Connecticut 2021 2021 Regular Session

Connecticut Senate Bill SB01104 Introduced / Bill

Filed 04/13/2021

                        
 
 
 
LCO No. 6689  	1 of 33 
 
General Assembly  Raised Bill No. 1104  
January Session, 2021 
LCO No. 6689 
 
 
Referred to Committee on FINANCE, REVENUE AND 
BONDING  
 
 
Introduced by:  
(FIN)  
 
 
 
 
AN ACT CONCERNING CO MMUNITY RESTORATION FUNDS. 
Be it enacted by the Senate and House of Representatives in General 
Assembly convened: 
 
Section 1. (NEW) (Effective from passage) (a) There are established 1 
community development corporations, which shall use the revenue 2 
from the taxes imposed under subsection (b) of section 6 of this act and 3 
the portion of the tax received and retained by the state from sales 4 
subject to the tax under subsection (b) of section 7 of this act, for the 5 
community restoration and revitalization purposes set forth in this 6 
section and section 2 of this act. Such moneys shall be disbursed by and 7 
used in coordination with the community development corporation 8 
oversight council established under section 3 of this act. 9 
(b) (1) Any entity that is exempt from tax pursuant to Section 501(c) 10 
of the Internal Revenue Code of 1986, or any subsequent corresponding 11 
internal revenue code of the United States, as amended from time to 12 
time, and is located in a distressed municipality, as defined in section 13 
32-9p of the general statutes, at the time such entity submits an 14 
application for designation, may apply to the council to be designated 15  Raised Bill No.  1104 
 
 
 
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as a community development corporation. 16 
(2) To be eligible to be designated as a community development 17 
corporation, such entity shall: 18 
(A) (i) Have demonstrated effectiveness in, or have been formed for 19 
the purpose of, building, attracting and retaining neighborhood wealth, 20 
and (ii) provide financial, educational or related services to support 21 
initiatives that concentrate investments in human capital and 22 
infrastructure in a specific neighborhood or neighborhoods, with 23 
measurable community revitalization achievements; 24 
(B) Agree to focus all its efforts in the distressed municipality in 25 
which it is located; 26 
(C) Agree to establish or relocate its primary office in a community 27 
impact zone within the municipality after such zones are designated 28 
pursuant to section 3 of this act; and 29 
(D) Agree to establish or relocate any auxiliary locations to within the 30 
boundaries of the municipality in which the corporation is located. 31 
(c) (1) Each community development corporation shall provide 32 
programs, services and assistance or issue grants to support community 33 
reinvestment strategies in the community impact zone in which such 34 
corporation is located, including, but not limited to, the following, in 35 
order of priority: 36 
(A) Encouraging early childhood initiatives through the provision, 37 
directly or in collaboration with other entities, of free or low-cost early 38 
childhood education services to families that reside within the 39 
community impact zone, without regard to family income level. Such 40 
services shall include kindergarten preparedness and kindergarten 41 
readiness assessments. The corporation may expand such services 42 
beyond the community impact zone but within the municipality to areas 43 
with poverty levels above the municipal average; 44 
(B) Increasing achievement at public elementary and middle schools 45  Raised Bill No.  1104 
 
 
 
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located in the community impact zone. The corporation shall coordinate 46 
with officials of such schools to submit grant applications to the 47 
community development corporation oversight council to supplement 48 
per-student funding for such schools to match or approach the highest 49 
levels of per-student funding at any elementary or middle school in the 50 
state. Schools that receive such grants shall (i) set goals to achieve scores 51 
in the top percentiles on the state-wide mastery examination under 52 
section 10-14n of the general statutes. The council shall set specific target 53 
goals for each school that receives a grant pursuant to this 54 
subparagraph, and (ii) guarantee that a student residing in the 55 
community impact zone will be able to attend that specific school; 56 
(C) Rebuilding community assets through: 57 
(i) The construction, renovation or repair of neighborhood structures 58 
or assets of economic or other community significance, including, but 59 
not limited to, playgrounds, sidewalks, parks, community centers, 60 
senior centers, public libraries, urban gardens and green spaces. Only 61 
projects for structures or assets that are owned by the federal, state or 62 
municipal government, the community development corporation 63 
located in the community impact zone where such structure or asset is 64 
located, the partnered community development credit union, as 65 
described in section 2 of this act, or a resident of the municipality in 66 
which such structure or asset is located shall be eligible to receive 67 
funding under this subparagraph. The corporation shall seek to train 68 
residents of the community impact zone to perform some of the work 69 
such projects require, directly or indirectly through partnerships with 70 
existing technical education and apprenticeship programs and with 71 
other entities; and 72 
(ii) The retention, sale or rental of such structures or assets after 73 
completion, provided any sale shall be to a resident of the community 74 
impact zone only. The partnered community development credit union 75 
may develop a cooperative model for owning and renting such 76 
structures or assets; 77  Raised Bill No.  1104 
 
 
 
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(D) Increasing owner-occupancy of residential buildings through: 78 
(i) Tracking and undertaking efforts to increase the percentage of 79 
owner-occupied residential buildings in the community impact zone. 80 
The corporation shall set five-year target percentages and shall 81 
periodically evaluate and revise such target amounts; 82 
(ii) The restoration and repair of multifamily rental buildings located 83 
in the community impact zone to convert such buildings into owner-84 
occupied residential buildings or multifamily cooperative buildings 85 
with at least one unit to be a rental unit. Only projects for multifamily 86 
rental buildings owned by the community development corporation 87 
located in the community impact zone, the partnered community 88 
development credit union or a resident of the municipality in which 89 
such building is located shall be eligible to receive funding under this 90 
subparagraph. A multifamily rental building that is not owned by such 91 
corporation, credit union or resident may be considered for funding 92 
under this subparagraph, provided the owner of such building agrees, 93 
in writing, to terms set forth by the corporation that further the purposes 94 
of this section. The corporation may promote participation in existing 95 
state and housing programs to encourage owner occupancy; and 96 
(iii) The retention, sale or rental of such buildings after completion, 97 
provided any sale shall be to a resident of the community impact zone 98 
only. The corporation or the partnered community development credit 99 
union may develop a cooperative model for owning and renting such 100 
buildings; 101 
(E) Supporting pathways to home ownership through the offering of 102 
home buyer education and financial literacy programs in partnership 103 
with existing programs. All such partnerships shall be joint efforts 104 
between the community development corporation and its partnered 105 
community development credit union and each such credit union may 106 
develop and offer subsidized or incentivized financial products for 107 
individuals who participate in such programs; 108 
(F) Creating pipelines to employment for residents of a community 109  Raised Bill No.  1104 
 
