Connecticut 2019 Regular Session

Connecticut Senate Bill SB01138 Compare Versions

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Version 2 (New)

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	3	+	LCO No. 7328 1 of 39
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7		-	General Assembly ~~Substitute~~ Bill No. 1138
	5	+	General Assembly Raised Bill No. 1138
8	6		January Session, 2019
	7	+	LCO No. 7328
9	8
10	9
	10	+	Referred to Committee on FINANCE, REVENUE AND
	11	+	BONDING
	12	+
	13	+
	14	+	Introduced by:
	15	+	(FIN)
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13	18
14	19		AN ACT CONCERNING CO MMUNITY RESTORATION FUNDS.
15	20		Be it enacted by the Senate and House of Representatives in General
16	21		Assembly convened:
17	22
18	23		Section 1. (NEW) (Effective from passage) (a) There are established 1
19	24		community development corporations, which shall use the revenue 2
20		-	from the taxes imposed under subsection (b) of section 6 of this act and 3
21		-	the portion of the tax received and retained by the state from sales 4
22		-	subject to the tax under subsection (b) of section 7 of this act, for the 5
23		-	community restoration and revitalization purposes set forth in this 6
24		-	section and section 2 of this act. Such moneys shall be disbursed by 7
25		-	and used in coordination with the community development 8
26		-	corporation oversight council established under section 3 of this act. 9
27		-	(b) (1) Any entity that is exempt from tax pursuant to Section 501(c) 10
28		-	of the Internal Revenue Code of 1986, or any subsequent 11
29		-	corresponding internal revenue code of the United States, as amended 12
30		-	from time to time, and is located in a distressed municipality, as 13
31		-	defined in section 32-9p of the general statutes, at the time such entity 14
32		-	submits an application for designation, may apply to the council to be 15
33		-	designated as a community development corporation. 16
34		-	(2) To be eligible to be designated as a community development 17
35		-	corporation, such entity shall: 18 Substitute Bill No. 1138
	25	+	from the tax imposed under subsection (b) of section 6 of this act and 3
	26	+	section 12-408 of the general statutes, as amended by this act, for the 4
	27	+	community restoration and revitalization purposes set forth in this 5
	28	+	section and section 2 of this act. Such moneys shall be disbursed by 6
	29	+	and used in coordination with the community development 7
	30	+	corporation oversight council established under section 3 of this act. 8
	31	+	(b) (1) Any entity that is exempt from tax pursuant to Section 501(c) 9
	32	+	of the Internal Revenue Code of 1986, or any subsequent 10
	33	+	corresponding internal revenue code of the United States, as amended 11
	34	+	from time to time, and is located in a distressed municipality, as 12
	35	+	defined in section 32-9p of the general statutes, at the time such entity 13
	36	+	submits an application for designation, may apply to the council to be 14
	37	+	designated as a community development corporation. 15
	38	+	Raised Bill No. 1138
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42		-	(A) (i) Have demonstrated effectiveness in, or have been formed for 19
43		-	the purpose of, building, attracting and retaining neighborhood 20
44		-	wealth, and (ii) provide financial, educational or related services to 21
45		-	support initiatives that concentrate investments in human capital and 22
46		-	infrastructure in a specific neighborhood or neighborhoods, with 23
47		-	measureable community revitalization achievements; 24
48		-	(B) Agree to focus all its efforts in the distressed municipality in 25
49		-	which it is located; 26
50		-	(C) Agree to establish or relocate its primary office in a community 27
51		-	impact zone within the municipality after such zones are designated 28
52		-	pursuant to section 3 of this act; and 29
53		-	(D) Agree to establish or relocate any auxiliary locations to within 30
54		-	the boundaries of the municipality in which the corporation is located. 31
55		-	(c) (1) Each community development corporation shall provide 32
56		-	programs, services and assistance or issue grants to support 33
57		-	community reinvestment strategies in the community impact zone in 34
58		-	which such corporation is located, including, but not limited to, the 35
59		-	following, in order of priority: 36
60		-	(A) Encouraging early childhood initiatives through the provision, 37
61		-	directly or in collaboration with other entities, of free or low-cost early 38
62		-	childhood education services to families that reside within the 39
63		-	community impact zone, without regard to family income level. Such 40
64		-	services shall include kindergarten preparedness and kindergarten 41
65		-	readiness assessments. The corporation may expand such services 42
66		-	beyond the community impact zone but within the municipality to 43
67		-	areas with poverty levels above the municipal average; 44
68		-	(B) Increasing achievement at public elementary and middle schools 45
69		-	located in the community impact zone. The corporation shall 46
70		-	coordinate with officials of such schools to submit grant applications to 47
71		-	the community development corporation oversight council to 48
72		-	supplement per-student funding for such schools to match or 49 Substitute Bill No. 1138
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	43	+
	44	+	(2) To be eligible to be designated as a community development 16
	45	+	corporation, such entity shall: 17
	46	+	(A) (i) Have demonstrated effectiveness in, or have been formed for 18
	47	+	the purpose of, building, attracting and retaining neighborhood 19
	48	+	wealth, and (ii) provide financial, educational or related services to 20
	49	+	support initiatives that concentrate investments in human capital and 21
	50	+	infrastructure in a specific neighborhood or neighborhoods, with 22
	51	+	measureable community revitalization achievements; 23
	52	+	(B) Agree to focus all its efforts in the distressed municipality in 24
	53	+	which it is located; 25
	54	+	(C) Agree to establish or relocate its primary office in a community 26
	55	+	impact zone within the municipality after such zones are designated 27
	56	+	pursuant to section 3 of this act; and 28
	57	+	(D) Agree to establish or relocate any auxiliary locations to within 29
	58	+	the boundaries of the municipality in which the corporation is located. 30
	59	+	(c) (1) Each community development corporation shall provide 31
	60	+	programs, services and assistance or issue grants to support 32
	61	+	community reinvestment strategies in the community impact zone in 33
	62	+	which such corporation is located, including, but not limited to, the 34
	63	+	following, in order of priority: 35
	64	+	(A) Encouraging early childhood initiatives through the provision, 36
	65	+	directly or in collaboration with other entities, of free or low-cost early 37
	66	+	childhood education services to families that reside within the 38
	67	+	community impact zone, without regard to family income level. Such 39
	68	+	services shall include kindergarten preparedness and kindergarten 40
	69	+	readiness assessments. The corporation may expand such services 41
	70	+	beyond the community impact zone but within the municipality to 42
	71	+	areas with poverty levels above the municipal average; 43
	72	+	(B) Increasing achievement at public elementary and middle schools 44
	73	+	Raised Bill No. 1138
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79		-	approach the highest levels of per-student funding at any elementary 50
80		-	or middle school in the state. Schools that receive such grants shall (i) 51
81		-	set goals to achieve scores in the top percentiles on the state-wide 52
82		-	mastery examination under section 10-14n of the general statutes. The 53
83		-	council shall set specific target goals for each school that receives a 54
84		-	grant pursuant to this subparagraph, and (ii) guarantee that a student 55
85		-	residing in the community impact zone will be able to attend that 56
86		-	specific school; 57
87		-	(C) Rebuilding community assets through: 58
88		-	(i) The construction, renovation or repair of neighborhood 59
89		-	structures or assets of economic or other community significance, 60
90		-	including, but not limited to, playgrounds, sidewalks, parks, 61
91		-	community centers, senior centers, public libraries, urban gardens and 62
92		-	green spaces. Only projects for structures or assets that are owned by 63
93		-	the federal, state or municipal government, the community 64
94		-	development corporation located in the community impact zone 65
95		-	where such structure or asset is located, the partnered community 66
96		-	development credit union, as described in section 2 of this act, or a 67
97		-	resident of the municipality in which such structure or asset is located 68
98		-	shall be eligible to receive funding under this subparagraph. The 69
99		-	corporation shall seek to train residents of the community impact zone 70
100		-	to perform some of the work such projects require, directly or 71
101		-	indirectly through partnerships with existing technical education and 72
102		-	apprenticeship programs and with other entities; and 73
103		-	(ii) The retention, sale or rental of such structures or assets after 74
104		-	completion, provided any sale shall be to a resident of the community 75
105		-	impact zone only. The partnered community development credit 76
106		-	union may develop a cooperative model for owning and renting such 77
107		-	structures or assets; 78
108		-	(D) Increasing owner-occupancy of residential buildings through: 79
109		-	(i) Tracking and undertaking efforts to increase the percentage of 80 Substitute Bill No. 1138
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	78	+
	79	+	located in the community impact zone. The corporation shall 45
	80	+	coordinate with school officials of such schools to submit grant 46
	81	+	applications to the community development corporation oversight 47
	82	+	council to supplement per-student funding for such schools to match 48
	83	+	or approach the highest levels of per-student funding at any 49
	84	+	elementary or middle school in the state. Schools that receive such 50
	85	+	grants shall (i) set goals to achieve scores in the top percentiles on the 51
	86	+	state-wide mastery examination under section 10-14n of the general 52
	87	+	statutes. The council shall set specific target goals for each school that 53
	88	+	receives a grant pursuant to this subparagraph, and (ii) guarantee that 54
	89	+	a student residing in the community impact zone will be able to attend 55
	90	+	that specific school; 56
	91	+	(C) Rebuilding community assets through: 57
	92	+	(i) The construction, renovation or repair of neighborhood 58
	93	+	structures or assets of economic or other community significance, 59
	94	+	including, but not limited to, playgrounds, sidewalks, parks, 60
	95	+	community centers, senior centers, public libraries, urban gardens and 61
	96	+	green spaces. Projects that receive funding under this subparagraph 62
	97	+	shall be owned by the federal, state or municipal government, the 63
	98	+	community development corporation located in the community impact 64
	99	+	zone where such project is located, the partnered community 65
	100	+	development credit union, as described in section 2 of this act, or a 66
	101	+	resident of the municipality in which such structure or asset is located. 67
	102	+	The corporation shall seek to train residents of the community impact 68
	103	+	zone to perform some of the work such projects require, directly or 69
	104	+	indirectly through partnerships with existing technical education and 70
	105	+	apprenticeship programs and with other entities; and 71
	106	+	(ii) The retention, sale or rental of such projects after completion, 72
	107	+	provided any sale shall be to a resident of the community impact zone 73
	108	+	only. The partnered community development credit union may 74
	109	+	develop a cooperative model for owning and renting such projects; 75
	110	+	Raised Bill No. 1138
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116		-	owner-occupied residential buildings in the community impact zone. 81
117		-	The corporation shall set five-year target percentages and shall 82
118		-	periodically evaluate and revise such target amounts; 83
119		-	(ii) The restoration and repair of multifamily rental buildings 84
120		-	located in the community impact zone to convert such buildings into 85
121		-	owner-occupied residential buildings or multifamily cooperative 86
122		-	buildings with at least one unit to be a rental unit. Only projects for 87
123		-	multifamily rental buildings owned by the community development 88
124		-	corporation located in the community impact zone, the partnered 89
125		-	community development credit union or a resident of the municipality 90
126		-	in which such building is located shall be eligible to receive funding 91
127		-	under this subparagraph. A multifamily rental building that is not 92
128		-	owned by such corporation, credit union or resident may be 93
129		-	considered for funding under this subparagraph, provided the owner 94
130		-	of such building agrees, in writing, to terms set forth by the 95
131		-	corporation that further the purposes of this section. The corporation 96
132		-	may promote participation in existing state and housing programs to 97
133		-	encourage owner occupancy; and 98
134		-	(iii) The retention, sale or rental of such buildings after completion, 99
135		-	provided any sale shall be to a resident of the community impact zone 100
136		-	only. The corporation or the partnered community development credit 101
137		-	union may develop a cooperative model for owning and renting such 102
138		-	buildings; 103
139		-	(E) Supporting pathways to home ownership through the offering 104
140		-	of home buyer education and financial literacy programs in 105
141		-	partnership with existing programs. All such partnerships shall be 106
142		-	joint efforts between the community development corporation and its 107
143		-	partnered community development credit union and each such credit 108
144		-	union may develop and offer subsidized or incentivized financial 109
145		-	products for individuals who participate in such programs; 110
146		-	(F) Creating pipelines to employment for residents of a community 111
147		-	impact zone through: 112 Substitute Bill No. 1138
	114	+	LCO No. 7328 4 of 39
	115	+
	116	+	(D) Increasing owner-occupancy of residential buildings through: 76
	117	+	(i) Tracking and undertaking efforts to increase the percentage of 77
	118	+	owner-occupied residential buildings in the community impact zone. 78
	119	+	The corporation shall set five-year target percentages and shall 79
	120	+	periodically evaluate and revise such target amounts; 80
	121	+	(ii) The restoration and repair of multifamily rental buildings 81
	122	+	located in the community impact zone to convert such buildings into 82
	123	+	owner-occupied residential buildings or multifamily cooperative 83
	124	+	buildings with at least one unit to be a rental unit. Projects that receive 84
	125	+	funding under this subparagraph shall be owned by the community 85
	126	+	development corporation located in the community impact zone, the 86
	127	+	partnered community development credit union or a resident of the 87
	128	+	municipality in which such project is located. A multifamily rental 88
	129	+	building that is not owned by such corporation, credit union or 89
	130	+	resident may be considered for funding under this subparagraph, 90
	131	+	provided the owner of such building agrees, in writing, to terms set 91
	132	+	forth by the corporation that further the purposes of this section. The 92
	133	+	corporation may promote participation in existing state and housing 93
	134	+	programs to encourage owner occupancy; and 94
	135	+	(iii) The retention, sale or rental of such buildings after completion, 95
	136	+	provided any sale shall be to a resident of the community impact zone 96
	137	+	only. The corporation or the partnered community development credit 97
	138	+	union may develop a cooperative model for owning and renting such 98
	139	+	buildings; 99
	140	+	(E) Supporting pathways to home ownership through the offering 100
	141	+	of home buyer education and financial literacy programs in 101
	142	+	partnership with existing programs. All such partnerships shall be 102
	143	+	joint efforts between the community development corporation and its 103
	144	+	partnered community development credit union and each such credit 104
	145	+	union may develop and offer subsidized or incentivized financial 105
	146	+	products for individuals who participate in such programs; 106
	147	+	Raised Bill No. 1138
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154		-	(i) The implementation of or participation in community work-113
155		-	based training programs, in consultation or coordination with other 114
156		-	organizations, including, but not limited to, the Workforce Investment 115
157		-	Boards. Such programs shall provide preapprenticeship or 116
158		-	apprenticeship opportunities by providing instruction or training to 117
159		-	increase literacy, mathematics and other technical, prevocational or 118
160		-	vocational skills and connecting workforce, economic development 119
161		-	and education systems with businesses and other stakeholders in the 120
162		-	community impact zone. All such efforts undertaken by a community 121
163		-	development corporation shall focus on the residents of the 122
164		-	community impact zone in which such corporation is located and on 123
165		-	businesses offering or carrying out training programs, in order of 124
166		-	priority, (I) within the community impact zone, (II) within the 125
167		-	municipality in which the community impact zone is located, or (III) 126
168		-	without the municipality; and 127
169		-	(ii) The placement of residents of the community impact zone with 128
170		-	businesses offering employment or on-the-job training that are, in 129
171		-	order of priority, (I) within the community impact zone, (II) within the 130
172		-	municipality in which the community impact zone is located, or (III) 131
173		-	without the municipality only after the opportunities under subclauses 132
174		-	(I) and (II) of this clause have been exhausted; 133
175		-	(G) Expanding access to programs at existing community centers or 134
176		-	senior centers that serve all residents of the community impact zone, 135
177		-	regardless of age, or converting such existing centers to centers that 136
178		-	serve all residents of the community impact zone, regardless of age; 137
179		-	and 138
180		-	(H) Providing municipal residents with low-cost transportation 139
181		-	options by developing or supporting transportation alternatives within 140
182		-	and between municipalities for travel to and from employment, home, 141
183		-	school, retail stores and entertainment venues. 142
184		-	(2) If the corporation has insufficient funds to execute to a high level 143
185		-	of quality all of the strategies set forth in subdivision (1) of this 144 Substitute Bill No. 1138
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	152	+
	153	+	(F) Creating pipelines to employment for residents of a community 107
	154	+	impact zone through: 108
	155	+	(i) The implementation of or participation in community work-109
	156	+	based training programs, in consultation or coordination with other 110
	157	+	organizations, including, but not limited to, the Workforce Investment 111
	158	+	Boards. Such programs shall provide preapprenticeship or 112
	159	+	apprenticeship opportunities by providing instruction or training to 113
	160	+	increase literacy, mathematics and other technical, prevocational or 114
	161	+	vocational skills and connecting workforce, economic development 115
	162	+	and education systems with businesses and other stakeholders in the 116
	163	+	community impact zone. All such efforts undertaken by a community 117
	164	+	development corporation shall focus on the residents of the 118
	165	+	community impact zone in which such corporation is located and on 119
	166	+	businesses offering or carrying out training programs, in order of 120
	167	+	priority, (I) within the community impact zone, (II) within the 121
	168	+	municipality in which the community impact zone is located, or (III) 122
	169	+	without the municipality; and 123
	170	+	(ii) The placement of residents of the community impact zone with 124
	171	+	businesses offering employment or on-the-job training that are, in 125
	172	+	order of priority, (I) within the community impact zone, (II) within the 126
	173	+	municipality in which the community impact zone is located, or (III) 127
	174	+	without the municipality only after the opportunities under subclauses 128
	175	+	(I) and (II) of this clause have been exhausted; 129
	176	+	(G) Expanding access to programs at existing community centers or 130
	177	+	senior centers that serve all residents of the community impact zone, 131
	178	+	regardless of age, or converting such existing centers to centers that 132
	179	+	serve all residents of the community impact zone, regardless of age; 133
	180	+	and 134
	181	+	(H) Providing municipal residents with low-cost transportation 135
	182	+	options by developing or supporting transportation alternatives within 136
	183	+	and between municipalities for travel to and from employment, home, 137
	184	+	Raised Bill No. 1138
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192		-	subsection, the corporation shall pursue each strategy in the order of 145
