Statement of Purpose:  
To implement certain community restoration and revitalization efforts 
through community development corporations, community 
development credit unions and community impact zones, using tax 
revenue from the sale of cannabis and cannabis products and deposits 
in lieu of taxes.  
     
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[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.]