 
 
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impact zone through: 110 
(i) The implementation of or participation in community work-based 111 
training programs, in consultation or coordination with other 112 
organizations, including, but not limited to, the Workforce Investment 113 
Boards. Such programs shall provi de preapprenticeship or 114 
apprenticeship opportunities by providing instruction or training to 115 
increase literacy, mathematics and other technical, prevocational or 116 
vocational skills and connecting workforce, economic development and 117 
education systems with businesses and other stakeholders in the 118 
community impact zone. All such efforts undertaken by a community 119 
development corporation shall focus on the residents of the community 120 
impact zone in which such corporation is located and on businesses 121 
offering or carrying out training programs, in order of priority, (I) 122 
within the community impact zone, (II) within the municipality in 123 
which the community impact zone is located, or (III) without the 124 
municipality; and 125 
(ii) The placement of residents of the community impact zone with 126 
businesses offering employment or on-the-job training that are, in order 127 
of priority, (I) within the community impact zone, (II) within the 128 
municipality in which the community impact zone is located, or (III) 129 
without the municipality only after the opportunities under subclauses 130 
(I) and (II) of this clause have been exhausted; 131 
(G) Expanding access to programs at existing community centers or 132 
senior centers that serve all residents of the community impact zone, 133 
regardless of age, or converting such existing centers to centers that 134 
serve all residents of the community impact zone, regardless of age; and 135 
(H) Providing municipal residents with low-cost transportation 136 
options by developing or supporting transportation alternatives within 137 
and between municipalities for travel to and from employment, home, 138 
school, retail stores and entertainment venues. 139 
(2) If the corporation has insufficient funds to execute to a high level 140 
of quality all of the strategies set forth in subdivision (1) of this 141  Raised Bill No.  1104 
 
 
 
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subsection, the corporation shall pursue each strategy in the order of 142 
priority listed in said subdivision, with an emphasis on achieving a high 143 
level of quality in the execution and implementation of such strategy 144 
before undertaking the next strategy listed. 145 
(d) A community development corporation may: 146 
(1) Acquire real property described in subsection (c) of this section in 147 
partnership with or in coordination with its partnered community 148 
development credit union; 149 
(2) Operate as or establish a subsidiary that operates as a contractor 150 
or subcontractor, provided such corporation or subsidiary complies 151 
with all applicable licensing and registration requirements under the 152 
general statutes; and 153 
(3) Partner or contract with contractors or subcontractors to carry out 154 
projects and related work for the purposes set forth in subsection (c) of 155 
this section, provided the corporation shall give primary priority to a 156 
contractor or subcontractor located in the community impact zone in 157 
which the corporation is located and secondary priority to a contractor 158 
or subcontractor located in the municipality in which the corporation is 159 
located. 160 
(e) Not later than six months after being designated as a community 161 
development corporation, such corporation shall (1) identify a 162 
Connecticut credit union located within the municipality in which such 163 
corporation is located that will apply to the community development 164 
corporation oversight council for designation as a community 165 
development credit union pursuant to section 2 of this act, or (2) issue a 166 
request for proposal for the organization of a new Connecticut credit 167 
union to partner with, or for an existing Connecticut credit union to 168 
partner with, such corporation. 169 
(f) Notwithstanding the provisions of chapter 846 of the general 170 
statutes or section 12-157 of the general statutes, a community 171 
development corporation shall be offered the right of first refusal in the 172  Raised Bill No.  1104 
 
 
 
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sale of any real property that has been foreclosed or is being sold at 173 
public auction and is located in the community impact zone in which 174 
such corporation is located, provided such corporation has timely 175 
notified the mortgagee or the town tax collector, as applicable, of such 176 
corporation's interest in acquiring such property. 177 
(g) Each community development corporation shall submit a 178 
financial report to the community development corporation oversight 179 
council, on such frequency as the council shall require but at least 180 
annually, and include such information as the council requires. 181 
(h) (1) A community development corporation may request that its 182 
designation be removed. The community development corporation 183 
oversight council may grant such request, provided the council 184 
designates, from prior submitted applications or through a new request 185 
for application submissions, another entity to replace such corporation. 186 
(2) The council may remove the designation of any community 187 
development corporation that the council determines is unable to or is 188 
deficient in carrying out the purposes of this section, provided the 189 
corporation has been afforded an opportunity to address and improve 190 
any deficiencies noted by the council. 191 
Sec. 2. (NEW) (Effective from passage) (a) There are established 192 
community development credit unions, which shall partner with 193 
community development corporations, established under section 1 of 194 
this act, to further the community restoration and revitalization 195 
purposes set forth in this section and section 1 of this act. 196 
(b) (1) Any Connecticut credit union organized under chapter 667 of 197 
the general statutes and in compliance with the provisions of said 198 
chapter or any Connecticut credit union service organization, as defined 199 
in section 36a-2 of the general statutes, may apply to the community 200 
development corporation oversight council established under section 3 201 
of this act to be designated as a community development credit union. 202 
(2) To be designated as a community development credit union, a 203  Raised Bill No.  1104 
 
 
 
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Connecticut credit union or Connecticut credit union service 204 
organization shall: 205 
(A) Serve low-income and moderate-income individuals and 206 
communities that have limited access to affordable financial services 207 
and products, with priority given to credit unions that specialize in (i) 208 
providing home mortgages or small business loans to members with 209 
imperfect, limited or no credit history, (ii) providing financial education 210 
and counseling to its members, and (iii) offering products, services and 211 
support at a low or reasonable cost to its members; and 212 
(B) Agree to partner with or be partnered with at least one 213 
community development corporation and focus its activities and efforts 214 
to support such corporation's purposes set forth in section 1 of this act. 215 
(c) Each community development credit union shall: 216 
(1) Submit its governance structure to the community development 217 
corporation oversight council for review and approve the addition of 218 
representatives of its partnered community development corporation to 219 
its governing board, executive committee or supervisory committee or 220 
similar board or committee, in such numbers and as agreed to by such 221 
credit union and corporation; 222 
(2) If applicable and necessary, expand its field of membership in 223 
accordance with section 36a-438a of the general statutes, to allow all 224 
residents of all community impact zones within the municipality in 225 
which its partnered community development corporation is located, to 226 
be members of such credit union; 227 
(3) Offer or agree to offer free or low-cost basic checking and savings 228 
account services to all residents of the community impact zone in which 229 
its partnered community development corporation is located; 230 
(4) Agree to establish or relocate a location in the community impact 231 
zone in which its partnered community development corporation is 232 
located after such zones are designated pursuant to section 3 of this act. 233  Raised Bill No.  1104 
 