193		-	priority listed in said subdivision, with an emphasis on achieving a 146
194		-	high level of quality in the execution and implementation of such 147
195		-	strategy before undertaking the next strategy listed. 148
196		-	(d) A community development corporation may: 149
197		-	(1) Acquire real property described in subsection (c) of this section 150
198		-	in partnership with or in coordination with its partnered community 151
199		-	development credit union; 152
200		-	(2) Operate as or establish a subsidiary that operates as a contractor 153
201		-	or subcontractor, provided such corporation or subsidiary complies 154
202		-	with all applicable licensing and registration requirements under the 155
203		-	general statutes; and 156
204		-	(3) Partner or contract with contractors or subcontractors to carry 157
205		-	out projects and related work for the purposes set forth in subsection 158
206		-	(c) of this section, provided the corporation shall give primary priority 159
207		-	to a contractor or subcontractor located in the community impact zone 160
208		-	in which the corporation is located and secondary priority to a 161
209		-	contractor or subcontractor located in the municipality in which the 162
210		-	corporation is located. 163
211		-	(e) Not later than six months after being designated as a community 164
212		-	development corporation, such corporation shall (1) identify a 165
213		-	Connecticut credit union located within the municipality in which 166
214		-	such corporation is located that will apply to the community 167
215		-	development corporation oversight council for designation as a 168
216		-	community development credit union pursuant to section 2 of this act, 169
217		-	or (2) issue a request for proposal for the organization of a new 170
218		-	Connecticut credit union to partner with, or for an existing 171
219		-	Connecticut credit union to partner with, such corporation. 172
220		-	(f) Notwithstanding the provisions of chapter 846 of the general 173
221		-	statutes or section 12-157 of the general statutes, a community 174
222		-	development corporation shall be offered the right of first refusal in 175 Substitute Bill No. 1138
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	189	+
	190	+	school, retail stores and entertainment venues. 138
	191	+	(2) If the corporation has insufficient funds to execute to a high level 139
	192	+	of quality all of the strategies set forth in subdivision (1) of this 140
	193	+	subsection, the corporation shall pursue each strategy in the order 141
	194	+	listed in said subdivision, with an emphasis on achieving a high level 142
	195	+	of quality in the execution and implementation of such strategy before 143
	196	+	undertaking the next strategy listed. 144
	197	+	(d) A community development corporation may: 145
	198	+	(1) Acquire real property described in subsection (b) of this section 146
	199	+	in partnership with or in coordination with its partnered community 147
	200	+	development credit union; 148
	201	+	(2) Operate as or establish a subsidiary that operates as a contractor 149
	202	+	or subcontractor, provided such corporation or subsidiary complies 150
	203	+	with all applicable licensing and registration requirements under the 151
	204	+	general statutes; and 152
	205	+	(3) Partner or contract with contractors or subcontractors to carry 153
	206	+	out projects and related work for the purposes set forth in subsection 154
	207	+	(b) of this section, provided the corporation shall give primary priority 155
	208	+	to a contractor or subcontractor located in the community impact zone 156
	209	+	in which the corporation is located and secondary priority to a 157
	210	+	contractor or subcontractor located in the municipality in which the 158
	211	+	corporation is located. 159
	212	+	(e) Not later than six months after being designated as a community 160
	213	+	development corporation, such corporation shall (1) identify a 161
	214	+	Connecticut credit union located within the municipality in which 162
	215	+	such corporation is located that will apply to the community 163
	216	+	development corporation oversight council for designation as a 164
	217	+	community development credit union pursuant to section 2 of this act, 165
	218	+	or (2) issue a request for proposal for the organization of a new 166
	219	+	Connecticut credit union to partner with or for an existing Connecticut 167
	220	+	Raised Bill No. 1138
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229		-	the sale of any real property that has been foreclosed or is being sold at 176
230		-	public auction and is located in the community impact zone in which 177
231		-	such corporation is located, provided such corporation has timely 178
232		-	notified the mortgagee or the town tax collector, as applicable, of such 179
233		-	corporation's interest in acquiring such property. 180
234		-	(g) Each community development corporation shall submit a 181
235		-	financial report to the community development corporation oversight 182
236		-	council, on such frequency as the council shall require but at least 183
237		-	annually, and include such information as the council requires. 184
238		-	(h) (1) A community development corporation may request that its 185
239		-	designation be removed. The community development corporation 186
240		-	oversight council may grant such request, provided the council 187
241		-	designates, from prior submitted applications or through a new 188
242		-	request for application submissions, another entity to replace such 189
243		-	corporation. 190
244		-	(2) The council may remove the designation of any community 191
245		-	development corporation that the council determines is unable to or is 192
246		-	deficient in carrying out the purposes of this section, provided the 193
247		-	corporation has been afforded an opportunity to address and improve 194
248		-	any deficiencies noted by the council. 195
249		-	Sec. 2. (NEW) (Effective from passage) (a) There are established 196
250		-	community development credit unions, which shall partner with 197
251		-	community development corporations, established under section 1 of 198
252		-	this act, to further the community restoration and revitalization 199
253		-	purposes set forth in this section and section 1 of this act. 200
254		-	(b) (1) Any Connecticut credit union organized under chapter 667 of 201
255		-	the general statutes and in compliance with the provisions of said 202
256		-	chapter or any Connecticut credit union service organization, as 203
257		-	defined in section 36a-2 of the general statutes, may apply to the 204
258		-	community development corporation oversight council established 205
259		-	under section 3 of this act to be designated as a community 206 Substitute Bill No. 1138
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	225	+
	226	+	credit union to partner with, such corporation. 168
	227	+	(f) Notwithstanding the provisions of chapter 846 of the general 169
	228	+	statutes or section 12-157 of the general statutes, a community 170
	229	+	development corporation shall be offered the right of first refusal in 171
	230	+	the sale of any real property that has been foreclosed or is being sold at 172
	231	+	public auction and is located in the community impact zone in which 173
	232	+	such corporation is located, provided such corporation has timely 174
	233	+	notified the mortgagee or the town tax collector, as applicable, of such 175
	234	+	corporation's interest in acquiring such property. 176
	235	+	(g) Each community development corporation shall submit a 177
	236	+	financial report to the community development corporation oversight 178
	237	+	council, on such frequency as the council shall require but at least 179
	238	+	annually, and include such information as the council requires. 180
	239	+	(h) (1) A community development corporation may request that its 181
	240	+	designation be removed. The community development corporation 182
	241	+	oversight council may grant such request, provided the council 183
	242	+	designates, from prior submitted applications or through a new 184
	243	+	request for application submissions, another entity to replace such 185
	244	+	corporation. 186
	245	+	(2) The council may remove the designation of any community 187
	246	+	development corporation that the council determines is unable to or is 188
	247	+	deficient in carrying out the purposes of this section, provided the 189
	248	+	corporation has been afforded an opportunity to address and improve 190
	249	+	any deficiencies noted by the council. 191
	250	+	Sec. 2. (NEW) (Effective from passage) (a) There are established 192
	251	+	community development credit unions, which shall partner with 193
	252	+	community development corporations, established under section 1 of 194
	253	+	this act, to further the community restoration and revitalization 195
	254	+	purposes set forth in this section and section 1 of this act. 196
	255	+	(b) (1) Any Connecticut credit union organized under chapter 667 of 197
	256	+	Raised Bill No. 1138
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266		-	development credit union. 207
267		-	(2) To be designated as a community development credit union, a 208
268		-	Connecticut credit union or Connecticut credit union service 209
269		-	organization shall: 210
270		-	(A) Serve low-income and moderate-income individuals and 211
271		-	communities that have limited access to affordable financial services 212
272		-	and products, with priority given to credit unions that specialize in (i) 213
273		-	providing home mortgages or small business loans to members with 214
274		-	imperfect, limited or no credit history, (ii) providing financial 215
275		-	education and counseling to its members, and (iii) offering products, 216
276		-	services and support at a low or reasonable cost to its members; and 217
277		-	(B) Agree to partner with or be partnered with at least one 218
278		-	community development corporation and focus its activities and 219
279		-	efforts to support such corporation's purposes set forth in section 1 of 220
280		-	this act. 221
281		-	(c) Each community development credit union shall: 222
282		-	(1) Submit its governance structure to the community development 223
283		-	corporation oversight council for review and approve the addition of 224
284		-	representatives of its partnered community development corporation 225
285		-	to its governing board, executive committee or supervisory committee 226
286		-	or similar board or committee, in such numbers and as agreed to by 227
287		-	such credit union and corporation; 228
288		-	(2) If applicable and necessary, expand its field of membership in 229
289		-	accordance with section 36a-438a of the general statutes, to allow all 230
290		-	residents of all community impact zones within the municipality in 231
291		-	which its partnered community development corporation is located, to 232
292		-	be members of such credit union; 233
293		-	(3) Offer or agree to offer free or low-cost basic checking and 234
294		-	savings account services to all residents of the community impact zone 235
295		-	in which its partnered community development corporation is located; 236 Substitute Bill No. 1138
	260	+	LCO No. 7328 8 of 39
	261	+
	262	+	the general statutes and in compliance with the provisions of said 198
	263	+	chapter or Connecticut credit union service organization, as defined in 199
	264	+	section 36a-2 of the general statutes, may apply to the community 200
	265	+	development corporation oversight council established under section 3 201
	266	+	of this act to be designated as a community development credit union. 202
	267	+	(2) To be designated as a community development credit union, a 203
	268	+	Connecticut credit union or Connecticut credit union service 204
	269	+	organization shall: 205
	270	+	(A) Serve low-income and moderate-income people and 206
	271	+	communities that have limited access to affordable financial services 207
	272	+	and products, with priority given to credit unions that specialize in (i) 208
	273	+	providing home mortgages or small business loans to members with 209
	274	+	imperfect, limited or no credit history, (ii) providing financial 210
	275	+	education and counseling to its members, and (iii) offering products, 211
	276	+	services and support at a low or reasonable cost to its members; and 212
	277	+	(B) Agree to partner with or be partnered with at least one 213
	278	+	community development corporation and focus its activities and 214
	279	+	efforts to support such corporation's purposes set forth in section 1 of 215
	280	+	this act. 216
	281	+	(c) Each community development credit union shall: 217
	282	+	(1) Submit its governance structure to the community development 218
	283	+	corporation oversight council for review and approve the addition of 219
	284	+	representatives of its partnered community development corporation 220
	285	+	to its governing board, executive committee or supervisory committee 221
	286	+	or similar board or committee, in such numbers and as agreed to by 222
	287	+	such credit union and corporation; 223
	288	+	(2) If applicable and necessary, expand its field of membership in 224
	289	+	accordance with section 36a-438a of the general statutes, to allow all 225
	290	+	residents of all community impact zones within the municipality in 226
	291	+	which its partnered community development corporation is located, to 227
	292	+	Raised Bill No. 1138
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302		-	(4) Agree to establish or relocate a location in the community impact 237
303		-	zone in which its partnered community development corporation is 238
304		-	located after such zones are designated pursuant to section 3 of this 239
305		-	act. Such credit union shall not be precluded from establishing or 240
306		-	having locations elsewhere in the state or establishing or having 241
307		-	multiple locations within the municipality in which the community 242
308		-	impact zone is located; and 243
309		-	(5) Develop and issue, in consultation with its partnered community 244
310		-	development corporation, social impact bonds to support or 245
311		-	supplement the efforts of such corporation. Such bonds shall be 246
312		-	designed to maximize tax benefits to investors, where the community 247
313		-	impact zone in which such corporation is located aligns with federal 248
314		-	qualified opportunity zones. 249
315		-	(d) A community development credit union may: 250
316		-	(1) Develop low-cost or subsidized financial products and services 251
317		-	to support the community development goals of its partnered 252
318		-	community development corporation and apply to the community 253
319		-	development corporation oversight council for funding for such 254
320		-	purpose; and 255
321		-	(2) Collaborate with its partnered community development 256
322		-	corporation to help finance or facilitate investments in real property or 257
323		-	community structures and assets pursuant to section 1 of this act. 258
324		-	(e) Each community development credit union shall submit a 259
325		-	financial report to the community development corporation oversight 260
326		-	council, on such frequency as the council shall require but at least 261
327		-	annually, and include such information as the council requires. 262
328		-	(f) (1) A community development credit union may request that its 263
329		-	designation be removed and that it no longer be partnered with its 264
330		-	community development corporation. The community development 265
331		-	corporation oversight council may grant such request, provided such 266
332		-	corporation identifies another Connecticut credit union or Connecticut 267 Substitute Bill No. 1138
	296	+	LCO No. 7328 9 of 39
	297	+
	298	+	be members of such credit union; 228
	299	+	(3) Offer or agree to offer free or low-cost basic checking and 229
	300	+	savings account services to all residents of the community impact zone 230
	301	+	in which its partnered community development corporation is located; 231
	302	+	(4) Agree to establish or relocate a location in the community impact 232
	303	+	zone in which its partnered community development corporation is 233
	304	+	located after such zones are designated pursuant to section 3 of this 234
	305	+	act. Such credit union shall not be precluded from establishing or 235
	306	+	having locations elsewhere in the state or establishing or having 236
	307	+	multiple locations within the municipality in which the community 237
	308	+	impact zone is located; and 238
	309	+	(5) Develop, in consultation with its partnered community 239
	310	+	development corporation, and issue, social impact bonds to support or 240
	311	+	supplement the efforts of such corporation. Such bonds shall be 241
	312	+	designed to maximize tax benefits to investors where the community 242
	313	+	impact zone in which such corporation is located aligns with federal 243
	314	+	qualified opportunity zones. 244
	315	+	(d) A community development credit union may: 245
	316	+	(1) Develop low-cost or subsidized financial products and services 246
	317	+	to support the community development goals of its pa rtnered 247
	318	+	community development corporation and apply to the community 248
	319	+	development corporation oversight council for funding for such 249
	320	+	purpose; and 250
	321	+	(2) Collaborate with its partnered community development 251
	322	+	corporation to help finance or facilitate investments in real property or 252
	323	+	community structures and assets pursuant to section 1 of this act. 253
	324	+	(e) Each community development credit union shall submit a 254
	325	+	financial report to the community development corporation oversight 255
	326	+	council, on such frequency as the council shall require but at least 256
	327	+	Raised Bill No. 1138
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339		-	credit union service organization to replace such credit union or issues 268
340		-	a request for proposal for the organization of a new Connecticut credit 269
341		-	union or Connecticut credit union service organization with which to 270
342		-	partner. 271
343		-	(2) The council may remove the designation of any community 272
344		-	development credit union that the council determines is unable to or is 273
345		-	deficient in carrying out the purposes of this section, provided the 274
346		-	credit union has been afforded an opportunity to address and improve 275
347		-	any deficiencies noted by the council. 276
348		-	Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 277
349		-	"municipality" means any town, city or borough, consolidated town 278
350		-	and city or consolidated town and borough and "distressed 279
351		-	municipality" has the same meaning as provided in section 32-9p of 280
352		-	the general statutes. 281
353		-	(b) (1) There is established a community development corporation 282
354		-	oversight council, which shall be part of the Legislative Department. 283
355		-	The council shall consist of the following members: (A) The Treasurer; 284
356		-	(B) the Commissioner of Economic and Community Development; (C) 285
357		-	the executive director of the Commission on Equity and Opportunity, 286
358		-	established pursuant to section 2-127 of the general statutes; and (D) 287
359		-	four members appointed by the Governor. In making the 288
360		-	appointments under subparagraph (D) of this subdivision, the 289
361		-	Governor shall seek to appoint individuals who have broad 290
362		-	community knowledge and experience with communities within the 291
363		-	eligible census tracts selected by the Secretary of the Office of Policy 292
364		-	and Management pursuant to subsection (f) of this section and are 293
365		-	reflective of the ethnic, gender and economic diversity of such 294
366		-	communities. All appointments to the council shall be made on or after 295
367		-	August 1, 2019, but not later than August 31, 2019. 296
368		-	(2) The Treasurer and the Commissioner of Economic and 297
369		-	Community Development shall serve as cochairpersons of the council 298
370		-	and shall jointly schedule the first meeting of the council, which shall 299 Substitute Bill No. 1138
	331	+	LCO No. 7328 10 of 39
	332	+
	333	+	annually and include such information as the council requires. 257
	334	+	(f) (1) A community development credit union may request that its 258
	335	+	designation be removed and that it no longer be partnered with its 259
	336	+	community development corporation. The community development 260
	337	+	corporation oversight council may grant such request, provided such 261
	338	+	corporation identifies another Connecticut credit union or Connecticut 262
	339	+	credit union service organization to replace such credit union or issues 263
	340	+	a request for proposal for the organization of a new Connecticut credit 264
	341	+	union or Connecticut credit union service organization with which to 265
	342	+	partner. 266
	343	+	(2) The council may remove the designation of any community 267
	344	+	development credit union that the council determines is unable to or is 268
	345	+	deficient in carrying out the purposes of this section, provided the 269
	346	+	credit union has been afforded an opportunity to address and improve 270
	347	+	any deficiencies noted by the council. 271
	348	+	Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 272
	349	+	"municipality" means any town, city or borough, consolidated town 273
	350	+	and city or consolidated town and borough and "distressed 274
	351	+	municipality" has the same meaning as provided in section 32-9p of 275
	352	+	the general statutes. 276
	353	+	(b) (1) There is established a community development corporation 277