 
 
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Such credit union shall not be precluded from establishing or having 234 
locations elsewhere in the state or establishing or having multiple 235 
locations within the municipality in which the community impact zone 236 
is located; and 237 
(5) Develop and issue, in consultation with its partnered community 238 
development corporation, social impact bonds to support or 239 
supplement the efforts of such corporation. Such bonds shall be 240 
designed to maximize tax benefits to investors, where the community 241 
impact zone in which such corporation is located aligns with federal 242 
qualified opportunity zones. 243 
(d) A community development credit union may: 244 
(1) Develop low-cost or subsidized financial products and services to 245 
support the community development goals of its partnered community 246 
development corporation and apply to the community development 247 
corporation oversight council for funding for such purpose; and 248 
(2) Collaborate with its partnered community development 249 
corporation to help finance or facilitate investments in real property or 250 
community structures and assets pursuant to section 1 of this act. 251 
(e) Each community development credit union shall submit a 252 
financial report to the community development corporation oversight 253 
council, on such frequency as the council shall require but at least 254 
annually, and include such information as the council requires. 255 
(f) (1) A community development credit union may request that its 256 
designation be removed and that it no longer be partnered with its 257 
community development corporation. The community development 258 
corporation oversight council may grant such request, provided such 259 
corporation identifies another Connecticut credit union or Connecticut 260 
credit union service organization to replace such credit union or issues 261 
a request for proposal for the organization of a new Connecticut credit 262 
union or Connecticut credit union service organization with which to 263 
partner. 264  Raised Bill No.  1104 
 
 
 
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(2) The council may remove the designation of any community 265 
development credit union that the council determines is unable to or is 266 
deficient in carrying out the purposes of this section, provided the credit 267 
union has been afforded an opportunity to address and improve any 268 
deficiencies noted by the council. 269 
Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 270 
"municipality" means any town, city or borough, consolidated town and 271 
city or consolidated town and borough and "distressed municipality" 272 
has the same meaning as provided in section 32-9p of the general 273 
statutes. 274 
(b) (1) There is established a community development corporation 275 
oversight council, which shall be part of the Legislative Department. 276 
The council shall consist of the following members: (A) The Treasurer; 277 
(B) the Commissioner of Economic and Community Development; (C) 278 
the executive director of the Commission on Equity and Opportunity, 279 
established pursuant to section 2-127 of the general statutes; and (D) 280 
four members appointed by the Governor. In making the appointments 281 
under subparagraph (D) of this subdivision, the Governor shall seek to 282 
appoint individuals who have broad community knowledge and 283 
experience with communities within the eligible census tracts selected 284 
by the Secretary of the Office of Policy and Management pursuant to 285 
subsection (f) of this section and are reflective of the ethnic, gender and 286 
economic diversity of such communities. All appointments to the 287 
council shall be made on or after August 1, 2021, but not later than 288 
August 31, 2021. 289 
(2) The Treasurer and the Commissioner of Economic and 290 
Community Development shall serve as cochairpersons of the council 291 
and shall jointly schedule the first meeting of the council, which shall be 292 
held not later than September 1, 2021. On and after January 1, 2022, the 293 
council shall meet not fewer than six times each year. A majority of the 294 
council shall constitute a quorum for the transaction of any business. 295 
(3) Any vacancy shall be filled by the appointing authority. Any 296  Raised Bill No.  1104 
 
 
 
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vacancy occurring other than by expiration of term shall be filled for the 297 
balance of the unexpired term. 298 
(4) The members of the council shall serve without compensation, but 299 
shall, within the limits of available funds, be reimbursed for expenses 300 
necessarily incurred in the performance of their duties. 301 
(5) The administrative staff of the joint standing committee of the 302 
General Assembly having cognizance of matters relating to economic 303 
development shall serve as administrative staff of the council. 304 
(c) The council shall: 305 
(1) Establish criteria for designation as a community development 306 
corporation, community development credit union and community 307 
impact zone and designate such corporations, credit unions and zones 308 
in accordance with the provisions of this section and sections 1 and 2 of 309 
this act; 310 
(2) Establish an annual budget in accordance with the provisions of 311 
this section; 312 
(3) Oversee the investments of, deposits in and disbursements from 313 
the Community Development Corporation Trust Fund established 314 
under section 4 of this act; 315 
(4) Approve the programs, services and activities of and efforts 316 
undertaken by community development corporations and community 317 
development credit unions to further the purposes of this section and 318 
sections 1 and 2 of this act; 319 
(5) Oversee, support and coordinate the programs, services and 320 
activities of and efforts undertaken by community development 321 
corporations and community development credit unions under sections 322 
1 and 2 of this act, within and across municipalities and with other 323 
relevant state agencies, entities and initiatives; 324 
(6) Advise community development corporations, community 325  Raised Bill No.  1104 
 
 
 
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development credit unions, state agencies and other entities with 326 
respect to the core purposes of community development corporations 327 
and community development credit unions; 328 
(7) Review the disbursement of funds to, and contracts entered into 329 
by, community development corporations and community 330 
development credit unions, to evaluate the impact and effectiveness of 331 
such disbursements and ensure that decisions made by such 332 
corporations and credit unions regarding services or grants provided or 333 
other financial instruments issued are based solely on the purposes set 334 
forth in sections 1 and 2 of this act; 335 
(8) Review the reports submitted to the council by community 336 
development corporations and community development credit unions; 337 
and 338 
(9) Do all things necessary to carry out its duties and responsibilities 339 
under sections 1 to 4, inclusive, of this act. 340 
(d) The council shall designate community development credit 341 
unions from among applicants that fulfill the requirements set forth in 342 
subsection (b) of section 2 of this act. The council may designate only 343 
one community development credit union for each municipality. 344 
(e) The council shall designate community development corporations 345 
in accordance with the provisions of this subsection. 346 
(1) Not later than October 1, 2021, the council shall release its criteria 347 
for prospective applicants seeking designation as a community 348 
development corporation. In addition to the requirements set forth in 349 
section 1 of this act, such criteria shall take into consideration the goals, 350 
purposes and requirements set forth in said section and shall include, 351 
but not be limited to, (A) whether the applicant has broad community 352 
representation in its leadership and governance, with an emphasis on 353 
ethnic and economic diversity reflective of the municipality in which the 354 
applicant is located, and (B) the professional competence and relevant 355 
experience of the applicant's management and staff. Each applicant shall 356  Raised Bill No.  1104 
 
 
 
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include (i) a letter of support from the chief elected official of the 357 
municipality in which the applicant is located, and (ii) a statement that 358 
the applicant agrees to locate its office in a community impact zone once 359 
such zones are designated. The council shall accept applications on or 360 
after October 1, 2021, until and including January 31, 2022. 361 
(2) Not later than March 1, 2022, the council shall announce its 362 
selections for designated community development corporations. The 363 
council may designate only one community development corporation 364 
for each municipality. 365 
(f) The Secretary of the Office of Policy and Management shall select 366 
eligible census tracts and the council shall designate community impact 367 
zones, in accordance with the provisions of this subsection. 368 
(1) The secretary shall select census tracts within distressed 369 
municipalities that will be eligible to have a community impact zone or 370 
zones designated within such tract. The secretary shall consider, but 371 
need not be limited to, the following metrics for each census tract: (A) 372 
The educational level attained by the population, specifically the 373 
percentage of the population attaining an associate degree or a 374 
bachelor's degree; (B) the most recent third grade scores on the state-375 
wide mastery examination under section 10-14n of the general statutes 376 
for reading; (C) the most recent third grade scores on the state-wide 377 
mastery examination under section 10-14n of the general statutes for 378 
mathematics; (D) the unemployment rate; (E) the state of the local 379 
economy, employment availability and access and diversity of jobs; (F) 380 
the percentage of the population receiving public assistance; (G) the 381 
percentage of the population below the federal poverty level; (H) the 382 
rate of home ownership; (I) the percentage of vacant housing; and (J) 383 
crime rates. 384 
(2) Not later than August 1, 2021, the secretary shall release the census 385 
tracts that are eligible for consideration, based on a demonstration of the 386 
greatest socio-economic need as indicated by subparagraphs (A) to (J), 387 
inclusive, of subdivision (1) of this subsection. The secretary shall also 388  Raised Bill No.  1104 
 
 
 
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release the criteria for determining an area within such tract to be 389 
designated as a community impact zone. Such criteria shall take into 390 
consideration the goals, purposes and requirements set forth in section 391 
1 of this act and may give weight to one or more of the following: (A) 392 
The existence of a public elementary school within the area; (B) the 393 
existence of an early childhood center within the area; (C) the existence 394 
of a community center serving children or seniors, or both, within the 395 
area; (D) the existence of a local community organization comprised of 396 
residents and leaders within the area, which organization's role is 397 
complementary to the goals, purposes and requirements set forth in 398 
section 1 of this act; (E) the proximity of the area to existing or planned 399 
public transportation; and (F) existing access to an asset-based housing 400 
organization that focuses on home ownership and financial literacy. 401 
(3) Not later than June 1, 2022, each community development 402 
corporation shall submit a proposal to the council for not more than two 403 
geographically distinct areas within an eligible census tract in which the 404 
corporation is located to be designated as a community impact zone. 405 
(4) Not later than August 1, 2022, the council shall announce its 406 
selections for designated community impact zones. The council may 407 
designate one community impact zone for a municipality with a 408 
population of one hundred thousand or less and two community impact 409 
zones for a municipality with a population of greater than one hundred 410 
thousand. If the council rejects a proposal or does not designate an area 411 
that a community development corporation proposed, the council may 412 
allow such corporation to resubmit a proposal if a community impact 413 
zone has not been otherwise designated. 414 
(5) Not later than February 1, 2023, or as soon as practicable following 415 
the designations of community impact zones, each community 416 
development corporation shall establish an office or relocate its office 417 
within such zone. 418 
(g) The council shall establish an annual budget that sets forth the 419 
amounts in the Community Development Corporation Trust Fund to be 420  Raised Bill No.  1104 
 
 
 
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invested, the amounts in the fund to be disbursed for programs, 421 
services, activities and expenses for the purposes of sections 1 and 2 of 422 
this act and the amount to be set aside for the purposes of subsections 423 
(h) and (i) of this section. The council, in consultation with the Treasurer 424 
and the chief executive officer of the Connecticut Green Bank 425 
established under section 16-245n of the general statutes, shall adopt an 426 
investment plan with the goals of yielding investment returns over the 427 
long-term to support the programs, services, activities and efforts for the 428 
purposes of sections 1 and 2 of this act and supporting a substantial 429 
portion of the fund's annual expenditures from the investment returns. 430 
The initial investment plan shall set forth an investment strategy for not 431 
less than twenty years and the council may revise such plan from time 432 
to time by affirmative vote. The council shall annually review such plan 433 
and the investment returns generated and shall adjust the amount of 434 
moneys to be invested and disbursed each year accordingly. 435 
(h) (1) The council shall set aside an amount in its annual budget 436 
equal to the amount appropriated in the state budget act for the 437 
intensive reading instruction program established under section 10-14u 438 
of the general statutes, provided such amount set aside shall not exceed 439 
three million dollars each year. The amount to be set aside under this 440 
subsection may be reduced if there are insufficient moneys in the fund 441 
to provide for the purposes set forth in sections 1 and 2 of this act and 442 
for the entire amount of the set-aside specified under this subdivision. 443 
(2) The council shall make such moneys available for the 444 
implementation or support of said reading instruction program or any 445 
state-wide early literacy initiative developed and implemented by the 446 
Department of Education, regardless of whether such program or 447 
initiative is related to a community impact zone or is eligible for other 448 
community development corporation or community development 449 
credit union programs or other grants or funding. The moneys made 450 
available pursuant to this subdivision shall supplement existing or other 451 
available grants or funding. The council shall establish forms and 452 
criteria to apply for such moneys and shall give primary priority to 453 
applications from schools located in a community impact zone, 454  Raised Bill No.  1104 
 