	354	+	oversight council, which shall be part of the Legislative Department. 278
	355	+	The council shall consist of the following members: (A) The Treasurer; 279
	356	+	(B) the Commissioner of Economic and Community Development; (C) 280
	357	+	the executive director of the Commission on Equity and Opportunity, 281
	358	+	established pursuant to section 2-127 of the general statutes; and (D) 282
	359	+	four members appointed by the Governor. In making the appointment 283
	360	+	under subparagraph (D) of this subdivision, the Governor shall seek to 284
	361	+	appoint individuals who have broad community knowledge and 285
	362	+	experience with communities within the eligible census tracts selected 286
	363	+	by the Secretary of the Office of Policy and Management pursuant to 287
	364	+	Raised Bill No. 1138
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377		-	be held not later than September 1, 2019. On and after January 1, 2020, 300
378		-	the council shall meet not fewer than six times each year. A majority of 301
379		-	the council shall constitute a quorum for the transaction of any 302
380		-	business. 303
381		-	(3) Any vacancy shall be filled by the appointing authority. Any 304
382		-	vacancy occurring other than by expiration of term shall be filled for 305
383		-	the balance of the unexpired term. 306
384		-	(4) The members of the council shall serve without compensation, 307
385		-	but shall, within the limits of available funds, be reimbursed for 308
386		-	expenses necessarily incurred in the performance of their duties. 309
387		-	(5) The administrative staff of the joint standing committee of the 310
388		-	General Assembly having cognizance of matters relating to economic 311
389		-	development shall serve as administrative staff of the council. 312
390		-	(c) The council shall: 313
391		-	(1) Establish criteria for designation as a community development 314
392		-	corporation, community development credit union and community 315
393		-	impact zone and designate such corporations, credit unions and zones 316
394		-	in accordance with the provisions of this section and sections 1 and 2 317
395		-	of this act; 318
396		-	(2) Establish an annual budget in accordance with the provisions of 319
397		-	this section; 320
398		-	(3) Oversee the investments of, deposits in and disbursements from 321
399		-	the Community Development Corporation Trust Fund established 322
400		-	under section 4 of this act; 323
401		-	(4) Approve the programs, services and activities of and efforts 324
402		-	undertaken by community development corporations and community 325
403		-	development credit unions to further the purposes of this section and 326
404		-	sections 1 and 2 of this act; 327 Substitute Bill No. 1138
	368	+	LCO No. 7328 11 of 39
	369	+
	370	+	subsection (f) of this section and are reflective of the ethnic, gender and 288
	371	+	economic diversity of such communities. All appointments to the 289
	372	+	council shall be made on or after August 1, 2019. 290
	373	+	(2) The Treasurer and the Commissioner of Economic and 291
	374	+	Community Development shall serve as cochairpersons of the council 292
	375	+	and shall jointly schedule the first meeting of the council, which shall 293
	376	+	be held not later than September 1, 2019. On and after January 1, 2020, 294
	377	+	the council shall meet not fewer than six times each year. A majority of 295
	378	+	the council shall constitute a quorum for the transaction of any 296
	379	+	business. 297
	380	+	(3) Any vacancy shall be filled by the appointing authority. Any 298
	381	+	vacancy occurring other than by expiration of term shall be filled for 299
	382	+	the balance of the unexpired term. 300
	383	+	(4) The members of the council shall serve without compensation, 301
	384	+	but shall, within the limits of available funds, be reimbursed for 302
	385	+	expenses necessarily incurred in the performance of their duties. 303
	386	+	(5) The administrative staff of the joint standing committee of the 304
	387	+	General Assembly having cognizance of matters relating to economic 305
	388	+	development shall serve as administrative staff of the council. 306
	389	+	(c) The council shall: 307
	390	+	(1) Establish criteria for designation as a community development 308
	391	+	corporation, community development credit union and community 309
	392	+	impact zone and designate such corporations, credit unions and zones 310
	393	+	in accordance with the provisions of this section and sections 1 and 2 311
	394	+	of this act; 312
	395	+	(2) Establish an annual budget in accordance with the provisions of 313
	396	+	this section; 314
	397	+	(3) Oversee the investments of, deposits in and disbursements from 315
	398	+	the Community Development Corporation Trust Fund established 316
	399	+	Raised Bill No. 1138
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411		-	(5) Oversee, support and coordinate the programs, services and 328
412		-	activities of and efforts undertaken by community development 329
413		-	corporations and community development credit unions under 330
414		-	sections 1 and 2 of this act, within and across municipalities and with 331
415		-	other relevant state agencies, entities and initiatives; 332
416		-	(6) Advise community development corporations, community 333
417		-	development credit unions, state agencies and other entities with 334
418		-	respect to the core purposes of community development corporations 335
419		-	and community development credit unions; 336
420		-	(7) Review the disbursement of funds to, and contracts entered into 337
421		-	by, community development corporations and community 338
422		-	development credit unions, to evaluate the impact and effectiveness of 339
423		-	such disbursements and ensure that decisions made by such 340
424		-	corporations and credit unions regarding services or grants provided 341
425		-	or other financial instruments issued are based solely on the purposes 342
426		-	set forth in sections 1 and 2 of this act; 343
427		-	(8) Review the reports submitted to the council by community 344
428		-	development corporations and community development credit unions; 345
429		-	and 346
430		-	(9) Do all things necessary to carry out its duties and responsibilities 347
431		-	under sections 1 to 4, inclusive, of this act. 348
432		-	(d) The council shall designate community development credit 349
433		-	unions from among applicants that fulfill the requirements set forth in 350
434		-	subsection (b) of section 2 of this act. The council may designate only 351
435		-	one community development credit union for each municipality. 352
436		-	(e) The council shall designate community development 353
437		-	corporations in accordance with the provisions of this subsection. 354
438		-	(1) Not later than October 1, 2019, the council shall release its criteria 355
439		-	for prospective applicants seeking designation as a community 356
440		-	development corporation. In addition to the requirements set forth in 357 Substitute Bill No. 1138
	403	+	LCO No. 7328 12 of 39
	404	+
	405	+	under section 4 of this act; 317
	406	+	(4) Approve the programs, services and activities of and efforts 318
	407	+	undertaken by community development corporations and community 319
	408	+	development credit unions to further the purposes of this section and 320
	409	+	sections 1 and 2 of this act; 321
	410	+	(5) Oversee, support and coordinate the programs, services and 322
	411	+	activities of and efforts undertaken by community development 323
	412	+	corporations and community development credit unions under 324
	413	+	sections 1 and 2 of this act, within and across municipalities and with 325
	414	+	other relevant state agencies, entities and initiatives; 326
	415	+	(6) Advise community development corporations, community 327
	416	+	development credit unions, state agencies and other entities with 328
	417	+	respect to the core purposes of community development corporations 329
	418	+	and community development credit unions; 330
	419	+	(7) Review the disbursement of funds to, and contracts entered into 331
	420	+	by, community dev elopment corporations and community 332
	421	+	development credit unions, to evaluate the impact and effectiveness of 333
	422	+	such disbursements and ensure that decisions made by such 334
	423	+	corporations and credit unions regarding services provided or grants 335
	424	+	or other financial instruments issued are based solely on the purposes 336
	425	+	set forth in sections 1 and 2 of this act; 337
	426	+	(8) Review the reports submitted to the council by community 338
	427	+	development corporations and community development credit unions; 339
	428	+	and 340
	429	+	(9) Do all things necessary to carry out its duties and responsibilities 341
	430	+	under sections 1 to 4, inclusive, of this act. 342
	431	+	(d) The council shall designate community development credit 343
	432	+	unions from among applicants that fulfill the requirements set forth in 344
	433	+	subsection (b) of section 2 of this act. The council may designate only 345
	434	+	Raised Bill No. 1138
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447		-	section 1 of this act, such criteria shall take into consideration the goals, 358
448		-	purposes and requirements set forth in said section and shall include, 359
449		-	but not be limited to, (A) whether the applicant has broad community 360
450		-	representation in its leadership and governance, with an emphasis on 361
451		-	ethnic and economic diversity reflective of the municipality in which 362
452		-	the applicant is located, and (B) the professional competence and 363
453		-	relevant experience of the applicant's management and staff. Each 364
454		-	applicant shall include (i) a letter of support from the chief elected 365
455		-	official of the municipality in which the applicant is located, and (ii) a 366
456		-	statement that the applicant agrees to locate its office in a community 367
457		-	impact zone once such zones are designated. The council shall accept 368
458		-	applications on or after October 1, 2019, until and including January 369
459		-	31, 2020. 370
460		-	(2) Not later than March 1, 2020, the council shall announce its 371
461		-	selections for designated community development corporations. The 372
462		-	council may designate only one community development corporation 373
463		-	for each municipality. 374
464		-	(f) The Secretary of the Office of Policy and Management shall select 375
465		-	eligible census tracts and the council shall designate community 376
466		-	impact zones, in accordance with the provisions of this subsection. 377
467		-	(1) The secretary shall select census tracts within distressed 378
468		-	municipalities that will be eligible to have a community impact zone or 379
469		-	zones designated within such tract. The secretary shall consider, but 380
470		-	need not be limited to, the following metrics for each census tract: (A) 381
471		-	The educational level attained by the population, specifically the 382
472		-	percentage of the population attaining an associate degree or a 383
473		-	bachelor's degree; (B) the most recent third grade scores on the state-384
474		-	wide mastery examination under section 10-14n of the general statutes 385
475		-	for reading; (C) the most recent third grade scores on the state-wide 386
476		-	mastery examination under section 10-14n of the general statutes for 387
477		-	mathematics; (D) the unemployment rate; (E) the state of the local 388
478		-	economy, employment availability and access and diversity of jobs; (F) 389
479		-	the percentage of the population receiving public assistance; (G) the 390 Substitute Bill No. 1138
	438	+	LCO No. 7328 13 of 39
	439	+
	440	+	one community development credit union for each municipality. 346
	441	+	(e) The council shall designate community development 347
	442	+	corporations in accordance with the provisions of this subsection. 348
	443	+	(1) Not later than October 1, 2019, the council shall release its criteria 349
	444	+	for prospective applicants seeking designation as a community 350
	445	+	development corporation. In addition to the requirements set forth in 351
	446	+	section 1 of this act, such criteria shall take into consideration the goals, 352
	447	+	purposes and requirements set forth in said section and shall include, 353
	448	+	but not be limited to, (A) whether the applicant has broad community 354
	449	+	representation in its leadership and governance, with an emphasis on 355
	450	+	ethnic and economic diversity reflective of the municipality in which 356
	451	+	the applicant is located, and (B) the professional competence and 357
	452	+	relevant experience of the applicant's management and staff. Each 358
	453	+	applicant shall include (i) a letter of support from the chief elected 359
	454	+	official of the municipality in which the applicant is located, and (ii) a 360
	455	+	statement that the applicant agrees to locate its office in a community 361
	456	+	impact zone once such zone is designated. The council shall accept 362
	457	+	applications on or after October 1, 2019, until and including January 363
	458	+	31, 2020. 364
	459	+	(2) Not later than March 1, 2020, the council shall announce its 365
	460	+	selections for designated community development corporations. The 366
	461	+	council may designate only one community development corporation 367
	462	+	for each municipality. 368
	463	+	(f) The Secretary of the Office of Policy and Management shall select 369
	464	+	eligible census tracts and the council shall designate community 370
	465	+	impact zones in accordance with the provisions of this subsection. 371
	466	+	(1) The secretary shall select census tracts within distressed 372
	467	+	municipalities that are eligible to have a community impact zone or 373
	468	+	zones designated within such tract. The secretary shall consider, but 374
	469	+	need not be limited to, the following metrics for each census tract: (A) 375
	470	+	The educational level attained by the population, specifically the 376
	471	+	Raised Bill No. 1138
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485	474
486		-	percentage of the population below the federal poverty level; (H) the 391
487		-	rate of home ownership; (I) the percentage of vacant housing; and (J) 392
488		-	crime rates. 393
489		-	(2) Not later than August 1, 2019, the secretary shall release the 394
490		-	census tracts that are eligible for consideration, based on a 395
491		-	demonstration of the greatest socio-economic need as indicated by 396
492		-	subparagraphs (A) to (J), inclusive, of subdivision (1) of this 397
493		-	subsection. The secretary shall also release the criteria for determining 398
494		-	an area within such tract to be designated as a community impact 399
495		-	zone. Such criteria shall take into consideration the goals, purposes 400
496		-	and requirements set forth in section 1 of this act and may give weight 401
497		-	to one or more of the following: (A) The existence of a public 402
498		-	elementary school within the area; (B) the existence of an early 403
499		-	childhood center within the area; (C) the existence of a community 404
500		-	center serving children or seniors, or both, within the area; (D) the 405
501		-	existence of a local community organization comprised of residents 406
502		-	and leaders within the area, which organization's role is 407
503		-	complementary to the goals, purposes and requirements set forth in 408
504		-	section 1 of this act; (E) the proximity of the area to existing or planned 409
505		-	public transportation; and (F) existing access to an asset-based housing 410
506		-	organization that focuses on home ownership and financial literacy. 411
507		-	(3) Not later than June 1, 2020, each community development 412
508		-	corporation shall submit a proposal to the council for not more than 413
509		-	two geographically distinct areas within an eligible census tract in 414
510		-	which the corporation is located to be designated as a community 415
511		-	impact zone. 416
512		-	(4) Not later than August 1, 2020, the council shall announce its 417
513		-	selections for designated community impact zones. The council may 418
514		-	designate one community impact zone for a municipality with a 419
515		-	population of one hundred thousand or less and two community 420
516		-	impact zones for a municipality with a population of greater than one 421
517		-	hundred thousand. If the council rejects a proposal or does not 422
518		-	designate an area that a community development corporation 423 Substitute Bill No. 1138
	475	+	LCO No. 7328 14 of 39
	476	+
	477	+	percentage of the population attaining an associate degree or a 377
	478	+	bachelor's degree; (B) the most recent third grade scores on the state-378
	479	+	wide mastery examination under section 10-14n of the general statutes 379
	480	+	for reading; (C) the most recent third grade scores on the state-wide 380
	481	+	mastery examination under section 10-14n of the general statutes for 381
	482	+	mathematics; (D) the unemployment rate; (E) the state of the local 382
	483	+	economy, employment availability and access and diversity of jobs; (F) 383
	484	+	the percentage of the population receiving public assistance; (G) the 384
	485	+	percentage of the population below the federal poverty level; (H) the 385
	486	+	rate of home ownership; (I) the percentage of vacant housing; and (J) 386
	487	+	crime rates. 387
	488	+	(2) Not later than August 1, 2019, the secretary shall release the 388
	489	+	eligible census tracts based on those that demonstrate the greatest 389
	490	+	socio-economic need as indicated by subparagraphs (A) to (J), 390
	491	+	inclusive, of subdivision (1) of this subsection and the criteria for an 391
	492	+	area within such tract to be designated as a community impact zone. 392
	493	+	Such criteria shall take into consideration the goals, purposes and 393
	494	+	requirements set forth in section 1 of this act and may give weight to 394
	495	+	one or more of the following: (A) The existence of a public elementary 395
	496	+	school within the area; (B) the existence of an early childhood center 396
	497	+	within the area; (C) the existence of a community center serving 397
	498	+	children or seniors, or both, within the area; (D) the existence of a local 398
	499	+	community organization comprised of residents and leaders within the 399
	500	+	area, which organization's role is complementary to the goals, 400
	501	+	purposes and requirements set forth in section 1 of this act; (E) the 401
	502	+	proximity of the area to existing or planned public transportation; and 402
	503	+	(F) existing access to an asset-based housing organization that focuses 403
	504	+	on home ownership and financial literacy. 404
	505	+	(3) Not later than June 1, 2020, each community development 405
	506	+	corporation shall submit a proposal to the council for not more than 406
	507	+	two geographically distinct areas within an eligible census tract in 407
	508	+	which the corporation is located to be designated as a community 408
	509	+	impact zone. 409
	510	+	Raised Bill No. 1138
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524	513
525		-	proposed, the council may allow such corporation to resubmit a 424
526		-	proposal if a community impact zone has not been otherwise 425
527		-	designated. 426
528		-	(5) Not later than February 1, 2021, or as soon as practicable 427
529		-	following the designations of community impact zones, each 428
530		-	community development corporation shall establish an office or 429
531		-	relocate its office within such zone. 430
532		-	(g) The council shall establish an annual budget that sets forth the 431
533		-	amounts in the Community Development Corporation Trust Fund to 432
534		-	be invested, the amounts in the fund to be disbursed for programs, 433
535		-	services, activities and expenses for the purposes of sections 1 and 2 of 434
536		-	this act and the amount to be set aside for the purposes of subsections 435
537		-	(h) and (i) of this section. The council, in consultation with the 436
538		-	Treasurer and the chief executive officer of the Connecticut Green 437
539		-	Bank established under section 16-245n of the general statutes, shall 438
540		-	adopt an investment plan with the goals of yielding investment returns 439
541		-	over the long-term to support the programs, services, activities and 440
542		-	efforts for the purposes of sections 1 and 2 of this act and supporting a 441
543		-	substantial portion of the fund's annual expenditures from the 442
544		-	investment returns. The initial investment plan shall set forth an 443
545		-	investment strategy for not less than twenty years and the council may 444
546		-	revise such plan from time to time by affirmative vote. The council 445
547		-	shall annually review such plan and the investment returns generated 446
548		-	and shall adjust the amount of moneys to be invested and disbursed 447
549		-	each year accordingly. 448
550		-	(h) (1) The council shall set aside an amount in its annual budget 449
551		-	equal to the amount appropriated in the state budget act for the 450
552		-	intensive reading instruction program established under section 10-451
553		-	14u of the general statutes, provided such amount set aside shall not 452
554		-	exceed three million dollars each year. The amount to be set aside 453
555		-	under this subsection may be reduced if there are insufficient moneys 454
556		-	in the fund to provide for the purposes set forth in sections 1 and 2 of 455
557		-	this act and for the entire amount of the set-aside specified under this 456 Substitute Bill No. 1138
	514	+	LCO No. 7328 15 of 39
	515	+
	516	+	(4) Not later than August 1, 2020, the council shall announce its 410