 
 
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provided all such schools submit an application. Any moneys awarded 455 
to such schools shall be distributed on a zone-wide basis to be used 456 
solely for the purpose of making said reading instruction program 457 
available to all students reading below proficiency level who reside or 458 
attend school within the community impact zone. The council shall give 459 
secondary priority to applications from schools located in a distressed 460 
municipality on the basis of the level of student reading achievement, as 461 
determined by the Commissioner of Education. 462 
(i) The council shall set aside an amount in its annual budget, to be 463 
determined by the council, to provide financial assistance to health care 464 
providers and facilities that provide mental health or substance use 465 
disorder treatment services in any municipality. The council shall 466 
establish eligibility requirements for such financial assistance and 467 
publicize the availability of such financial assistance to the relevant 468 
community. 469 
(j) The council shall develop a proposal to allow social impact bonds 470 
to be issued by the state to support public schools located in community 471 
impact zones. Not later than February 1, 2022, the Secretary of the Office 472 
of Policy and Management shall submit a report, in accordance with the 473 
provisions of section 11-4a of the general statutes, to the General 474 
Assembly, setting forth the proposal and including recommendations 475 
on ways to leverage the federal qualified opportunity zones program to 476 
support such public schools. 477 
(k) (1) The council may cause to have conducted an external, 478 
independent audit of any community development corporation or 479 
community development credit union. 480 
(2) The council may request the Auditors of Public Accounts to 481 
perform, and said auditors shall perform, audits and other related 482 
evaluations to facilitate the council's responsibilities established under 483 
sections 1 to 4, inclusive, of this act. 484 
(l) Not later than February 1, 2024, and annually thereafter, the 485 
council shall submit a report to the Governor and to the General 486  Raised Bill No.  1104 
 
 
 
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Assembly, in accordance with the provisions of section 11-4a of the 487 
general statutes. Such report shall include, but not be limited to, a list of 488 
the community development corporations, community development 489 
credit unions and community impact zones designated to date, a 490 
summary of the programs, services, activities and efforts undertaken by 491 
such corporations and credit unions pursuant to sections 1 and 2 of this 492 
act and the disbursements made from the Community Development 493 
Corporation Trust Fund to support such programs, services, activities 494 
and efforts. 495 
Sec. 4. (NEW) (Effective from passage) (a) There is established a fund to 496 
be known as the "Community Development Corporation Trust Fund". 497 
The fund shall contain any moneys required by law to be deposited in 498 
the fund and shall be held in trust separate and apart from all other 499 
moneys, funds and accounts. Investment earnings credited to the assets 500 
of the fund shall become part of the assets of said fund. Any balance 501 
remaining in the fund at the end of any fiscal year shall be carried 502 
forward in the fund for the fiscal year next succeeding. Moneys in the 503 
fund shall be expended by the community development corporation 504 
oversight council established pursuant to section 3 of this act to be used 505 
for the purposes set forth in sections 1 and 2 of this act. 506 
(b) The Treasurer shall invest the amounts on deposit in the fund in 507 
a manner reasonable and appropriate to achieve the objectives of the 508 
fund, exercising the discretion and care of a prudent person in similar 509 
circumstances with similar objectives. The Treasurer shall give due 510 
consideration to rate of return, risk, term or maturity, diversification of 511 
the total portfolio within the fund, liquidity, the projected 512 
disbursements and expenditures, and the expected payments, deposits, 513 
contributions and gifts to be received. The Treasurer shall not require 514 
the fund to invest directly in obligations of the state or any political 515 
subdivision of the state or in any investment or other fund administered 516 
by the Treasurer. The assets of the fund shall be continuously invested 517 
and reinvested in a manner consistent with the objectives of the fund 518 
until disbursed for the purposes set forth in sections 1 and 2 of this act. 519  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	18 of 33 
 
(c) On or before December thirty-first, annually, the Treasurer shall 520 
submit a financial report, in accordance with the provisions of section 521 
11-4a of the general statutes, to the community development 522 
corporation oversight council and the joint standing committee of the 523 
General Assembly having cognizance of matters relating to finance, 524 
revenue and bonding, setting forth the receipts, disbursements, assets, 525 
investments, liabilities and administrative costs of the fund for the prior 526 
fiscal year. 527 
Sec. 5. (NEW) (Effective from passage) Any entity that is exempt from 528 
paying property tax pursuant to Section 501(c) of the Internal Revenue 529 
Code of 1986, or any subsequent corresponding internal revenue code 530 
of the United States, as amended from time to time, any municipality 531 
and the state may make a deposit with a community development credit 532 
union, to be invested by such credit union to further the community 533 
restoration and revitalization purposes set forth in sections 1 to 4, 534 
inclusive, of this act. Each community development credit union that 535 
receives a deposit pursuant to this section shall provide a rate of return 536 
on such deposit that is, at a minimum, not less than the London 537 
Interbank Offered Rate. 538 
Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 539 
(1) "Cannabis" means "marijuana", as defined in section 21a-240 of the 540 
general statutes. "Cannabis" does not include marijuana cultivated or 541 
sold for palliative use pursuant to chapter 420f of the general statutes; 542 
(2) "Cannabis concentrate" means any form of concentration, 543 
including, but not limited to, extracts, oils, tinctures, shatter and waxes, 544 
that is extracted from cannabis or a cannabis product; 545 
(3) "Cannabis product" means a cannabis concentrate or a product 546 
that contains cannabis, which may be combined with other ingredients, 547 
and is intended for use or consumption. "Cannabis product" does not 548 
include the raw cannabis plant; 549 
(4) "Cannabis retailer" means a person licensed by the Cannabis 550  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	19 of 33 
 
Control Commission to sell cannabis and cannabis products to 551 
consumers;  552 
(5) "Consumer" means an individual who is twenty-one years of age 553 
or older; 554 
(6) "Cannabis Control Commission" means the commission 555 
established under section 21 of substitute senate bill 888 of the current 556 
session; and 557 
(7) "Municipality" means any town, city or borough, consolidated 558 
town and city or consolidated town and borough. 559 
(b) (1) On and after the date the Cannabis Control Commission first 560 
issues a license to a cannabis retailer, there is imposed a local sales tax 561 
at the rate of three per cent on the sale of all cannabis and cannabis 562 
products. Such tax shall be in addition to the tax applicable to such sales 563 
under section 12-408 of the general statutes, as amended by this act, and 564 
shall be administered in the same manner as the tax under said section. 565 
(2) Each cannabis retailer making such sales shall file with the 566 
commissioner, on or before the last day of each calendar quarter, a 567 
return for the calendar quarter immediately preceding. Such returns 568 
shall be in such form and contain such information as the commissioner 569 
prescribes and shall indicate the municipality in which such sales 570 
occurred, and shall be accompanied by a payment of the total amount 571 
of tax shown to be due thereon. 572 
(c) The commissioner shall deposit any local sales tax collected 573 
pursuant to subsection (b) of this section into the municipal cannabis 574 
revenue account established under subsection (d) of this section. 575 
(d) There is established an account to be known as the "municipal 576 
cannabis revenue account" which shall be a separate account within the 577 
General Fund. The account shall contain any moneys required by law to 578 
be deposited in the account. Moneys in the account shall be expended 579 
by the Commissioner of Revenue Services for the purpose of providing 580  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	20 of 33 
 
moneys in accordance with this section to municipalities in which 581 
cannabis retailers are selling cannabis and cannabis products to 582 
consumers. 583 
(e) (1) The commissioner shall maintain (A) an accounting of all sums 584 
deposited in the account, aggregated by municipality, (B) a listing of 585 
sums remitted by each cannabis retailer, and (C) such other information 586 
as the commissioner deems necessary for the purposes of this section. 587 
(2) Commencing in the second calendar quarter following the initial 588 
deposit into the account, the commissioner shall distribute on a 589 
quarterly basis a sum, calculated on a point-of-sale basis, to each 590 
municipality in which a cannabis retailer is located and for which a 591 
point-of-sale can be determined. Any moneys remaining in the account 592 
at the close of the fiscal year for which no point-of-sale can be 593 
determined shall be transferred to the Community Development 594 
Corporation Trust Fund established under section 4 of this act. 595 
(3) The commissioner shall make available to each municipality in 596 
which a cannabis retailer is located any information concerning such 597 
municipality that is maintained under subdivision (1) of this subsection. 598 
(f) If any person fails to pay the amount of tax reported due on its 599 
report within the time specified under this section, there shall be 600 
imposed a penalty equal to ten per cent of such amount due and unpaid, 601 
or fifty dollars, whichever is greater. Such amount shall bear interest at 602 
the rate of one per cent per month or fraction thereof, from the due date 603 
of such tax until the date of payment. Subject to the provisions of section 604 
12-3a of the general statutes, the commissioner may waive all or part of 605 
the penalties provided under this section when it is proven to the 606 
commissioner's satisfaction that the failure to pay any tax was due to 607 
reasonable cause and was not intentional or due to neglect. 608 
(g) Each person, other than a cannabis retailer, who is required, on 609 
behalf of such retailer, to collect, truthfully account for and pay over a 610 
tax imposed on such retailer under this section and who wilfully fails to 611 
collect, truthfully account for and pay over such tax or who wilfully 612  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	21 of 33 
 
attempts in any manner to evade or defeat the tax or the payment 613 
thereof, shall, in addition to other penalties provided by law, be liable 614 
for a penalty equal to the total amount of the tax evaded, or not 615 
collected, or not accounted for and paid over, including any penalty or 616 
interest attributable to such wilful failure to collect or truthfully account 617 
for and pay over such tax or such wilful attempt to evade or defeat such 618 
tax, provided such penalty shall only be imposed against such person in 619 
the event that such tax, penalty or interest cannot otherwise be collected 620 
from such retailer. The amount of such penalty with respect to which a 621 
person may be personally liable under this section shall be collected in 622 
accordance with the provisions of section 12-555a of the general statutes 623 
and any amount so collected shall be allowed as a credit against the 624 
amount of such tax, penalty or interest due and owing from the retailer. 625 
The dissolution of the retailer shall not discharge any person in relation 626 
to any personal liability under this section for wilful failure to collect or 627 
truthfully account for and pay over such tax or for a wilful attempt to 628 
evade or defeat such tax prior to dissolution, except as otherwise 629 
provided in this section. For purposes of this section, "person" includes 630 
any individual, corporation, limited liability company or partnership 631 
and any officer or employee of any corporation, including a dissolved 632 
corporation, and a member or employee of any partnership or limited 633 
liability company who, as such officer, employee or member, is under a 634 
duty to file a tax return under this section on behalf of a cannabis retailer 635 
or to collect or truthfully account for and pay over a tax imposed under 636 
this section on behalf of such retailer. 637 
(h) No tax credit or credits shall be allowable against the tax imposed 638 
under this section. 639 
(i) The provisions of sections 12-551 to 12-554, inclusive, and section 640 
12-555a of the general statutes shall apply to the provisions of this 641 
section in the same manner and with the same force and effect as if the 642 
language of said sections had been incorporated in full into this section 643 
and had expressly referred to the tax under this section, except to the 644 
extent that any provision is inconsistent with a provision in this section. 645  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	22 of 33 
 
(j) The commissioner may adopt regulations, in accordance with the 646 
provisions of chapter 54 of the general statutes, to implement the 647 
provisions of this section. 648 
(k) At the close of each fiscal year in which the tax imposed under the 649 
provisions of this section are received by the commissioner, the 650 
Comptroller is authorized to record as revenue for such fiscal year the 651 
amounts of such tax that are received by the commissioner not later than 652 
five business days from the last day of July immediately following the 653 
end of such fiscal year. 654 
Sec. 7. Subdivision (1) of section 12-408 of the general statutes is 655 
repealed and the following is substituted in lieu thereof (Effective from 656 
passage): 657 
(1) (A) For the privilege of making any sales, as defined in 658 
subdivision (2) of subsection (a) of section 12-407, at retail, in this state 659 
for a consideration, a tax is hereby imposed on all retailers at the rate of 660 
six and thirty-five-hundredths per cent of the gross receipts of any 661 
retailer from the sale of all tangible personal property sold at retail or 662 
from the rendering of any services constituting a sale in accordance with 663 
subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 664 
rate, the rates provided in subparagraphs (B) to [(I)] (J), inclusive, of this 665 
subdivision; 666 
(B) (i) At a rate of fifteen per cent with respect to each transfer of 667 
occupancy, from the total amount of rent received by a hotel or lodging 668 
house for the first period not exceeding thirty consecutive calendar 669 
days; 670 
(ii) At a rate of eleven per cent with respect to each transfer of 671 
occupancy, from the total amount of rent received by a bed and 672 
breakfast establishment for the first period not exceeding thirty 673 
consecutive calendar days; 674 
(C) With respect to the sale of a motor vehicle to any individual who 675 
is a member of the armed forces of the United States and is on full-time 676  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	23 of 33 
 