	517	+	selections for designated community impact zones. The council may 411
	518	+	designate one community impact zone for a municipality with a 412
	519	+	population of one hundred thousand or less and two community 413
	520	+	impact zones for a municipality with a population of greater than one 414
	521	+	hundred thousand. If the council rejects a proposal or does not 415
	522	+	designate an area that a community development corporation 416
	523	+	proposed, the council may allow such corporation to resubmit a 417
	524	+	proposal if a community impact zone has not been designated as set 418
	525	+	forth in this subdivision. 419
	526	+	(5) Not later than February 1, 2021, or as soon as practicable 420
	527	+	following the designations of community impact zones, each 421
	528	+	community development corporation shall establish an office or 422
	529	+	relocate its office within such zone. 423
	530	+	(g) The council shall establish an annual budget that sets forth the 424
	531	+	amounts in the Community Development Corporation Trust Fund to 425
	532	+	be invested, the amounts in the fund to be disbursed for programs, 426
	533	+	services, activities and expenses for the purposes of sections 1 and 2 of 427
	534	+	this act and the amount to be set aside for the purposes of subsection 428
	535	+	(j) of this section. The council, in consultation with the Treasurer and 429
	536	+	the chief executive officer of the Connecticut Green Bank established 430
	537	+	under section 16-245n of the general statutes, shall adopt an 431
	538	+	investment plan with the goals of yielding investment returns over the 432
	539	+	long-term to support the programs, services, activities and efforts for 433
	540	+	the purposes of sections 1 and 2 of this act and supporting a 434
	541	+	substantial portion of the fund's annual expenditures from the 435
	542	+	investment returns. The initial investment plan shall set forth an 436
	543	+	investment strategy for not less than twenty years and the council may 437
	544	+	revise such plan from time to time by affirmative vote. The council 438
	545	+	shall annually review such plan and the investment returns generated 439
	546	+	and shall adjust the amount of moneys to be invested and disbursed 440
	547	+	each year accordingly. 441
	548	+	Raised Bill No. 1138
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564		-	subdivision. 457
565		-	(2) The council shall make such moneys available for the 458
566		-	implementation or support of said reading instruction program or any 459
567		-	state-wide early literacy initiative developed and implemented by the 460
568		-	Department of Education, regardless of whether such program or 461
569		-	initiative is related to a community impact zone or is eligible for other 462
570		-	community development corporation or community development 463
571		-	credit union programs or other grants or funding. The moneys made 464
572		-	available pursuant to this subdivision shall supplement existing or 465
573		-	other available grants or funding. The council shall establish forms and 466
574		-	criteria to apply for such moneys and shall give primary priority to 467
575		-	applications from schools located in a community impact zone, 468
576		-	provided all such schools submit an application. Any moneys awarded 469
577		-	to such schools shall be distributed on a zone-wide basis to be used 470
578		-	solely for the purpose of making said reading instruction program 471
579		-	available to all students reading below proficiency level who reside or 472
580		-	attend school within the community impact zone. The council shall 473
581		-	give secondary priority to applications from schools located in a 474
582		-	distressed municipality on the basis of the level of student reading 475
583		-	achievement, as determined by the Commissioner of Education. 476
584		-	(i) The council shall set aside an amount in its annual budget, to be 477
585		-	determined by the council, to provide financial assistance to health 478
586		-	care providers and facilities that provide mental health or substance 479
587		-	use disorder treatment services in any municipality. The council shall 480
588		-	establish eligibility requirements for such financial assistance and 481
589		-	publicize the availability of such financial assistance to the relevant 482
590		-	community. 483
591		-	(j) The council shall develop a proposal to allow social impact bonds 484
592		-	to be issued by the state to support public schools located in 485
593		-	community impact zones. Not later than February 1, 2020, the 486
594		-	Secretary of the Office of Policy and Management shall submit a 487
595		-	report, in accordance with the provisions of section 11-4a of the general 488
596		-	statutes, to the General Assembly, setting forth the proposal and 489 Substitute Bill No. 1138
	552	+	LCO No. 7328 16 of 39
	553	+
	554	+	(h) (1) The council shall set aside an amount in its annual budget 442
	555	+	equal to the amount appropriated in the state budget act for the 443
	556	+	intensive reading instruction program established under section 10-444
	557	+	14u of the general statutes, provided such amount set aside shall not 445
	558	+	exceed three million dollars each year. The amount to be set aside 446
	559	+	under this subsection may be reduced if there are insufficient moneys 447
	560	+	in the fund to provide for the purposes set forth in sections 1 and 2 of 448
	561	+	this act and for the entire amount of the set-aside specified under this 449
	562	+	subdivision. 450
	563	+	(2) The council shall make such moneys available for the 451
	564	+	implementation or support of said reading instruction program or any 452
	565	+	state-wide early literacy initiative developed and implemented by the 453
	566	+	Department of Education, regardless of whether such program or 454
	567	+	initiative is related to a community impact zone or is eligible for other 455
	568	+	community development corporation or community development 456
	569	+	credit union programs or other grants or funding. The moneys made 457
	570	+	available pursuant to this subdivision shall supplement existing or 458
	571	+	other available grants or funding. The council shall establish forms and 459
	572	+	criteria to apply for such moneys and shall give primary priority to 460
	573	+	applications from schools located in a community impact zone, 461
	574	+	provided all such schools submit an application. Any moneys awarded 462
	575	+	to such schools shall be distributed on a zone-wide basis to be used 463
	576	+	solely for the purpose of making said reading instruction program 464
	577	+	available to all students reading below proficiency level who reside or 465
	578	+	attend school within the community impact zone. The council shall 466
	579	+	give secondary priority to applications from schools located in a 467
	580	+	distressed municipality on the basis of the level of student reading 468
	581	+	achievement, as determined by the Commissioner of Education. 469
	582	+	(i) The council shall develop a proposal to allow social impact bonds 470
	583	+	to be issued by the state to support public schools located in 471
	584	+	community impact zones. Not later than February 1, 2020, the 472
	585	+	Secretary of the Office of Policy and Management shall submit a 473
	586	+	report, in accordance with the provisions of section 11-4a of the general 474
	587	+	Raised Bill No. 1138
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603		-	including recommendations on ways to leverage the federal qualified 490
604		-	opportunity zones program to support such public schools. 491
605		-	(k) (1) The council may cause to have conducted an external, 492
606		-	independent audit of any community development corporation or 493
607		-	community development credit union. 494
608		-	(2) The council may request the Auditors of Public Accounts to 495
609		-	perform, and said auditors shall perform, audits and other related 496
610		-	evaluations to facilitate the council's responsibilities established under 497
611		-	sections 1 to 4, inclusive, of this act. 498
612		-	(l) Not later than February 1, 2022, and annually thereafter, the 499
613		-	council shall submit a report to the Governor and to the General 500
614		-	Assembly, in accordance with the provisions of section 11-4a of the 501
615		-	general statutes. Such report shall include, but not be limited to, a list 502
616		-	of the community development corporations, community 503
617		-	development credit unions and community impact zones designated 504
618		-	to date, a summary of the programs, services, activities and efforts 505
619		-	undertaken by such corporations and credit unions pursuant to 506
620		-	sections 1 and 2 of this act and the disbursements made from the 507
621		-	Community Development Corporation Trust Fund to support such 508
622		-	programs, services, activities and efforts. 509
623		-	Sec. 4. (NEW) (Effective from passage) (a) There is established a fund 510
624		-	to be known as the "Community Development Corporation Trust 511
625		-	Fund". The fund shall contain any moneys required by law to be 512
626		-	deposited in the fund and shall be held in trust separate and apart 513
627		-	from all other moneys, funds and accounts. Investment earnings 514
628		-	credited to the assets of the fund shall become part of the assets of said 515
629		-	fund. Any balance remaining in the fund at the end of any fiscal year 516
630		-	shall be carried forward in the fund for the fiscal year next succeeding. 517
631		-	Moneys in the fund shall be expended by the community development 518
632		-	corporation oversight council established pursuant to section 3 of this 519
633		-	act to be used for the purposes set forth in sections 1 and 2 of this act. 520 Substitute Bill No. 1138
	591	+	LCO No. 7328 17 of 39
	592	+
	593	+	statutes, to the General Assembly, setting forth the proposal and 475
	594	+	including recommendations on ways to leverage the federal qualified 476
	595	+	opportunity zones program to support such public schools. 477
	596	+	(j) (1) The council may cause to have conducted an external, 478
	597	+	independent audit of any community development corporation or 479
	598	+	community development credit union. 480
	599	+	(2) The council may request the Auditors of Public Accounts to 481
	600	+	perform, and said auditors shall perform, audits and other related 482
	601	+	evaluations to facilitate the council's responsibilities established under 483
	602	+	sections 1 to 4, inclusive, of this act. 484
	603	+	(k) Not later than February 1, 2022, and annually thereafter, the 485
	604	+	council shall submit a report to the Governor and to the General 486
	605	+	Assembly, in accordance with the provisions of section 11-4a of the 487
	606	+	general statutes. Such report shall include, but not be limited to, a list 488
	607	+	of the community development corporations, community 489
	608	+	development credit unions and community impact zones designated 490
	609	+	to date, a summary of the programs, services, activities and efforts 491
	610	+	undertaken by such corporations and credit unions pursuant to 492
	611	+	sections 1 and 2 of this act and the disbursements made from the 493
	612	+	Community Development Corporation Trust Fund to support such 494
	613	+	programs, services, activities and efforts. 495
	614	+	Sec. 4. (NEW) (Effective from passage) (a) There is established a fund 496
	615	+	to be known as the "Community Development Corporation Trust 497
	616	+	Fund". The fund shall contain any moneys required by law to be 498
	617	+	deposited in the fund and shall be held in trust separate and apart 499
	618	+	from all other moneys, funds and accounts. Investment earnings 500
	619	+	credited to the assets of the fund shall become part of the assets of said 501
	620	+	fund. Any balance remaining in the fund at the end of any fiscal year 502
	621	+	shall be carried forward in the fund for the fiscal year next succeeding. 503
	622	+	Moneys in the fund shall be expended by the community development 504
	623	+	corporation oversight council established pursuant to section 3 of this 505
	624	+	Raised Bill No. 1138
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640		-	(b) The Treasurer shall invest the amounts on deposit in the fund in 521
641		-	a manner reasonable and appropriate to achieve the objectives of the 522
642		-	fund, exercising the discretion and care of a prudent person in similar 523
643		-	circumstances with similar objectives. The Treasurer shall give due 524
644		-	consideration to rate of return, risk, term or maturity, diversification of 525
645		-	the total portfolio within the fund, liquidity, the projected 526
646		-	disbursements and expenditures, and the expected payments, 527
647		-	deposits, contributions and gifts to be received. The Treasurer shall not 528
648		-	require the fund to invest directly in obligations of the state or any 529
649		-	political subdivision of the state or in any investment or other fund 530
650		-	administered by the Treasurer. The assets of the fund shall be 531
651		-	continuously invested and reinvested in a manner consistent with the 532
652		-	objectives of the fund until disbursed for the purposes set forth in 533
653		-	sections 1 and 2 of this act. 534
654		-	(c) On or before December thirty-first, annually, the Treasurer shall 535
655		-	submit a financial report, in accordance with the provisions of section 536
656		-	11-4a of the general statutes, to the community development 537
657		-	corporation oversight council and the joint standing committee of the 538
658		-	General Assembly having cognizance of matters relating to finance, 539
659		-	revenue and bonding, setting forth the receipts, disbursements, assets, 540
660		-	investments, liabilities and administrative costs of the fund for the 541
661		-	prior fiscal year. 542
662		-	Sec. 5. (NEW) (Effective from passage) Any entity that is exempt from 543
663		-	paying property tax pursuant to Section 501(c) of the Internal Revenue 544
664		-	Code of 1986, or any subsequent corresponding internal revenue code 545
665		-	of the United States, as amended from time to time, any municipality 546
666		-	and the state may make a deposit with a community development 547
667		-	credit union, to be invested by such credit union to further the 548
668		-	community restoration and revitalization purposes set forth in sections 549
669		-	1 to 4, inclusive, of this act. Each community development credit union 550
670		-	that receives a deposit pursuant to this section shall provide a rate of 551
671		-	return on such deposit that is, at a minimum, not less than the London 552
672		-	Interbank Offered Rate. 553 Substitute Bill No. 1138
	628	+	LCO No. 7328 18 of 39
	629	+
	630	+	act to be used for the purposes set forth in sections 1 and 2 of this act. 506
	631	+	(b) The Treasurer shall invest the amounts on deposit in the fund in 507
	632	+	a manner reasonable and appropriate to achieve the objectives of the 508
	633	+	fund, exercising the discretion and care of a prudent person in similar 509
	634	+	circumstances with similar objectives. The Treasurer shall give due 510
	635	+	consideration to rate of return, risk, term or maturity, diversification of 511
	636	+	the total portfolio within the fund, liquidity, the projected 512
	637	+	disbursements and expenditures, and the expected payments, 513
	638	+	deposits, contributions and gifts to be received. The Treasurer shall not 514
	639	+	require the fund to invest directly in obligations of the state or any 515
	640	+	political subdivision of the state or in any investment or other fund 516
	641	+	administered by the Treasurer. The assets of the fund shall be 517
	642	+	continuously invested and reinvested in a manner consistent with the 518
	643	+	objectives of the fund until disbursed for the purposes set forth in 519
	644	+	sections 1 and 2 of this act. 520
	645	+	(c) On or before December thirty-first, annually, the Treasurer shall 521
	646	+	submit a financial report, in accordance with the provisions of section 522
	647	+	11-4a of the general statutes, to the community development 523
	648	+	corporation oversight council and the joint standing committee of the 524
	649	+	General Assembly having cognizance of matters relating to finance, 525
	650	+	revenue and bonding, setting forth the receipts, disbursements, assets, 526
	651	+	investments, liabilities and administrative costs of the fund for the 527
	652	+	prior fiscal year. 528
	653	+	Sec. 5. (NEW) (Effective from passage) (a) (1) Each entity that (A) is 529
	654	+	exempt from paying property tax pursuant to Section 501(c) of the 530
	655	+	Internal Revenue Code of 1986, or any subsequent corresponding 531
	656	+	internal revenue code of the United States, as amended from time to 532
	657	+	time, including a community development corporation described in 533
	658	+	section 1 of this act, and (B) (i) owns college or hospital property, as 534
	659	+	described in subsection (a) of section 12-20a of the general statutes, that 535
	660	+	is subject to the grants in lieu of taxes program under section 12-18b of 536
	661	+	the general statutes, or (ii) maintains a pension fund, endowment fund 537
	662	+	Raised Bill No. 1138
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679		-	Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 554
680		-	(1) (A) "Cannabis" means (i) all parts of any plant or species of the 555
681		-	genus cannabis or any infra specific taxon thereof, whether growing or 556
682		-	not, (ii) the seeds thereof, (iii) the resin extracted from any part of the 557
683		-	plant, and (iv) every compound, manufacture, salt, derivative, mixture 558
684		-	or preparation of such plant, its seeds or resin. "Cannabis" includes 559
685		-	cannabinon, cannabinol and cannabidiol. 560
686		-	(B) "Cannabis" does not include (i) the mature stalks of such plant, 561
687		-	(ii) fiber produced from such stalks, (iii) oil or cake made from the 562
688		-	seeds of such plant, (iv) any other compound, manufacture, salt, 563
689		-	derivative, mixture or preparation of such mature stalks except the 564
690		-	resin extracted therefrom, (v) fiber, oil or cake, (vi) the sterilized seed 565
691		-	of such plant, which is incapable of germination, (vii) industrial hemp, 566
692		-	as defined in 7 USC 5940, as amended from time to time, or (viii) 567
693		-	marijuana cultivated or sold for palliative use pursuant to chapter 420f 568
694		-	of the general statutes; 569
695		-	(2) "Cannabis product" means a cannabis concentrate or a product 570
696		-	that contains cannabis, which may be combined with other 571
697		-	ingredients, and is intended for use or consumption. Cannabis 572
698		-	concentrate includes tinctures and extracts; 573
699		-	(3) "Cannabis cultivation facility" means a facility licensed by the 574
700		-	Cannabis Commission to cultivate, prepare and package cannabis and 575
701		-	sell cannabis to cannabis product manufacturing facilities, cannabis 576
702		-	retailers and other cannabis cultivation facilities; 577
703		-	(4) "Cannabis product manufacturing facility" means a facility 578
704		-	licensed by the Cannabis Commission to purchase cannabis from 579
705		-	cannabis cultivation facilities, manufacture, prepare and package 580
706		-	cannabis products and sell cannabis and cannabis products to cannabis 581
707		-	retailers and other cannabis product manufacturing facilities; 582
708		-	(5) "Cannabis retailer" means a person licensed by the Cannabis 583
709		-	Commission to purchase cannabis from cannabis cultivation facilities 584 Substitute Bill No. 1138
	666	+	LCO No. 7328 19 of 39
	667	+
	668	+	or other significant savings fund or account, shall pay a fee annually to 538
	669	+	the Treasurer for deposit in the community development account 539
	670	+	established under subsection (d) of this section. 540
	671	+	(2) Such fee shall be equal to twenty-five per cent of the amount of 541
	672	+	the property tax, calculated annually, that the entity would have paid 542
	673	+	on such real property at the mill rate applicable for each assessment 543
	674	+	year. Such payment shall be accompanied by a form, prescribed by the 544
	675	+	Treasurer, that includes the name and address of the entity, the 545
	676	+	calculated amount, the amount of the payment and any other 546
	677	+	information the Treasurer requires for the purpose of this subsection. 547
	678	+	(3) On and after the date the community development corporation 548
	679	+	oversight council, established under section 3 of this act, designates 549
	680	+	community impact zones in accordance with the provisions of said 550
	681	+	section, any entity paying the fee pursuant to this subsection may 551
	682	+	specify to the Treasurer the community impact zone within the 552
	683	+	municipality in which the real property is located to which such fee 553
	684	+	payment shall be directed. 554
	685	+	(b) In addition to the entities specified under subsection (a) of this 555
	686	+	section, each municipality and the state shall pay the fee calculated 556
	687	+	pursuant to subdivision (2) of subsection (a) of this section, except that 557
	688	+	the state shall calculate its fee payment based on the average mill rate 558
	689	+	of all municipalities in the state. 559
	690	+	(c) Except as specified under subdivision (3) of subsection (a) of this 560
	691	+	section and subdivision (3) of this subsection, the Treasurer shall 561
	692	+	annually disburse each fee payment to the community development 562
	693	+	credit union designated pursuant to section 2 of this act that is located 563
	694	+	in the distressed municipality, as defined in section 32-9p of the 564
	695	+	general statutes, within which the real property described under 565
	696	+	subdivision (1) of subsection (a) of this section is located. 566
	697	+	(1) If no such credit union has been designated yet for such 567
	698	+	municipality, the fee under subsection (a) of this section shall not be 568
	699	+	Raised Bill No. 1138
710	700
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715	702
716		-	as well as to purchase cannabis and cannabis products from cannabis 585
717		-	product manufacturing facilities and to sell cannabis and cannabis 586
718		-	products to consumers; 587
719		-	(6) "Consumer" means an individual who is twenty-one years of age 588
720		-	or older; and 589
721		-	(7) "Cannabis Commission" means the commission established 590
722		-	under section 2 of house bill 7371 of the current session. 591
723		-	(b) (1) On and after the date the Cannabis Commission first issues a 592
724		-	license to a cannabis cultivation facility, there is imposed a tax on each 593
725		-	such facility on the first sale of cannabis within the state at the rate of 594
726		-	thirty-five dollars per ounce of cannabis flowers and thirteen dollars 595
727		-	and fifty cents per ounce of cannabis trim. 596
728		-	(2) Each cannabis cultivation facility making such sales shall file 597
729		-	with the Commissioner of Revenue Services, on or before the last day 598
730		-	of each calendar quarter, a return for the calendar quarter immediately 599
731		-	preceding. Such returns shall be in such form and contain such 600
732		-	information as the commissioner prescribes, and shall be accompanied 601
733		-	by a payment of the amount of the tax shown to be due thereon. 602
734		-	(3) The commissioner shall deposit the amounts received by the 603
735		-	state from the tax imposed under subdivision (1) of this subsection into 604
736		-	the Community Development Corporation Trust Fund established 605
737		-	under section 4 of this act. 606
738		-	(c) If any person fails to pay the amount of tax reported due on its 607
739		-	report within the time specified under this section, there shall be 608
740		-	imposed a penalty equal to ten per cent of such amount due and 609
741		-	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 610
742		-	interest at the rate of one per cent per month or fraction thereof, from 611
743		-	the due date of such tax until the date of payment. Subject to the 612
744		-	provisions of section 12-3a of the general statutes, the commissioner 613
745		-	may waive all or part of the penalties provided under this section 614
746		-	when it is proven to the commissioner's satisfaction that the failure to 615 Substitute Bill No. 1138
	703	+	LCO No. 7328 20 of 39
	704	+
	705	+	required to be paid by the entity or municipality. 569
	706	+	(2) If (A) a designated community development credit union elects 570
	707	+	to be removed from or is removed from such designation and no 571
	708	+	replacement has been designated, or (B) such real property is not 572
	709	+	located within a distressed municipality, the Treasurer, in consultation 573
	710	+	with the community development corporation oversight council, may 574
	711	+	(i) disburse fees paid by the entity whose real property is located 575
	712	+	within such municipality to all community development credit unions 576
	713	+	located in community impact zones within another municipality, or (ii) 577
	714	+	transfer such fees to an evergreen account within the Community 578
	715	+	Development Corporation Trust Fund established under section 4 of 579
	716	+	this act. 580
	717	+	(3) The Treasurer shall disburse annually each fee payment (A) 581
	718	+	made by a municipality to the community development credit union 582
	719	+	located within such municipality, and (B) made by the state to all 583
	720	+	community development credit unions in the state in equal amounts. 584
	721	+	(d) Each community development credit union that receives fee 585
	722	+	payments made pursuant to subsection (a) of this section shall 586
	723	+	administer individual accounts for each entity making such payments 587
	724	+	and shall invest such payments in a manner determined by such credit 588
	725	+	union, provided any returns generated by investing such payments 589
	726	+	shall be distributed annually as follows: (1) One-sixth shall be 590
	727	+	deposited in an evergreen account within the Community 591
	728	+	Development Corporation Trust Fund established under section 4 of 592
	729	+	this act, to be continually reinvested; (2) one-third shall be returned to 593
	730	+	the entity that remitted payments pursuant to subdivision (1) of 594
	731	+	subsection (a) of this section, provided an entity may elect to reinvest 595
	732	+	such return with such credit union; and (3) one-half shall be made 596
	733	+	available for disbursements to community development corporations 597
	734	+	and community development credit unions for eligible programs, 598
	735	+	services, activities and efforts approved by the community 599
	736	+	development corporation oversight council. 600
	737	+	Raised Bill No. 1138
747	738
748	739
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752	740
753		-	pay any tax was due to reasonable cause and was not intentional or 616
754		-	due to neglect. 617
755		-	(d) Each person, other than a cannabis cultivation facility, who is 618
756		-	required, on behalf of such facility, to collect, truthfully account for 619
757		-	and pay over a tax imposed on such facility under this section and 620
758		-	who wilfully fails to collect, truthfully account for and pay over such 621
759		-	tax or who wilfully attempts in any manner to evade or defeat the tax 622
760		-	or the payment thereof, shall, in addition to other penalties provided 623
761		-	by law, be liable for a penalty equal to the total amount of the tax 624
762		-	evaded, or not collected, or not accounted for and paid over, including 625
763		-	any penalty or interest attributable to such wilful failure to collect or 626
764		-	truthfully account for and pay over such tax or such wilful attempt to 627
765		-	evade or defeat such tax, provided such penalty shall only be imposed 628
766		-	against such person in the event that such tax, penalty or interest 629
767		-	cannot otherwise be collected from such facility. The amount of such 630
768		-	penalty with respect to which a person may be personally liable under 631
769		-	this section shall be collected in accordance with the provisions of 632
770		-	section 12-555a of the general statutes and any amount so collected 633
771		-	shall be allowed as a credit against the amount of such tax, penalty or 634
772		-	interest due and owing from the facility. The dissolution of the facility 635
773		-	shall not discharge any person in relation to any personal liability 636
774		-	under this section for wilful failure to collect or truthfully account for 637
775		-	and pay over such tax or for a wilful attempt to evade or defeat such 638
776		-	tax prior to dissolution, except as otherwise provided in this section. 639
777		-	For purposes of this section, "person" includes any individual, 640
778		-	corporation, limited liability company or partnership and any officer 641
779		-	or employee of any corporation, including a dissolved corporation, 642
780		-	and a member or employee of any partnership or limited liability 643
781		-	company who, as such officer, employee or member, is under a duty to 644
782		-	file a tax return under this section on behalf of a cannabis cultivation 645
783		-	facility or to collect or truthfully account for and pay over a tax 646
784		-	imposed under this section on behalf of such facility. 647
785		-	(e) No tax credit or credits shall be allowable against the tax 648 Substitute Bill No. 1138
	741	+	LCO No. 7328 21 of 39
	742	+
	743	+	(e) There is established an account to be known as the "community 601
	744	+	development account" which shall be a separate, nonlapsing account 602
	745	+	within the General Fund. The account shall contain any moneys 603
	746	+	required by law to be deposited in the account. Moneys in the account 604
	747	+	shall be expended by Treasurer, in consultation with the community 605
	748	+	development corporation oversight council established under section 3 606
	749	+	of this act, in accordance with the provisions of this section. 607
	750	+	Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 608
	751	+	(1) (A) "Cannabis" means (i) all parts of any plant or species of the 609
	752	+	genus cannabis or any infra specific taxon thereof, whether growing or 610
	753	+	not, (ii) the seeds thereof, (iii) the resin extracted from any part of the 611
	754	+	plant, and (iv) every compound, manufacture, salt, derivative, mixture 612
	755	+	or preparation of such plant, its seeds or resin. "Cannabis" includes 613
	756	+	cannabinon, cannabinol and cannabidiol. 614
	757	+	(B) "Cannabis" does not include (i) the mature stalks of such plant, 615
	758	+	(ii) fiber produced from such stalks, (iii) oil or cake made from the 616
	759	+	seeds of such plant, (iv) any other compound, manufacture, salt, 617
	760	+	derivative, mixture or preparation of such mature stalks except the 618
	761	+	resin extracted therefrom, (v) fiber, oil, or cake, (vi) the sterilized seed 619
	762	+	of such plant, which is incapable of germination, (vii) industrial hemp, 620
	763	+	as defined in 7 USC 5940, as amended from time to time, or (viii) 621
	764	+	marijuana cultivated or sold for palliative use pursuant to chapter 420f 622
	765	+	of the general statutes. 623
	766	+	(2) "Cannabis product" means a cannabis concentrate or a product 624
	767	+	that contains cannabis, which may be combined with other 625
	768	+	ingredients, and is intended for use or consumption. Cannabis 626
	769	+	concentrate includes tinctures and extracts; 627
	770	+	(3) "Cannabis cultivation facility" means a facility licensed by the 628
	771	+	Cannabis Commission to cultivate, prepare and package cannabis and 629
	772	+	sell cannabis to cannabis product manufacturing facilities, cannabis 630
	773	+	retailers and other cannabis cultivation facilities; 631
	774	+	Raised Bill No. 1138
786	775
787	776
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790		-	22 of 36
791	777
792		-	imposed under this section. 649
793		-	(f) The provisions of sections 12-551 to 12-554, inclusive, and section 650
794		-	12-555a of the general statutes shall apply to the provisions of this 651
795		-	section in the same manner and with the same force and effect as if the 652
796		-	language of said sections had been incorporated in full into this section 653
797		-	and had expressly referred to the tax under this section, except to the 654
798		-	extent that any provision is inconsistent with a provision in this 655
799		-	section. 656
800		-	(g) The commissioner may adopt regulations, in accordance with 657
801		-	the provisions of chapter 54 of the general statutes, to implement the 658
802		-	provisions of this section. 659
803		-	(h) At the close of each fiscal year in which the tax imposed under 660
804		-	the provisions of this section are received by the commissioner, the 661
805		-	Comptroller is authorized to record as revenue for such fiscal year the 662
806		-	amounts of such tax that are received by the commissioner not later 663
807		-	than five business days from the last day of July immediately 664
808		-	following the end of such fiscal year. 665
809		-	Sec. 7. (NEW) (Effective from passage) (a) As used in this section, (1) 666
810		-	"cannabis", "cannabis product", "cannabis retailer" and "Cannabis 667
811		-	Commission" have the same meanings as provided in section 6 of this 668
812		-	act, and (2) "municipality" means any town, city or borough, 669
813		-	consolidated town and city or consolidated town and borough. 670
814		-	(b) (1) On and after the date the Cannabis Commission first issues a 671
815		-	license to a cannabis retailer, there is imposed a local sales tax at the 672
816		-	rate of three per cent on the sale of all cannabis and cannabis products. 673
817		-	Such tax shall be in addition to the tax applicable to such sales under 674
818		-	section 12-408 of the general statutes, as amended by this act, and shall 675
819		-	be administered in the same manner as the tax under said section. 676
820		-	(2) Each cannabis retailer making such sales shall file with the 677
821		-	commissioner, on or before the last day of each calendar quarter, a 678
822		-	return for the calendar quarter immediately preceding. Such returns 679 Substitute Bill No. 1138
	778	+	LCO No. 7328 22 of 39
	779	+
	780	+	(4) "Cannabis product manufacturing facility" means a facility 632
	781	+	licensed by the Cannabis Commission to purchase cannabis from 633
	782	+	cannabis cultivation facilities, manufacture, prepare and package 634
	783	+	cannabis products and sell cannabis and cannabis products to cannabis 635
	784	+	retailers and other cannabis product manufacturing facilities; 636
	785	+	(5) "Cannabis retailer" means a person licensed by the Cannabis 637
	786	+	Commission to purchase cannabis from cannabis cultivation facilities 638
	787	+	as well as to purchase cannabis and cannabis products from cannabis 639
	788	+	product manufacturing facilities and to sell cannabis and cannabis 640
	789	+	products to consumers; 641
	790	+	(6) "Consumer" means an individual who is twenty-one years of age 642
	791	+	or older; and 643
	792	+	(7) "Cannabis Commission" means the commission established 644
	793	+	under section 2 of house bill 7371 of the current session. 645
	794	+	(b) (1) On and after the date the Cannabis Commission first issues a 646
	795	+	license to a cannabis cultivation facility, there is imposed a tax on such 647
	796	+	facilities on the first sale of cannabis within the state at the rate of 648
	797	+	thirty-five dollars per ounce of cannabis flowers and thirteen dollars 649
	798	+	and fifty cents per ounce of cannabis trim. 650
	799	+	(2) Each cannabis cultivation facility making such sales shall file 651
	800	+	with the Commissioner of Revenue Services, on or before the last day 652
	801	+	of each calendar quarter, a return for the calendar quarter immediately 653
	802	+	preceding. Such returns shall be in such form and contain such 654
	803	+	information as the commissioner prescribes, and shall be accompanied 655
	804	+	by a payment of the amount of the tax shown to be due thereon. 656
	805	+	(3) The commissioner shall deposit the amounts received by the 657
	806	+	state from the tax imposed under subdivision (1) of this subsection into 658
	807	+	the Community Development Corporation Trust Fund established 659
	808	+	under section 4 of this act. 660
	809	+	Raised Bill No. 1138
823	810
824	811
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828	812
829		-	shall be in such form and contain such information as the 680
830		-	commissioner prescribes and shall indicate the municipality in which 681
831		-	such sales occurred, and shall be accompanied by a payment of the 682
832		-	total amount of tax shown to be due thereon. 683
833		-	(c) The commissioner shall deposit any local sales tax collected 684
834		-	pursuant to subsection (b) of this section into the municipal cannabis 685
835		-	revenue account established under subsection (d) of this section. 686
836		-	(d) There is established an account to be known as the "municipal 687
837		-	cannabis revenue account" which shall be a separate account within 688
838		-	the General Fund. The account shall contain any moneys required by 689
839		-	law to be deposited in the account. Moneys in the account shall be 690
840		-	expended by the Commissioner of Revenue Services for the purpose of 691
841		-	providing moneys in accordance with this section to municipalities in 692
842		-	which cannabis retailers are selling cannabis and cannabis products to 693
843		-	consumers. 694
844		-	(e) (1) The commissioner shall maintain (A) an accounting of all 695
845		-	sums deposited in the account, aggregated by municipality, (B) a 696
846		-	listing of sums remitted by each cannabis retailer, and (C) such other 697
847		-	information as the commissioner deems necessary for the purposes of 698
848		-	this section. 699
849		-	(2) Commencing in the second calendar quarter following the initial 700
850		-	deposit into the account, the commissioner shall distribute on a 701
851		-	quarterly basis a sum, calculated on a point-of-sale basis, to each 702
852		-	municipality in which a cannabis retailer is located and for which a 703
853		-	point-of-sale can be determined. Any moneys remaining in the account 704
854		-	at the close of the fiscal year for which no point-of-sale can be 705
855		-	determined shall be transferred to the Community Development 706
856		-	Corporation Trust Fund established under section 4 of this act. 707
857		-	(3) The commissioner shall make available to each municipality in 708
858		-	which a cannabis retailer is located any information concerning such 709
859		-	municipality that is maintained under subdivision (1) of this 710 Substitute Bill No. 1138
	813	+	LCO No. 7328 23 of 39
	814	+
	815	+	(c) If any person fails to pay the amount of tax reported due on its 661
	816	+	report within the time specified under this section, there shall be 662
	817	+	imposed a penalty equal to ten per cent of such amount due and 663
	818	+	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 664
	819	+	interest at the rate of one per cent per month or fraction thereof, from 665
	820	+	the due date of such tax until the date of payment. Subject to the 666
	821	+	provisions of section 12-3a of the general statutes, the commissioner 667
	822	+	may waive all or part of the penalties provided under this section 668
	823	+	when it is proven to the commissioner's satisfaction that the failure to 669
	824	+	pay any tax was due to reasonable cause and was not intentional or 670
	825	+	due to neglect. 671
	826	+	(d) Each person, other than a cannabis cultivation facility, who is 672
	827	+	required, on behalf of such facility, to collect, truthfully account for 673
	828	+	and pay over a tax imposed on such facility under this section and 674
	829	+	who wilfully fails to collect, truthfully account for and pay over such 675
	830	+	tax or who wilfully attempts in any manner to evade or defeat the tax 676
	831	+	or the payment thereof, shall, in addition to other penalties provided 677
	832	+	by law, be liable for a penalty equal to the total amount of the tax 678
	833	+	evaded, or not collected, or not accounted for and paid over, including 679
	834	+	any penalty or interest attributable to such wilful failure to collect or 680
	835	+	truthfully account for and pay over such tax or such wilful attempt to 681
	836	+	evade or defeat such tax, provided such penalty shall only be imposed 682
	837	+	against such person in the event that such tax, penalty or interest 683
	838	+	cannot otherwise be collected from such facility. The amount of such 684
	839	+	penalty with respect to which a person may be personally liable under 685
	840	+	this section shall be collected in accordance with the provisions of 686
	841	+	section 12-555a of the general statutes and any amount so collected 687
	842	+	shall be allowed as a credit against the amount of such tax, penalty or 688
	843	+	interest due and owing from the facility. The dissolution of the facility 689
	844	+	shall not discharge any person in relation to any personal liability 690
	845	+	under this section for wilful failure to collect or truthfully account for 691
	846	+	and pay over such tax or for a wilful attempt to evade or defeat such 692
	847	+	tax prior to dissolution, except as otherwise provided in this section. 693
	848	+	Raised Bill No. 1138
860	849
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865	851
866		-	subsection. 711
867		-	(f) If any person fails to pay the amount of tax reported due on its 712
868		-	report within the time specified under this section, there shall be 713
869		-	imposed a penalty equal to ten per cent of such amount due and 714
870		-	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 715
871		-	interest at the rate of one per cent per month or fraction thereof, from 716
872		-	the due date of such tax until the date of payment. Subject to the 717
873		-	provisions of section 12-3a of the general statutes, the commissioner 718
874		-	may waive all or part of the penalties provided under this section 719
875		-	when it is proven to the commissioner's satisfaction that the failure to 720
876		-	pay any tax was due to reasonable cause and was not intentional or 721
877		-	due to neglect. 722
878		-	(g) Each person, other than a cannabis retailer, who is required, on 723
879		-	behalf of such retailer, to collect, truthfully account for and pay over a 724
880		-	tax imposed on such retailer under this section and who wilfully fails 725
881		-	to collect, truthfully account for and pay over such tax or who wilfully 726
882		-	attempts in any manner to evade or defeat the tax or the payment 727
883		-	thereof, shall, in addition to other penalties provided by law, be liable 728
884		-	for a penalty equal to the total amount of the tax evaded, or not 729
885		-	collected, or not accounted for and paid over, including any penalty or 730
886		-	interest attributable to such wilful failure to collect or truthfully 731
887		-	account for and pay over such tax or such wilful attempt to evade or 732
888		-	defeat such tax, provided such penalty shall only be imposed against 733
889		-	such person in the event that such tax, penalty or interest cannot 734
890		-	otherwise be collected from such retailer. The amount of such penalty 735
891		-	with respect to which a person may be personally liable under this 736
892		-	section shall be collected in accordance with the provisions of section 737