active duty in Connecticut and who is considered, under 50 App USC 677 
574, a resident of another state, or to any such individual and the spouse 678 
thereof, at a rate of four and one-half per cent of the gross receipts of any 679 
retailer from such sales, provided such retailer requires and maintains a 680 
declaration by such individual, prescribed as to form by the 681 
commissioner and bearing notice to the effect that false statements made 682 
in such declaration are punishable, or other evidence, satisfactory to the 683 
commissioner, concerning the purchaser's state of residence under 50 684 
App USC 574; 685 
(D) (i) With respect to the sales of computer and data processing 686 
services occurring on or after July 1, 2001, at the rate of one per cent, and 687 
(ii) with respect to sales of Internet access services, on and after July 1, 688 
2001, such services shall be exempt from such tax; 689 
(E) (i) With respect to the sales of labor that is otherwise taxable under 690 
subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 691 
12-407 on existing vessels and repair or maintenance services on vessels 692 
occurring on and after July 1, 1999, such services shall be exempt from 693 
such tax; 694 
(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 695 
used for transporting a vessel, at the rate of two and ninety-nine-696 
hundredths per cent, except that the sale of a vessel shall be exempt from 697 
such tax if such vessel is docked in this state for sixty or fewer days in a 698 
calendar year; 699 
(iii) With respect to the sale of dyed diesel fuel, as defined in 700 
subsection (d) of section 12-487, sold by a marine fuel dock exclusively 701 
for marine purposes, at the rate of two and ninety-nine-hundredths per 702 
cent; 703 
(F) With respect to patient care services for which payment is 704 
received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 705 
at the rate of five and three-fourths per cent and on and after July 1, 2001, 706 
such services shall be exempt from such tax; 707  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	24 of 33 
 
(G) With respect to the rental or leasing of a passenger motor vehicle 708 
for a period of thirty consecutive calendar days or less, at a rate of nine 709 
and thirty-five-hundredths per cent; 710 
(H) With respect to the sale of (i) a motor vehicle for a sales price 711 
exceeding fifty thousand dollars, at a rate of seven and three-fourths per 712 
cent on the entire sales price, (ii) jewelry, whether real or imitation, for 713 
a sales price exceeding five thousand dollars, at a rate of seven and 714 
three-fourths per cent on the entire sales price, and (iii) an article of 715 
clothing or footwear intended to be worn on or about the human body, 716 
a handbag, luggage, umbrella, wallet or watch for a sales price 717 
exceeding one thousand dollars, at a rate of seven and three-fourths per 718 
cent on the entire sales price. For purposes of this subparagraph, "motor 719 
vehicle" has the meaning provided in section 14-1, but does not include 720 
a motor vehicle subject to the provisions of subparagraph (C) of this 721 
subdivision, a motor vehicle having a gross vehicle weight rating over 722 
twelve thousand five hundred pounds, or a motor vehicle having a 723 
gross vehicle weight rating of twelve thousand five hundred pounds or 724 
less that is not used for private passenger purposes, but is designed or 725 
used to transport merchandise, freight or persons in connection with 726 
any business enterprise and issued a commercial registration or more 727 
specific type of registration by the Department of Motor Vehicles; 728 
(I) With respect to the sale of meals, as defined in subdivision (13) of 729 
section 12-412, sold by an eating establishment, caterer or grocery store; 730 
and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 731 
such as are ordinarily dispensed at bars and soda fountains, or in 732 
connection therewith; in addition to the tax imposed under 733 
subparagraph (A) of this subdivision, at the rate of one per cent; 734 
(J) On and after the date the Cannabis Control Commission first 735 
issues a license to a cannabis retailer, with respect to the sale of cannabis 736 
and cannabis products, at a rate of twenty per cent. As used in this 737 
subparagraph, "cannabis", "cannabis product", "cannabis retailer" and 738 
"Cannabis Control Commission" have the same meanings as provided 739 
in section 6 of this act; 740  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	25 of 33 
 
[(J)] (K) The rate of tax imposed by this chapter shall be applicable to 741 
all retail sales upon the effective date of such rate, except that a new rate 742 
that represents an increase in the rate applicable to the sale shall not 743 
apply to any sales transaction wherein a binding sales contract without 744 
an escalator clause has been entered into prior to the effective date of the 745 
new rate and delivery is made within ninety days after the effective date 746 
of the new rate. For the purposes of payment of the tax imposed under 747 
this section, any retailer of services taxable under subdivision (37) of 748 
subsection (a) of section 12-407, who computes taxable income, for 749 
purposes of taxation under the Internal Revenue Code of 1986, or any 750 
subsequent corresponding internal revenue code of the United States, 751 
as amended from time to time, on an accounting basis that recognizes 752 
only cash or other valuable consideration actually received as income 753 
and who is liable for such tax only due to the rendering of such services 754 
may make payments related to such tax for the period during which 755 
such income is received, without penalty or interest, without regard to 756 
when such service is rendered; 757 
[(K)] (L) (i) For calendar quarters ending on or after September 30, 758 
2019, the commissioner shall deposit into the regional planning 759 
incentive account, established pursuant to section 4-66k, six and seven-760 
tenths per cent of the amounts received by the state from the tax 761 
imposed under subparagraph (B) of this subdivision and ten and seven-762 
tenths per cent of the amounts received by the state from the tax 763 
imposed under subparagraph (G) of this subdivision; 764 
(ii) For calendar quarters ending on or after September 30, 2018, the 765 
commissioner shall deposit into the Tourism Fund established under 766 
section 10-395b ten per cent of the amounts received by the state from 767 
the tax imposed under subparagraph (B) of this subdivision; 768 
[(L)] (M) For calendar months commencing on or after July 1, 2021, 769 
the commissioner shall deposit into the municipal revenue sharing 770 
account established pursuant to section 4-66l seven and nine-tenths per 771 
cent of the amounts received by the state from the tax imposed under 772 
subparagraph (A) of this subdivision; and 773  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	26 of 33 
 