893		-	12-555a of the general statutes and any amount so collected shall be 738
894		-	allowed as a credit against the amount of such tax, penalty or interest 739
895		-	due and owing from the retailer. The dissolution of the retailer shall 740
896		-	not discharge any person in relation to any personal liability under this 741
897		-	section for wilful failure to collect or truthfully account for and pay 742
898		-	over such tax or for a wilful attempt to evade or defeat such tax prior 743 Substitute Bill No. 1138
	852	+	LCO No. 7328 24 of 39
	853	+
	854	+	For purposes of this section, "person" includes any individual, 694
	855	+	corporation, limited liability company or partnership and any officer 695
	856	+	or employee of any corporation, including a dissolved corporation, 696
	857	+	and a member or employee of any partnership or limited liability 697
	858	+	company who, as such officer, employee or member, is under a duty to 698
	859	+	file a tax return under this section on behalf of a cannabis cultivation 699
	860	+	facility or to collect or truthfully account for and pay over a tax 700
	861	+	imposed under this section on behalf of such facility. 701
	862	+	(e) No tax credit or credits shall be allowable against the tax 702
	863	+	imposed under this section. 703
	864	+	(f) The provisions of sections 12-551 to 12-554, inclusive, and section 704
	865	+	12-555a of the general statutes shall apply to the provisions of this 705
	866	+	section in the same manner and with the same force and effect as if the 706
	867	+	language of said sections had been incorporated in full into this section 707
	868	+	and had expressly referred to the tax under this section, except to the 708
	869	+	extent that any provision is inconsistent with a provision in this 709
	870	+	section. 710
	871	+	(g) The commissioner may adopt regulations, in accordance with 711
	872	+	the provisions of chapter 54 of the general statutes, to implement the 712
	873	+	provisions of this section. 713
	874	+	(h) At the close of each fiscal year in which the tax imposed under 714
	875	+	the provisions of this section are received by the commissioner, the 715
	876	+	Comptroller is authorized to record as revenue for such fiscal year the 716
	877	+	amounts of such tax that are received by the commissioner not later 717
	878	+	than five business days from the last day of July immediately 718
	879	+	following the end of such fiscal year. 719
	880	+	Sec. 7. (NEW) (Effective from passage) (a) As used in this section, (1) 720
	881	+	"cannabis", "cannabis product", "cannabis retailer" and "Cannabis 721
	882	+	Commission" have the same meanings as provided in section 6 of this 722
	883	+	act, and (2) "municipality" means any town, city or borough, 723
	884	+	consolidated town and city or consolidated town and borough. 724
	885	+	Raised Bill No. 1138
899	886
900	887
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904	888
905		-	to dissolution, except as otherwise provided in this section. For 744
906		-	purposes of this section, "person" includes any individual, corporation, 745
907		-	limited liability company or partnership and any officer or employee 746
908		-	of any corporation, including a dissolved corporation, and a member 747
909		-	or employee of any partnership or limited liability company who, as 748
910		-	such officer, employee or member, is under a duty to file a tax return 749
911		-	under this section on behalf of a cannabis retailer or to collect or 750
912		-	truthfully account for and pay over a tax imposed under this section 751
913		-	on behalf of such retailer. 752
914		-	(h) No tax credit or credits shall be allowable against the tax 753
915		-	imposed under this section. 754
916		-	(i) The provisions of sections 12-551 to 12-554, inclusive, and section 755
917		-	12-555a of the general statutes shall apply to the provisions of this 756
918		-	section in the same manner and with the same force and effect as if the 757
919		-	language of said sections had been incorporated in full into this section 758
920		-	and had expressly referred to the tax under this section, except to the 759
921		-	extent that any provision is inconsistent with a provision in this 760
922		-	section. 761
923		-	(j) The commissioner may adopt regulations, in accordance with the 762
924		-	provisions of chapter 54 of the general statutes, to implement the 763
925		-	provisions of this section. 764
926		-	(k) At the close of each fiscal year in which the tax imposed under 765
927		-	the provisions of this section are received by the commissioner, the 766
928		-	Comptroller is authorized to record as revenue for such fiscal year the 767
929		-	amounts of such tax that are received by the commissioner not later 768
930		-	than five business days from the last day of July immediately 769
931		-	following the end of such fiscal year. 770
932		-	Sec. 8. Subdivision (1) of section 12-408 of the general statutes is 771
933		-	repealed and the following is substituted in lieu thereof (Effective from 772
934		-	passage): 773
935		-	(1) (A) For the privilege of making any sales, as defined in 774 Substitute Bill No. 1138
	889	+	LCO No. 7328 25 of 39
	890	+
	891	+	(b) (1) On and after the date the Cannabis Commission first issues a 725
	892	+	license to a cannabis retailer, there is imposed a local sales tax at the 726
	893	+	rate of three per cent on the sale of all cannabis and cannabis products. 727
	894	+	Such tax shall be in addition to the tax applicable to such sales under 728
	895	+	section 12-408 of the general statutes, as amended by this act. 729
	896	+	(2) Each cannabis retailer making such sales shall file with the 730
	897	+	commissioner, on or before the last day of each calendar quarter, a 731
	898	+	return for the calendar quarter immediately preceding. Such returns 732
	899	+	shall be in such form and contain such information as the 733
	900	+	commissioner prescribes and shall indicate the municipality in which 734
	901	+	such sales occurred, and shall be accompanied by a payment of the 735
	902	+	total amount of tax shown to be due thereon. 736
	903	+	(c) The commissioner shall deposit any local sales tax collected 737
	904	+	pursuant to subsection (b) of this section into the municipal cannabis 738
	905	+	revenue account established under subsection (d) of this section. 739
	906	+	(d) There is established an account to be known as the "municipal 740
	907	+	cannabis revenue account" which shall be a separate account within 741
	908	+	the General Fund. The account shall contain any moneys required by 742
	909	+	law to be deposited in the account. Moneys in the account shall be 743
	910	+	expended by the Commissioner of Revenue Services for the purpose of 744
	911	+	providing moneys in accordance with this section to municipalities in 745
	912	+	which cannabis retailers are selling cannabis and cannabis products to 746
	913	+	consumers. 747
	914	+	(e) (1) The commissioner shall maintain (A) an accounting of all 748
	915	+	sums deposited in the account, aggregated by municipality, (B) a 749
	916	+	listing of sums remitted by each cannabis retailer, and (C) such other 750
	917	+	information as the commissioner deems necessary for the purposes of 751
	918	+	this section. 752
	919	+	(2) Commencing in the second calendar quarter following the initial 753
	920	+	deposit into the account, the commissioner shall distribute on a 754
	921	+	quarterly basis a sum, calculated on a point-of-sale basis, to each 755
	922	+	Raised Bill No. 1138
936	923
937	924
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940		-	26 of 36
941	925
942		-	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 775
943		-	for a consideration, a tax is hereby imposed on all retailers at the rate 776
944		-	of six and thirty-five-hundredths per cent of the gross receipts of any 777
945		-	retailer from the sale of all tangible personal property sold at retail or 778
946		-	from the rendering of any services constituting a sale in accordance 779
947		-	with subdivision (2) of subsection (a) of section 12-407, except, in lieu 780
948		-	of said rate, [of six and thirty-five-hundredths per cent,] the rates 781
949		-	provided in subparagraphs (B) to (H), inclusive, of this subdivision; 782
950		-	(B) (i) At a rate of fifteen per cent with respect to each transfer of 783
951		-	occupancy, from the total amount of rent received by a hotel or 784
952		-	lodging house for the first period not exceeding thirty consecutive 785
953		-	calendar days; 786
954		-	(ii) At a rate of eleven per cent with respect to each transfer of 787
955		-	occupancy, from the total amount of rent received by a bed and 788
956		-	breakfast establishment for the first period not exceeding thirty 789
957		-	consecutive calendar days; 790
958		-	(C) With respect to the sale of a motor vehicle to any individual who 791
959		-	is a member of the armed forces of the United States and is on full-time 792
960		-	active duty in Connecticut and who is considered, under 50 App USC 793
961		-	574, a resident of another state, or to any such individual and the 794
962		-	spouse thereof, at a rate of four and one-half per cent of the gross 795
963		-	receipts of any retailer from such sales, provided such retailer requires 796
964		-	and maintains a declaration by such individual, prescribed as to form 797
965		-	by the commissioner and bearing notice to the effect that false 798
966		-	statements made in such declaration are punishable, or other evidence, 799
967		-	satisfactory to the commissioner, concerning the purchaser's state of 800
968		-	residence under 50 App USC 574; 801
969		-	(D) (i) With respect to the sales of computer and data processing 802
970		-	services occurring on or after July 1, 2001, at the rate of one per cent, 803
971		-	and (ii) with respect to sales of Internet access services, on and after 804
972		-	July 1, 2001, such services shall be exempt from such tax; 805 Substitute Bill No. 1138
	926	+	LCO No. 7328 26 of 39
	927	+
	928	+	municipality in which a cannabis retailer is located and for which a 756
	929	+	point-of-sale can be determined. Any moneys remaining in the account 757
	930	+	at the close of the fiscal year for which no point-of-sale can be 758
	931	+	determined shall be transferred to the Community Development 759
	932	+	Corporation Trust Fund established under section 4 of this act. 760
	933	+	(3) The commissioner shall make available to each municipality in 761
	934	+	which a cannabis retailer is located any information concerning such 762
	935	+	municipality that is maintained under subdivision (1) of this 763
	936	+	subsection. 764
	937	+	(f) If any person fails to pay the amount of tax reported due on its 765
	938	+	report within the time specified under this section, there shall be 766
	939	+	imposed a penalty equal to ten per cent of such amount due and 767
	940	+	unpaid, or fifty dollars, whichever is greater. Such amount shall bear 768
	941	+	interest at the rate of one per cent per month or fraction thereof, from 769
	942	+	the due date of such tax until the date of payment. Subject to the 770
	943	+	provisions of section 12-3a of the general statutes, the commissioner 771
	944	+	may waive all or part of the penalties provided under this section 772
	945	+	when it is proven to the commissioner's satisfaction that the failure to 773
	946	+	pay any tax was due to reasonable cause and was not intentional or 774
	947	+	due to neglect. 775
	948	+	(g) Each person, other than a cannabis retailer, who is required, on 776
	949	+	behalf of such retailer, to collect, truthfully account for and pay over a 777
	950	+	tax imposed on such retailer under this section and who wilfully fails 778
	951	+	to collect, truthfully account for and pay over such tax or who wilfully 779
	952	+	attempts in any manner to evade or defeat the tax or the payment 780
	953	+	thereof, shall, in addition to other penalties provided by law, be liable 781
	954	+	for a penalty equal to the total amount of the tax evaded, or not 782
	955	+	collected, or not accounted for and paid over, including any penalty or 783
	956	+	interest attributable to such wilful failure to collect or truthfully 784
	957	+	account for and pay over such tax or such wilful attempt to evade or 785
	958	+	defeat such tax, provided such penalty shall only be imposed against 786
	959	+	such person in the event that such tax, penalty or interest cannot 787
	960	+	Raised Bill No. 1138
973	961
974	962
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977		-	27 of 36
978	963
979		-	(E) (i) With respect to the sales of labor that is otherwise taxable 806
980		-	under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 807
981		-	section 12-407 on existing vessels and repair or maintenance services 808
982		-	on vessels occurring on and after July 1, 1999, such services shall be 809
983		-	exempt from such tax; 810
984		-	(ii) With respect to the sale of a vessel, a motor for a vessel or a 811
985		-	trailer used for transporting a vessel, at the rate of two and ninety-812
986		-	nine-hundredths per cent, except that the sale of a vessel shall be 813
987		-	exempt from such tax if such vessel is docked in this state for sixty or 814
988		-	fewer days in a calendar year; 815
989		-	(F) With respect to patient care services for which payment is 816
990		-	received by the hospital on or after July 1, 1999, and prior to July 1, 817
991		-	2001, at the rate of five and three-fourths per cent and on and after July 818
992		-	1, 2001, such services shall be exempt from such tax; 819
993		-	(G) With respect to the rental or leasing of a passenger motor 820
994		-	vehicle for a period of thirty consecutive calendar days or less, at a rate 821
995		-	of nine and thirty-five-hundredths per cent; 822
996		-	(H) With respect to the sale of (i) a motor vehicle for a sales price 823
997		-	exceeding fifty thousand dollars, at a rate of seven and three-fourths 824
998		-	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 825
999		-	for a sales price exceeding five thousand dollars, at a rate of seven and 826
1000		-	three-fourths per cent on the entire sales price, and (iii) an article of 827
1001		-	clothing or footwear intended to be worn on or about the human body, 828
1002		-	a handbag, luggage, umbrella, wallet or watch for a sales price 829
1003		-	exceeding one thousand dollars, at a rate of seven and three-fourths 830
1004		-	per cent on the entire sales price. For purposes of this subparagraph, 831
1005		-	"motor vehicle" has the meaning provided in section 14-1, but does not 832
1006		-	include a motor vehicle subject to the provisions of subparagraph (C) 833
1007		-	of this subdivision, a motor vehicle having a gross vehicle weight 834
1008		-	rating over twelve thousand five hundred pounds, or a motor vehicle 835
1009		-	having a gross vehicle weight rating of twelve thousand five hundred 836
1010		-	pounds or less that is not used for private passenger purposes, but is 837 Substitute Bill No. 1138
	964	+	LCO No. 7328 27 of 39
	965	+
	966	+	otherwise be collected from such retailer. The amount of such penalty 788
	967	+	with respect to which a person may be personally liable under this 789
	968	+	section shall be collected in accordance with the provisions of section 790
	969	+	12-555a of the general statutes and any amount so collected shall be 791
	970	+	allowed as a credit against the amount of such tax, penalty or interest 792
	971	+	due and owing from the retailer. The dissolution of the retailer shall 793
	972	+	not discharge any person in relation to any personal liability under this 794
	973	+	section for wilful failure to collect or truthfully account for and pay 795
	974	+	over such tax or for a wilful attempt to evade or defeat such tax prior 796
	975	+	to dissolution, except as otherwise provided in this section. For 797
	976	+	purposes of this section, "person" includes any individual, corporation, 798
	977	+	limited liability company or partnership and any officer or employee 799
	978	+	of any corporation, including a dissolved corporation, and a member 800
	979	+	or employee of any partnership or limited liability company who, as 801
	980	+	such officer, employee or member, is under a duty to file a tax return 802
	981	+	under this section on behalf of a cannabis retailer or to collect or 803
	982	+	truthfully account for and pay over a tax imposed under this section 804
	983	+	on behalf of such retailer. 805
	984	+	(h) No tax credit or credits shall be allowable against the tax 806
	985	+	imposed under this section. 807
	986	+	(i) The provisions of sections 12-551 to 12-554, inclusive, and section 808
	987	+	12-555a of the general statutes shall apply to the provisions of this 809
	988	+	section in the same manner and with the same force and effect as if the 810
	989	+	language of said sections had been incorporated in full into this section 811
	990	+	and had expressly referred to the tax under this section, except to the 812
	991	+	extent that any provision is inconsistent with a provision in this 813
	992	+	section. 814
	993	+	(j) The commissioner may adopt regulations, in accordance with the 815
	994	+	provisions of chapter 54 of the general statutes, to implement the 816
	995	+	provisions of this section. 817
	996	+	(k) At the close of each fiscal year in which the tax imposed under 818
	997	+	Raised Bill No. 1138
1011	998
1012	999
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1016	1000
1017		-	designed or used to transport merchandise, freight or persons in 838
1018		-	connection with any business enterprise and issued a commercial 839
1019		-	registration or more specific type of registration by the Department of 840
1020		-	Motor Vehicles; 841
1021		-	(I) The rate of tax imposed by this chapter shall be applicable to all 842
1022		-	retail sales upon the effective date of such rate, except that a new rate 843
1023		-	which represents an increase in the rate applicable to the sale shall not 844
1024		-	apply to any sales transaction wherein a binding sales contract without 845
1025		-	an escalator clause has been entered into prior to the effective date of 846
1026		-	the new rate and delivery is made within ninety days after the effective 847
1027		-	date of the new rate. For the purposes of payment of the tax imposed 848
1028		-	under this section, any retailer of services taxable under subdivision 849
1029		-	(37) of subsection (a) of section 12-407, who computes taxable income, 850
1030		-	for purposes of taxation under the Internal Revenue Code of 1986, or 851
1031		-	any subsequent corresponding internal revenue code of the United 852
1032		-	States, as from time to time amended, on an accounting basis which 853
1033		-	recognizes only cash or other valuable consideration actually received 854
1034		-	as income and who is liable for such tax only due to the rendering of 855
1035		-	such services may make payments related to such tax for the period 856
1036		-	during which such income is received, without penalty or interest, 857
1037		-	without regard to when such service is rendered; 858
1038		-	(J) (i) For calendar quarters ending on or after September 30, 2019, 859
1039		-	the commissioner shall deposit into the regional planning incentive 860
1040		-	account, established pursuant to section 4-66k, six and seven-tenths 861
1041		-	per cent of the amounts received by the state from the tax imposed 862
1042		-	under subparagraph (B) of this subdivision and ten and seven-tenths 863
1043		-	per cent of the amounts received by the state from the tax imposed 864
1044		-	under subparagraph (G) of this subdivision; 865
1045		-	(ii) For calendar quarters ending on or after September 30, 2018, the 866
1046		-	commissioner shall deposit into the Tourism Fund established under 867
1047		-	section 10-395b ten per cent of the amounts received by the state from 868
1048		-	the tax imposed under subparagraph (B) of this subdivision; 869 Substitute Bill No. 1138
	1001	+	LCO No. 7328 28 of 39
	1002	+
	1003	+	the provisions of this section are received by the commissioner, the 819
	1004	+	Comptroller is authorized to record as revenue for such fiscal year the 820
	1005	+	amounts of such tax that are received by the commissioner not later 821
	1006	+	than five business days from the last day of July immediately 822
	1007	+	following the end of such fiscal year. 823
	1008	+	Sec. 8. Subdivision (1) of section 12-408 of the general statutes is 824
	1009	+	repealed and the following is substituted in lieu thereof (Effective from 825
	1010	+	passage): 826
	1011	+	(1) (A) For the privilege of making any sales, as defined in 827
	1012	+	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 828
	1013	+	for a consideration, a tax is hereby imposed on all retailers at the rate 829
	1014	+	of six and thirty-five-hundredths per cent of the gross receipts of any 830
	1015	+	retailer from the sale of all tangible personal property sold at retail or 831
	1016	+	from the rendering of any services constituting a sale in accordance 832
	1017	+	with subdivision (2) of subsection (a) of section 12-407, except, in lieu 833
	1018	+	of said rate, [of six and thirty-five-hundredths per cent,] the rates 834
	1019	+	provided in subparagraphs (B) to (H), inclusive, of this subdivision; 835
	1020	+	(B) (i) At a rate of fifteen per cent with respect to each transfer of 836
	1021	+	occupancy, from the total amount of rent received by a hotel or 837
	1022	+	lodging house for the first period not exceeding thirty consecutive 838
	1023	+	calendar days; 839
	1024	+	(ii) At a rate of eleven per cent with respect to each transfer of 840
	1025	+	occupancy, from the total amount of rent received by a bed and 841
	1026	+	breakfast establishment for the first period not exceeding thirty 842
	1027	+	consecutive calendar days; 843
	1028	+	(C) With respect to the sale of a motor vehicle to any individual who 844
	1029	+	is a member of the armed forces of the United States and is on full-time 845
	1030	+	active duty in Connecticut and who is considered, under 50 App USC 846
	1031	+	574, a resident of another state, or to any such individual and the 847
	1032	+	spouse thereof, at a rate of four and one-half per cent of the gross 848
	1033	+	receipts of any retailer from such sales, provided such retailer requires 849
	1034	+	Raised Bill No. 1138
1049	1035
1050	1036
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1054	1037
1055		-	(K) For calendar months commencing on or after July 1, 2021, the 870
1056		-	commissioner shall deposit into the municipal revenue sharing 871
1057		-	account established pursuant to section 4-66l seven and nine-tenths per 872
1058		-	cent of the amounts received by the state from the tax imposed under 873
1059		-	subparagraph (A) of this subdivision; [and] 874
1060		-	(L) (i) For calendar months commencing on or after July 1, 2017, the 875
1061		-	commissioner shall deposit into the Special Transportation Fund 876
1062		-	established under section 13b-68 seven and nine-tenths per cent of the 877
1063		-	amounts received by the state from the tax imposed under 878
1064		-	subparagraph (A) of this subdivision; 879
1065		-	(ii) For calendar months commencing on or after July 1, 2018, but 880
1066		-	prior to July 1, 2019, the commissioner shall deposit into the Special 881
1067		-	Transportation Fund established under section 13b-68 eight per cent of 882
1068		-	the amounts received by the state from the tax imposed under 883
1069		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 884
1070		-	vehicle; 885
1071		-	(iii) For calendar months commencing on or after July 1, 2019, but 886
1072		-	prior to July 1, 2020, the commissioner shall deposit into the Special 887
1073		-	Transportation Fund established under section 13b-68 thirty-three per 888
1074		-	cent of the amounts received by the state from the tax imposed under 889
1075		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 890
1076		-	vehicle; 891
1077		-	(iv) For calendar months commencing on or after July 1, 2020, but 892
1078		-	prior to July 1, 2021, the commissioner shall deposit into the Special 893
1079		-	Transportation Fund established under section 13b-68 fifty-six per cent 894
1080		-	of the amounts received by the state from the tax imposed under 895
1081		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 896
1082		-	vehicle; 897
1083		-	(v) For calendar months commencing on or after July 1, 2021, but 898
1084		-	prior to July 1, 2022, the commissioner shall deposit into the Special 899
1085		-	Transportation Fund established under section 13b-68 seventy-five per 900 Substitute Bill No. 1138
	1038	+	LCO No. 7328 29 of 39
	1039	+
	1040	+	and maintains a declaration by such individual, prescribed as to form 850
	1041	+	by the commissioner and bearing notice to the effect that false 851
	1042	+	statements made in such declaration are punishable, or other evidence, 852
	1043	+	satisfactory to the commissioner, concerning the purchaser's state of 853
	1044	+	residence under 50 App USC 574; 854
	1045	+	(D) (i) With respect to the sales of computer and data processing 855
	1046	+	services occurring on or after July 1, 2001, at the rate of one per cent, 856
	1047	+	and (ii) with respect to sales of Internet access services, on and after 857
	1048	+	July 1, 2001, such services shall be exempt from such tax; 858
	1049	+	(E) (i) With respect to the sales of labor that is otherwise taxable 859
	1050	+	under subparagraph (C) or (G) of subdivision (2) of subsection (a) of 860
	1051	+	section 12-407 on existing vessels and repair or maintenance services 861
	1052	+	on vessels occurring on and after July 1, 1999, such services shall be 862
	1053	+	exempt from such tax; 863
	1054	+	(ii) With respect to the sale of a vessel, a motor for a vessel or a 864
	1055	+	trailer used for transporting a vessel, at the rate of two and ninety-865
	1056	+	nine-hundredths per cent, except that the sale of a vessel shall be 866
	1057	+	exempt from such tax if such vessel is docked in this state for sixty or 867
	1058	+	fewer days in a calendar year; 868
	1059	+	(F) With respect to patient care services for which payment is 869
	1060	+	received by the hospital on or after July 1, 1999, and prior to July 1, 870
	1061	+	2001, at the rate of five and three-fourths per cent and on and after July 871
	1062	+	1, 2001, such services shall be exempt from such tax; 872
	1063	+	(G) With respect to the rental or leasing of a passenger motor 873
	1064	+	vehicle for a period of thirty consecutive calendar days or less, at a rate 874
	1065	+	of nine and thirty-five-hundredths per cent; 875
	1066	+	(H) With respect to the sale of (i) a motor vehicle for a sales price 876
	1067	+	exceeding fifty thousand dollars, at a rate of seven and three-fourths 877
	1068	+	per cent on the entire sales price, (ii) jewelry, whether real or imitation, 878
	1069	+	for a sales price exceeding five thousand dollars, at a rate of seven and 879
	1070	+	Raised Bill No. 1138
1086	1071
1087	1072
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1090		-	30 of 36
1091	1073
1092		-	cent of the amounts received by the state from the tax imposed under 901
1093		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 902
1094		-	vehicle; and 903
1095		-	(vi) For calendar months commencing on or after July 1, 2022, the 904
1096		-	commissioner shall deposit into the Special Transportation Fund 905
1097		-	established under section 13b-68 one hundred per cent of the amounts 906
1098		-	received by the state from the tax imposed under subparagraphs (A) 907
1099		-	and (H) of this subdivision on the sale of a motor vehicle; [.] and 908
1100		-	(M) For calendar quarters ending on or after the initial deposit of the 909
1101		-	tax on the sale of cannabis and cannabis products, as both terms are 910
1102		-	defined in section 6 of this act, the commissioner shall deposit into the 911
1103		-	Community Development Corporation Trust Fund established under 912
1104		-	section 4 of this act one hundred per cent of the amounts received and 913
1105		-	retained by the state from sales subject to the tax under subsection (b) 914
1106		-	of section 7 of this act. 915
1107		-	Sec. 9. Section 36a-455a of the general statutes is repealed and the 916
1108		-	following is substituted in lieu thereof (Effective from passage): 917
1109		-	A Connecticut credit union may: 918
1110		-	(1) Transact a general credit union business and exercise by its 919
1111		-	governing board or duly authorized members of senior management, 920
1112		-	subject to applicable law, all such incidental powers as are consistent 921
1113		-	with its purposes. The express powers authorized for a Connecticut 922
1114		-	credit union under this section do not preclude the existence of 923
1115		-	additional powers deemed to be incidental to the transaction of a 924
1116		-	general credit union business pursuant to this subdivision; 925
1117		-	(2) (A) Issue shares to its members and receive payments on shares 926
1118		-	from its members and from those nonmembers specified in subsection 927
1119		-	(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 928
1120		-	36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 929
1121		-	receive deposits of members and nonmembers subject to provisions of 930
1122		-	sections 36a-456a and 36a-456b, (C) reduce the amount of its member 931 Substitute Bill No. 1138
	1074	+	LCO No. 7328 30 of 39
	1075	+
	1076	+	three-fourths per cent on the entire sales price, and (iii) an article of 880
	1077	+	clothing or footwear intended to be worn on or about the human body, 881
	1078	+	a handbag, luggage, umbrella, wallet or watch for a sales price 882
	1079	+	exceeding one thousand dollars, at a rate of seven and three-fourths 883
	1080	+	per cent on the entire sales price. For purposes of this subparagraph, 884
	1081	+	"motor vehicle" has the meaning provided in section 14-1, but does not 885
	1082	+	include a motor vehicle subject to the provisions of subparagraph (C) 886
	1083	+	of this subdivision, a motor vehicle having a gross vehicle weight 887
	1084	+	rating over twelve thousand five hundred pounds, or a motor vehicle 888
	1085	+	having a gross vehicle weight rating of twelve thousand five hundred 889
	1086	+	pounds or less that is not used for private passenger purposes, but is 890
	1087	+	designed or used to transport merchandise, freight or persons in 891
	1088	+	connection with any business enterprise and issued a commercial 892
	1089	+	registration or more specific type of registration by the Department of 893
	1090	+	Motor Vehicles; 894
	1091	+	(I) The rate of tax imposed by this chapter shall be applicable to all 895
	1092	+	retail sales upon the effective date of such rate, except that a new rate 896
	1093	+	which represents an increase in the rate applicable to the sale shall not 897
	1094	+	apply to any sales transaction wherein a binding sales contract without 898
	1095	+	an escalator clause has been entered into prior to the effective date of 899
	1096	+	the new rate and delivery is made within ninety days after the effective 900
	1097	+	date of the new rate. For the purposes of payment of the tax imposed 901
	1098	+	under this section, any retailer of services taxable under subdivision 902
	1099	+	(37) of subsection (a) of section 12-407, who computes taxable income, 903
	1100	+	for purposes of taxation under the Internal Revenue Code of 1986, or 904
	1101	+	any subsequent corresponding internal revenue code of the United 905
	1102	+	States, as from time to time amended, on an accounting basis which 906
	1103	+	recognizes only cash or other valuable consideration actually received 907
	1104	+	as income and who is liable for such tax only due to the rendering of 908
	1105	+	such services may make payments related to such tax for the period 909
	1106	+	during which such income is received, without penalty or interest, 910
	1107	+	without regard to when such service is rendered; 911
	1108	+	(J) (i) For calendar quarters ending on or after September 30, 2019, 912
	1109	+	Raised Bill No. 1138
1123	1110
1124	1111
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1127		-	31 of 36
1128	1112
1129		-	and nonmember shares and deposits, (D) expel members and cancel 932
1130		-	shares in accordance with section 36a-439a, and (E) provide check 933
1131		-	cashing and wire and electronic transfer services to nonmembers who 934
1132		-	are within such credit union's field of membership; 935
1133		-	(3) Make and use its best efforts to make secured and unsecured 936
1134		-	loans and other extensions of credit to its members in accordance with 937
1135		-	section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 938
1136		-	(4) Invest its funds in accordance with section 36a-459a; 939
1137		-	(5) Declare and pay dividends in accordance with sections 36a-441a 940
1138		-	and 36a-456c, and pay interest refunds to borrowers; 941
1139		-	(6) Act as a finder or agent for the sale of insurance and fixed and 942
1140		-	variable rate annuities directly, sell insurance and such annuities 943
1141		-	indirectly through a Connecticut credit union service organization, or 944
1142		-	enter into arrangements with third-party marketing organizations for 945
1143		-	the sale by such third-party marketing organizations of insurance or 946
1144		-	such annuities on the premises of the Connecticut credit union or to 947
1145		-	members of the Connecticut credit union, provided: (A) Such 948
1146		-	insurance and annuities are issued or purchased by or from an 949
1147		-	insurance company licensed in accordance with section 38a-41; and (B) 950
1148		-	the Connecticut credit union, Connecticut credit union service 951
1149		-	organization or third-party marketing organization, and any officer 952
1150		-	and employee thereof, shall be licensed as required by section 38a-769 953
1151		-	before engaging in any of the activities authorized by this subdivision. 954
1152		-	As used in this subdivision, "annuities" and "insurance" have the same 955
1153		-	meanings as set forth in section 38a-41, except that "insurance" does 956
1154		-	not include title insurance. The provisions of this subdivision do not 957
1155		-	authorize a Connecticut credit union or Connecticut credit union 958
1156		-	service organization to underwrite insurance or annuities; 959
1157		-	(7) Borrow money to an amount not exceeding fifty per cent of the 960
1158		-	total assets of the Connecticut credit union provided the credit union 961
1159		-	shall give prior notice to the commissioner in writing of its intention to 962 Substitute Bill No. 1138
	1113	+	LCO No. 7328 31 of 39
	1114	+
	1115	+	the commissioner shall deposit into the regional planning incentive 913
	1116	+	account, established pursuant to section 4-66k, six and seven-tenths 914
	1117	+	per cent of the amounts received by the state from the tax imposed 915
	1118	+	under subparagraph (B) of this subdivision and ten and seven-tenths 916
	1119	+	per cent of the amounts received by the state from the tax imposed 917
	1120	+	under subparagraph (G) of this subdivision; 918
	1121	+	(ii) For calendar quarters ending on or after September 30, 2018, the 919
	1122	+	commissioner shall deposit into the Tourism Fund established under 920
	1123	+	section 10-395b ten per cent of the amounts received by the state from 921
	1124	+	the tax imposed under subparagraph (B) of this subdivision; 922
	1125	+	(K) For calendar months commencing on or after July 1, 2021, the 923
	1126	+	commissioner shall deposit into the municipal revenue sharing 924
	1127	+	account established pursuant to section 4-66l seven and nine-tenths per 925
	1128	+	cent of the amounts received by the state from the tax imposed under 926
	1129	+	subparagraph (A) of this subdivision; [and] 927
	1130	+	(L) (i) For calendar months commencing on or after July 1, 2017, the 928
	1131	+	commissioner shall deposit into the Special Transportation Fund 929
	1132	+	established under section 13b-68 seven and nine-tenths per cent of the 930
	1133	+	amounts received by the state from the tax imposed under 931
	1134	+	subparagraph (A) of this subdivision; 932
	1135	+	(ii) For calendar months commencing on or after July 1, 2018, but 933
	1136	+	prior to July 1, 2019, the commissioner shall deposit into the Special 934
	1137	+	Transportation Fund established under section 13b-68 eight per cent of 935
	1138	+	the amounts received by the state from the tax imposed under 936
	1139	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 937
	1140	+	vehicle; 938
	1141	+	(iii) For calendar months commencing on or after July 1, 2019, but 939
	1142	+	prior to July 1, 2020, the commissioner shall deposit into the Special 940
	1143	+	Transportation Fund established under section 13b-68 thirty-three per 941
	1144	+	cent of the amounts received by the state from the tax imposed under 942
	1145	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 943
	1146	+	Raised Bill No. 1138
1160	1147
1161	1148
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1164		-	32 of 36
1165	1149
1166		-	borrow amounts in excess of thirty-five per cent of its total assets; 963
1167		-	(8) Act as fiscal agent for the federal government, this state or any 964
1168		-	agency or political subdivision thereof; 965
1169		-	(9) Provide loan processing, loan servicing, member check and 966
1170		-	money order cashing services, disbursement of share withdrawals and 967
1171		-	loan proceeds, money orders, internal audits, automated teller 968
1172		-	machine services, ACH and wire transfer services, prepaid debit cards, 969
1173		-	payroll cards, digital wallet services, coin and currency services, 970
1174		-	remote deposit capture services, electronic banking and other similar 971
1175		-	services to other Connecticut credit unions, federal credit unions, 972
1176		-	federally insured financial institutions and out-of-state credit unions; 973
1177		-	(10) Provide finder services to its members, including the offering of 974
1178		-	third party products and services through the sale of advertising space 975
1179		-	on its web site, account statements and receipts, and the sale of 976
1180		-	statistical or consumer financial information to outside vendors in 977
1181		-	accordance with sections 36a-40 to 36a-45, inclusive, in order to 978
1182		-	facilitate the sale of such products to the members of such Connecticut 979
1183		-	credit union; 980
1184		-	(11) With the prior approval of the commissioner, exercise fiduciary 981
1185		-	powers; 982
1186		-	(12) Maintain and rent safe deposit boxes within suitably 983
1187		-	constructed vaults, provided the Connecticut credit union has 984
1188		-	adequate insurance coverage for losses related to such rental; 985
1189		-	(13) Provide certification services, including notary services, 986
1190		-	signature guaranties, certification of electronic signatures and share 987
1191		-	draft certifications; 988
1192		-	(14) Act as agent (A) in the collection of taxes for any qualified 989
1193		-	treasurer of any taxing district or qualified collector of taxes, or (B) for 990
1194		-	any electric distribution, gas, water or telephone company operating 991
1195		-	within this state in receiving moneys due such company for utility 992 Substitute Bill No. 1138
	1150	+	LCO No. 7328 32 of 39
	1151	+
	1152	+	vehicle; 944
	1153	+	(iv) For calendar months commencing on or after July 1, 2020, but 945
	1154	+	prior to July 1, 2021, the commissioner shall deposit into the Special 946
	1155	+	Transportation Fund established under section 13b-68 fifty-six per cent 947
	1156	+	of the amounts received by the state from the tax imposed under 948
	1157	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 949
	1158	+	vehicle; 950
	1159	+	(v) For calendar months commencing on or after July 1, 2021, but 951
	1160	+	prior to July 1, 2022, the commissioner shall deposit into the Special 952
	1161	+	Transportation Fund established under section 13b-68 seventy-five per 953
	1162	+	cent of the amounts received by the state from the tax imposed under 954
	1163	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 955
	1164	+	vehicle; and 956
	1165	+	(vi) For calendar months commencing on or after July 1, 2022, the 957
	1166	+	commissioner shall deposit into the Special Transportation Fund 958
	1167	+	established under section 13b-68 one hundred per cent of the amounts 959
	1168	+	received by the state from the tax imposed under subparagraphs (A) 960
	1169	+	and (H) of this subdivision on the sale of a motor vehicle; and 961
	1170	+	(M) For calendar quarters ending on or after the initial deposit of the 962
	1171	+	tax on the sale of cannabis and cannabis products, as both terms are 963
	1172	+	defined in section 6 of this act, the commissioner shall deposit into the 964
	1173	+	Community Development Corporation Trust Fund established under 965
	1174	+	section 4 of this act one hundred per cent of the amounts received by 966
	1175	+	the state from the tax imposed under this section. 967
	1176	+	Sec. 9. Section 36a-455a of the general statutes is repealed and the 968
	1177	+	following is substituted in lieu thereof (Effective from passage): 969
	1178	+	A Connecticut credit union may: 970
	1179	+	(1) Transact a general credit union business and exercise by its 971
	1180	+	governing board or duly authorized members of senior management, 972
	1181	+	Raised Bill No. 1138
1196	1182
1197	1183
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1200		-	33 of 36
1201	1184
1202		-	services furnished by it; 993
1203		-	(15) Issue and sell securities which (A) are guaranteed by the 994
1204		-	Federal National Mortgage Association or any other agency or 995
1205		-	instrumentality authorized by state or federal law to create a 996
1206		-	secondary market with respect to extensions of credit of the type 997
1207		-	originated by the Connecticut credit union, or (B) subject to the 998
1208		-	approval of the commissioner, relate to extensions of credit originated 999
1209		-	by the Connecticut credit union and are guaranteed or insured by a 1000
1210		-	financial guaranty insurance company or comparable private entity; 1001
1211		-	(16) Establish a charitable fund, either in the form of a charitable 1002
1212		-	trust or a nonprofit corporation to assist in making charitable 1003
1213		-	contributions, provided (A) the trust or nonprofit corporation is 1004
1214		-	exempt from federal income taxation and may accept charitable 1005
1215		-	contributions under Section 501 of the Internal Revenue Code of 1986, 1006
1216		-	or any subsequent corresponding internal revenue code of the United 1007
1217		-	States, as from time to time amended, (B) the trust or nonprofit 1008
1218		-	corporation's operations are disclosed fully to the commissioner upon 1009
1219		-	request, and (C) the trust department of the credit union or one or 1010
1220		-	more directors or members of senior management of the credit union 1011
1221		-	act as trustees or directors of the fund; 1012
1222		-	(17) In the discretion of a majority of its governing board, make 1013
1223		-	contributions or gifts to or for the use of any corporation, trust or 1014
1224		-	community chest, fund or foundation created or organized under the 1015
1225		-	laws of the United States or of this state and organized and operated 1016
1226		-	exclusively for charitable, educational or public welfare purposes, or of 1017
1227		-	any hospital which is located in this state and which is exempt from 1018
1228		-	federal income taxes and to which contributions are deductible under 1019
1229		-	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1020
1230		-	corresponding internal revenue code of the United States, as from time 1021
1231		-	to time amended; 1022
1232		-	(18) Subject to the provisions of section 36a-455b, sell, pledge or 1023
1233		-	assign any or all of its outstanding extensions of credit to any other 1024 Substitute Bill No. 1138
	1185	+	LCO No. 7328 33 of 39
	1186	+
	1187	+	subject to applicable law, all such incidental powers as are consistent 973
	1188	+	with its purposes. The express powers authorized for a Connecticut 974
	1189	+	credit union under this section do not preclude the existence of 975
	1190	+	additional powers deemed to be incidental to the transaction of a 976
	1191	+	general credit union business pursuant to this subdivision; 977
	1192	+	(2) (A) Issue shares to its members and receive payments on shares 978
	1193	+	from its members and from those nonmembers specified in subsection 979
	1194	+	(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 980
	1195	+	36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 981
	1196	+	receive deposits of members and nonmembers subject to provisions of 982
	1197	+	sections 36a-456a and 36a-456b, (C) reduce the amount of its member 983
	1198	+	and nonmember shares and deposits, (D) expel members and cancel 984
	1199	+	shares in accordance with section 36a-439a, and (E) provide check 985
	1200	+	cashing and wire and electronic transfer services to nonmembers who 986
	1201	+	are within such credit union's field of membership; 987
	1202	+	(3) Make and use its best efforts to make secured and unsecured 988
	1203	+	loans and other extensions of credit to its members in accordance with 989
	1204	+	section 36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 990
	1205	+	(4) Invest its funds in accordance with section 36a-459a; 991
	1206	+	(5) Declare and pay dividends in accordance with sections 36a-441a 992
	1207	+	and 36a-456c, and pay interest refunds to borrowers; 993
	1208	+	(6) Act as a finder or agent for the sale of insurance and fixed and 994
	1209	+	variable rate annuities directly, sell insurance and such annuities 995
	1210	+	indirectly through a Connecticut credit union service organization, or 996
	1211	+	enter into arrangements with third-party marketing organizations for 997
	1212	+	the sale by such third-party marketing organizations of insurance or 998
	1213	+	such annuities on the premises of the Connecticut credit union or to 999
	1214	+	members of the Connecticut credit union, provided: (A) Such 1000
	1215	+	insurance and annuities are issued or purchased by or from an 1001
	1216	+	insurance company licensed in accordance with section 38a-41; and (B) 1002
	1217	+	the Connecticut credit union, Connecticut credit union service 1003
	1218	+	Raised Bill No. 1138
1234	1219
1235	1220
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1238		-	34 of 36
1239	1221
1240		-	lending institution, credit union service organization or quasi-1025
1241		-	governmental entity and any government-sponsored enterprise, and 1026
1242		-	act as collecting, remitting and servicing agent in connection with any 1027
1243		-	such extension of credit and charge for its acts as agent. Any such 1028
1244		-	credit union may purchase the minimum amount of capital stock of 1029
1245		-	such entity or enterprise if required by that entity or enterprise to be 1030
1246		-	purchased in connection with the sale, pledge or assignment of 1031
1247		-	extensions of credit to that entity or enterprise and may hold and 1032
1248		-	dispose of such stock, provided that with respect to purchases of stock 1033
1249		-	of a credit union service organization, the Connecticut credit union 1034
1250		-	shall not exceed the limitations of section 36a-459a. A Connecticut 1035
1251		-	credit union may purchase one or more outstanding extensions of 1036
1252		-	credit from any other lending institution and any federally-recognized 1037
1253		-	Native American tribe, provided there exists a formal written 1038
1254		-	agreement with tribal government to permit the credit union to service 1039
1255		-	and collect on such extensions of credit; 1040
1256		-	(19) Subject to the provisions of section 36a-455b, sell a participating 1041
1257		-	interest in any or all of its outstanding extensions of credit to and 1042
1258		-	purchase a participating interest in any or all of the outstanding 1043
1259		-	extensions of credit of any financial institution or credit union service 1044
1260		-	organization pursuant to an appropriate written participation and 1045
1261		-	servicing agreement to be signed by all parties involved in such 1046
1262		-	transaction; 1047
1263		-	(20) With the approval of the commissioner, join the Federal Home 1048
1264		-	Loan Bank System and borrow funds as provided under federal law; 1049
1265		-	(21) Subject to the provisions of section 36a-455b, sell all or part of 1050
1266		-	its assets, other than extensions of credit, to other lending institutions, 1051
1267		-	purchase all or part of the assets, other than extensions of credit, of 1052
1268		-	other lending institutions, and assume all or part of the shares and the 1053
1269		-	liabilities of any other credit union or out-of-state credit union; 1054
1270		-	(22) With the prior written approval of the commissioner, engage in 1055
1271		-	closely related activities, unless the commissioner determines that any 1056 Substitute Bill No. 1138
	1222	+	LCO No. 7328 34 of 39
	1223	+
	1224	+	organization or third-party marketing organization, and any officer 1004
	1225	+	and employee thereof, shall be licensed as required by section 38a-769 1005
	1226	+	before engaging in any of the activities authorized by this subdivision. 1006
	1227	+	As used in this subdivision, "annuities" and "insurance" have the same 1007
	1228	+	meanings as set forth in section 38a-41, except that "insurance" does 1008
	1229	+	not include title insurance. The provisions of this subdivision do not 1009
	1230	+	authorize a Connecticut credit union or Connecticut credit union 1010
	1231	+	service organization to underwrite insurance or annuities; 1011
	1232	+	(7) Borrow money to an amount not exceeding fifty per cent of the 1012
	1233	+	total assets of the Connecticut credit union provided the credit union 1013
	1234	+	shall give prior notice to the commissioner in writing of its intention to 1014
	1235	+	borrow amounts in excess of thirty-five per cent of its total assets; 1015
	1236	+	(8) Act as fiscal agent for the federal government, this state or any 1016
	1237	+	agency or political subdivision thereof; 1017
	1238	+	(9) Provide loan processing, loan servicing, member check and 1018
	1239	+	money order cashing services, disbursement of share withdrawals and 1019
	1240	+	loan proceeds, money orders, internal audits, automated teller 1020
	1241	+	machine services, ACH and wire transfer services, prepaid debit cards, 1021
	1242	+	payroll cards, digital wallet services, coin and currency services, 1022
	1243	+	remote deposit capture services, electronic banking and other similar 1023
	1244	+	services to other Connecticut credit unions, federal credit unions, 1024
	1245	+	federally insured financial institutions and out-of-state credit unions; 1025
	1246	+	(10) Provide finder services to its members, including the offering of 1026
	1247	+	third party products and services through the sale of advertising space 1027
	1248	+	on its web site, account statements and receipts, and the sale of 1028
	1249	+	statistical or consumer financial information to outside vendors in 1029
	1250	+	accordance with sections 36a-40 to 36a-45, inclusive, in order to 1030
	1251	+	facilitate the sale of such products to the members of such Connecticut 1031
	1252	+	credit union; 1032
	1253	+	(11) With the prior approval of the commissioner, exercise fiduciary 1033
	1254	+	powers; 1034
	1255	+	Raised Bill No. 1138
1272	1256
1273	1257
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1277	1258
1278		-	such activity shall be conducted by a credit union service organization 1057
1279		-	of the Connecticut credit union, utilizing such organizational, 1058
1280		-	structural or other safeguards as the commissioner may require, in 1059
1281		-	order to protect the Connecticut credit union from exposure to loss. As 1060
1282		-	used in this subdivision, "closely related activities" means those 1061
1283		-	activities that are closely related, convenient and necessary to the 1062
1284		-	business of a Connecticut credit union, are reasonably related to the 1063
1285		-	operation of a Connecticut credit union or are financial in nature 1064
1286		-	including, but not limited to, business and professional services, data 1065
1287		-	processing, courier and messenger services, credit-related activities, 1066
1288		-	consumer services, services related to real estate, financial consulting, 1067
1289		-	tax planning and preparation, community development activities, or 1068
1290		-	any activities reasonably related to such activities; 1069
1291		-	(23) Engage in any activity that a federal credit union or out-of-state 1070
1292		-	credit union may be authorized to engage in under state or federal law, 1071
1293		-	provided the Connecticut credit union file with the commissioner prior 1072
1294		-	written notice of its intention to engage in such activity. Such notice 1073
1295		-	shall include a description of the activity, a description of the financial 1074
1296		-	impact of the activity on the Connecticut credit union, citation of the 1075
1297		-	legal authority to engage in the activity under state or federal law, a 1076
1298		-	description of any limitations or restrictions imposed on such activity 1077
1299		-	under state or federal law, and any other information that the 1078
1300		-	commissioner may require. The Connecticut credit union may engage 1079
1301		-	in any such activity unless the commissioner disapproves such activity 1080
1302		-	not later than thirty days after the notice is filed. The commissioner 1081
1303		-	may adopt regulations in accordance with chapter 54 to ensure that 1082
1304		-	any such activity is conducted in a safe and sound manner with 1083
1305		-	adequate consumer protections. The provisions of this subdivision do 1084
1306		-	not authorize a Connecticut credit union or a Connecticut credit union 1085
1307		-	service organization to sell title insurance; [.] 1086
1308		-	(24) (A) Partner with a community development corporation, as 1087
1309		-	described in section 1 of this act, and be designated as a community 1088
1310		-	development credit union in accordance with the provisions of section 1089 Substitute Bill No. 1138
	1259	+	LCO No. 7328 35 of 39
	1260	+
	1261	+	(12) Maintain and rent safe deposit boxes within suitably 1035
	1262	+	constructed vaults, provided the Connecticut credit union has 1036
	1263	+	adequate insurance coverage for losses related to such rental; 1037
	1264	+	(13) Provide certification services, including notary services, 1038
	1265	+	signature guaranties, certification of electronic signatures and share 1039
	1266	+	draft certifications; 1040
	1267	+	(14) Act as agent (A) in the collection of taxes for any qualified 1041
	1268	+	treasurer of any taxing district or qualified collector of taxes, or (B) for 1042
	1269	+	any electric distribution, gas, water or telephone company operating 1043
	1270	+	within this state in receiving moneys due such company for utility 1044
	1271	+	services furnished by it; 1045
	1272	+	(15) Issue and sell securities which (A) are guaranteed by the 1046
	1273	+	Federal National Mortgage Association or any other agency or 1047
	1274	+	instrumentality authorized by state or federal law to create a 1048
	1275	+	secondary market with respect to extensions of credit of the type 1049
	1276	+	originated by the Connecticut credit union, or (B) subject to the 1050
	1277	+	approval of the commissioner, relate to extensions of credit originated 1051
	1278	+	by the Connecticut credit union and are guaranteed or insured by a 1052
	1279	+	financial guaranty insurance company or comparable private entity; 1053
	1280	+	(16) Establish a charitable fund, either in the form of a charitable 1054
	1281	+	trust or a nonprofit corporation to assist in making charitable 1055
	1282	+	contributions, provided (A) the trust or nonprofit corporation is 1056
	1283	+	exempt from federal income taxation and may accept charitable 1057
	1284	+	contributions under Section 501 of the Internal Revenue Code of 1986, 1058
	1285	+	or any subsequent corresponding internal revenue code of the United 1059
	1286	+	States, as from time to time amended, (B) the trust or nonprofit 1060
	1287	+	corporation's operations are disclosed fully to the commissioner upon 1061
	1288	+	request, and (C) the trust department of the credit union or one or 1062
	1289	+	more directors or members of senior management of the credit union 1063
	1290	+	act as trustees or directors of the fund; 1064
	1291	+	(17) In the discretion of a majority of its governing board, make 1065
	1292	+	Raised Bill No. 1138
1311	1293
1312	1294
1313		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2019SB-01138-
1314		-	R01-SB.docx }
1315		-	36 of 36
1316	1295
1317		-	2 of this act, (B) if so designated, engage in any activity authorized for 1090
1318		-	a community development credit union under sections 1 and 2 of this 1091
1319		-	act, and (C) issue social impact bonds in accordance with subdivision 1092
1320		-	(5) of subsection (c) of section 2 of this act. 1093
	1296	+	LCO No. 7328 36 of 39
	1297	+
	1298	+	contributions or gifts to or for the use of any corporation, trust or 1066
	1299	+	community chest, fund or foundation created or organized under the 1067
	1300	+	laws of the United States or of this state and organized and operated 1068
	1301	+	exclusively for charitable, educational or public welfare purposes, or of 1069
	1302	+	any hospital which is located in this state and which is exempt from 1070
	1303	+	federal income taxes and to which contributions are deductible under 1071
	1304	+	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 1072
	1305	+	corresponding internal revenue code of the United States, as from time 1073
	1306	+	to time amended; 1074
	1307	+	(18) Subject to the provisions of section 36a-455b, sell, pledge or 1075
	1308	+	assign any or all of its outstanding extensions of credit to any other 1076
	1309	+	lending institution, credit union service organization or quasi-1077
	1310	+	governmental entity and any government-sponsored enterprise, and 1078
	1311	+	act as collecting, remitting and servicing agent in connection with any 1079
	1312	+	such extension of credit and charge for its acts as agent. Any such 1080
	1313	+	credit union may purchase the minimum amount of capital stock of 1081
	1314	+	such entity or enterprise if required by that entity or enterprise to be 1082
	1315	+	purchased in connection with the sale, pledge or assignment of 1083
	1316	+	extensions of credit to that entity or enterprise and may hold and 1084
	1317	+	dispose of such stock, provided that with respect to purchases of stock 1085
	1318	+	of a credit union service organization, the Connecticut credit union 1086
	1319	+	shall not exceed the limitations of section 36a-459a. A Connecticut 1087
	1320	+	credit union may purchase one or more outstanding extensions of 1088
	1321	+	credit from any other lending institution and any federally-recognized 1089
	1322	+	Native American tribe, provided there exists a formal written 1090
	1323	+	agreement with tribal government to permit the credit union to service 1091
	1324	+	and collect on such extensions of credit; 1092
	1325	+	(19) Subject to the provisions of section 36a-455b, sell a participating 1093
	1326	+	interest in any or all of its outstanding extensions of credit to and 1094
	1327	+	purchase a participating interest in any or all of the outstanding 1095
	1328	+	extensions of credit of any financial institution or credit union service 1096
	1329	+	organization pursuant to an appropriate written participation and 1097
	1330	+	servicing agreement to be signed by all parties involved in such 1098
	1331	+	Raised Bill No. 1138
	1332	+
	1333	+
	1334	+
	1335	+	LCO No. 7328 37 of 39
	1336	+
	1337	+	transaction; 1099
	1338	+	(20) With the approval of the commissioner, join the Federal Home 1100
	1339	+	Loan Bank System and borrow funds as provided under federal law; 1101
	1340	+	(21) Subject to the provisions of section 36a-455b, sell all or part of 1102
	1341	+	its assets, other than extensions of credit, to other lending institutions, 1103
	1342	+	purchase all or part of the assets, other than extensions of credit, of 1104
	1343	+	other lending institutions, and assume all or part of the shares and the 1105
	1344	+	liabilities of any other credit union or out-of-state credit union; 1106
	1345	+	(22) With the prior written approval of the commissioner, engage in 1107
	1346	+	closely related activities, unless the commissioner determines that any 1108
	1347	+	such activity shall be conducted by a credit union service organization 1109
	1348	+	of the Connecticut credit union, utilizing such organizational, 1110
	1349	+	structural or other safeguards as the commissioner may require, in 1111
	1350	+	order to protect the Connecticut credit union from exposure to loss. As 1112
	1351	+	used in this subdivision, "closely related activities" means those 1113
	1352	+	activities that are closely related, convenient and necessary to the 1114
	1353	+	business of a Connecticut credit union, are reasonably related to the 1115
	1354	+	operation of a Connecticut credit union or are financial in nature 1116
	1355	+	including, but not limited to, business and professional services, data 1117
	1356	+	processing, courier and messenger services, credit-related activities, 1118
	1357	+	consumer services, services related to real estate, financial consulting, 1119
	1358	+	tax planning and preparation, community development activities, or 1120
	1359	+	any activities reasonably related to such activities; 1121
	1360	+	(23) Engage in any activity that a federal credit union or out-of-state 1122
	1361	+	credit union may be authorized to engage in under state or federal law, 1123
	1362	+	provided the Connecticut credit union file with the commissioner prior 1124
	1363	+	written notice of its intention to engage in such activity. Such notice 1125
	1364	+	shall include a description of the activity, a description of the financial 1126
	1365	+	impact of the activity on the Connecticut credit union, citation of the 1127
	1366	+	legal authority to engage in the activity under state or federal law, a 1128
	1367	+	description of any limitations or restrictions imposed on such activity 1129
	1368	+	Raised Bill No. 1138
	1369	+
	1370	+
	1371	+
	1372	+	LCO No. 7328 38 of 39
	1373	+
	1374	+	under state or federal law, and any other information that the 1130
	1375	+	commissioner may require. The Connecticut credit union may engage 1131
	1376	+	in any such activity unless the commissioner disapproves such activity 1132
	1377	+	not later than thirty days after the notice is filed. The commissioner 1133
	1378	+	may adopt regulations in accordance with chapter 54 to ensure that 1134
	1379	+	any such activity is conducted in a safe and sound manner with 1135
	1380	+	adequate consumer protections. The provisions of this subdivision do 1136
	1381	+	not authorize a Connecticut credit union or a Connecticut credit union 1137
	1382	+	service organization to sell title insurance; 1138
	1383	+	(24) (A) Partner with a community development corporation, as 1139
	1384	+	described in section 1 of this act, and be designated as a community 1140
	1385	+	development credit union in accordance with the provisions of section 1141
	1386	+	2 of this act, (B) if so designated, engage in any activity authorized for 1142
	1387	+	a community development credit union under sections 1 and 2 of this 1143
	1388	+	act, and (C) issue social impact bonds in accordance with subdivision 1144
	1389	+	(5) of subsection (c) of section 2 of this act. 1145
1321	1390		This act shall take effect as follows and shall amend the following
1322	1391		sections:
1323	1392
1324	1393		Section 1 from passage New section
1325	1394		Sec. 2 from passage New section
1326	1395		Sec. 3 from passage New section
1327	1396		Sec. 4 from passage New section
1328	1397		Sec. 5 from passage New section
1329	1398		Sec. 6 from passage New section
1330	1399		Sec. 7 from passage New section
1331	1400		Sec. 8 from passage 12-408(1)
1332	1401		Sec. 9 from passage 36a-455a
1333	1402
1334		-	Statement of Legislative Commissioners:
1335		-	In Section 1, in Subsec. (a), a reference to section 12-408 of the general
1336		-	statutes was changed to a reference to the tax collected pursuant to
1337		-	Section 7(b) for accuracy, and in Subsec. (c)(1), Subparas. (C) and (D)
1338		-	were rewritten for accuracy; in Section 3(b)(1), ", but not later than
1339		-	August 31, 2019" was added for clarity; in Section 7(b)(1), ", and shall
1340		-	be administered in the same manner as the tax under said section" was
1341		-	added for clarity; and in Section 8(1)(M), the sentence was rewritten for
1342		-	accuracy.
	1403	+	Statement of Purpose:
	1404	+	To implement certain community restoration and revitalization efforts
	1405	+	through community development corporations, community
	1406	+	development credit unions and community impact zones, using tax
	1407	+	revenue from the sale of cannabis and cannabis products and deposits
	1408	+	in lieu of taxes.
1343	1409
1344		-	FIN Joint Favorable Subst.
	1410	+	Raised Bill No. 1138
	1411	+
	1412	+
	1413	+
	1414	+	LCO No. 7328 39 of 39
	1415	+
	1416	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline,
	1417	+	except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is
	1418	+	not underlined.]
1345	1419