[(M)] (N) (i) For calendar months commencing on or after July 1, 2017, 774 
the commissioner shall deposit into the Special Transportation Fund 775 
established under section 13b-68 seven and nine-tenths per cent of the 776 
amounts received by the state from the tax imposed under 777 
subparagraph (A) of this subdivision; 778 
(ii) For calendar months commencing on or after July 1, 2018, but 779 
prior to July 1, 2019, the commissioner shall deposit into the Special 780 
Transportation Fund established under section 13b-68 eight per cent of 781 
the amounts received by the state from the tax imposed under 782 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 783 
vehicle; 784 
(iii) For calendar months commencing on or after July 1, 2019, but 785 
prior to July 1, 2020, the commissioner shall deposit into the Special 786 
Transportation Fund established under section 13b-68 seventeen per 787 
cent of the amounts received by the state from the tax imposed under 788 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 789 
vehicle;  790 
(iv) For calendar months commencing on or after July 1, 2020, but 791 
prior to July 1, 2021, the commissioner shall deposit into the Special 792 
Transportation Fund established under section 13b-68 twenty-five per 793 
cent of the amounts received by the state from the tax imposed under 794 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 795 
vehicle; 796 
(v) For calendar months commencing on or after July 1, 2021, but 797 
prior to July 1, 2022, the commissioner shall deposit into the Special 798 
Transportation Fund established under section 13b-68 seventy-five per 799 
cent of the amounts received by the state from the tax imposed under 800 
subparagraphs (A) and (H) of this subdivision on the sale of a motor 801 
vehicle; and 802 
(vi) For calendar months commencing on or after July 1, 2022, the 803 
commissioner shall deposit into the Special Transportation Fund 804 
established under section 13b-68 one hundred per cent of the amounts 805  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	27 of 33 
 
received by the state from the tax imposed under subparagraphs (A) 806 
and (H) of this subdivision on the sale of a motor vehicle; and 807 
(O) For calendar quarters ending on or after the initial deposit of the 808 
tax on the sale of cannabis and cannabis products, each as defined in 809 
section 6 of this act, the commissioner shall deposit into the Community 810 
Development Corporation Trust Fund established under section 4 of 811 
this act one hundred per cent of the amounts received and retained by 812 
the state from the tax imposed under subparagraph (J) of this 813 
subdivision. 814 
Sec. 8. Section 12-408 of the general statutes is amended by adding 815 
subdivision (8) as follows (Effective from passage): 816 
(NEW) (8) No tax credit or credits shall be allowable against the tax 817 
imposed under subparagraph (J) of subdivision (1) of this section. 818 
Sec. 9. Section 36a-455a of the general statutes is repealed and the 819 
following is substituted in lieu thereof (Effective from passage): 820 
A Connecticut credit union may: 821 
(1) Transact a general credit union business and exercise by its 822 
governing board or duly authorized members of senior management, 823 
subject to applicable law, all such incidental powers as are consistent 824 
with its purposes. The express powers authorized for a Connecticut 825 
credit union under this section do not preclude the existence of 826 
additional powers deemed to be incidental to the transaction of a 827 
general credit union business pursuant to this subdivision; 828 
(2) (A) Issue shares to its members and receive payments on shares 829 
from its members and from those nonmembers specified in subsection 830 
(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 831 
36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 832 
receive deposits of members and nonmembers subject to provisions of 833 
sections 36a-456a and 36a-456b, (C) reduce the amount of its member 834 
and nonmember shares and deposits, (D) expel members and cancel 835  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	28 of 33 
 
shares in accordance with section 36a-439a, and (E) provide check 836 
cashing and wire and electronic transfer services to nonmembers who 837 
are within such credit union's field of membership; 838 
(3) Make and use its best efforts to make secured and unsecured loans 839 
and other extensions of credit to its members in accordance with section 840 
36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 841 
(4) Invest its funds in accordance with section 36a-459a; 842 
(5) Declare and pay dividends in accordance with sections 36a-441a 843 
and 36a-456c, and pay interest refunds to borrowers; 844 
(6) Act as a finder or agent for the sale of insurance and fixed and 845 
variable rate annuities directly, sell insurance and such annuities 846 
indirectly through a Connecticut credit union service organization, or 847 
enter into arrangements with third-party marketing organizations for 848 
the sale by such third-party marketing organizations of insurance or 849 
such annuities on the premises of the Connecticut credit union or to 850 
members of the Connecticut credit union, provided: (A) Such insurance 851 
and annuities are issued or purchased by or from an insurance company 852 
licensed in accordance with section 38a-41; and (B) the Connecticut 853 
credit union, Connecticut credit union service organization or third-854 
party marketing organization, and any officer and employee thereof, 855 
shall be licensed as required by section 38a-769 before engaging in any 856 
of the activities authorized by this subdivision. As used in this 857 
subdivision, "annuities" and "insurance" have the same meanings as set 858 
forth in section 38a-41, except that "insurance" does not include title 859 
insurance. The provisions of this subdivision do not authorize a 860 
Connecticut credit union or Connecticut credit union service 861 
organization to underwrite insurance or annuities; 862 
(7) Borrow money to an amount not exceeding fifty per cent of the 863 
total assets of the Connecticut credit union provided the credit union 864 
shall give prior notice to the commissioner in writing of its intention to 865 
borrow amounts in excess of thirty-five per cent of its total assets; 866  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	29 of 33 
 
(8) Act as fiscal agent for the federal government, this state or any 867 
agency or political subdivision thereof; 868 
(9) Provide loan processing, loan servicing, member check and 869 
money order cashing services, disbursement of share withdrawals and 870 
loan proceeds, money orders, internal audits, automated teller machine 871 
services, ACH and wire transfer services, prepaid debit cards, payroll 872 
cards, digital wallet services, coin and currency services, remote deposit 873 
capture services, electronic banking and other similar services to other 874 
Connecticut credit unions, federal credit unions, federally insured 875 
financial institutions and out-of-state credit unions; 876 
(10) Provide finder services to its members, including the offering of 877 
third party products and services through the sale of advertising space 878 
on its web site, account statements and receipts, and the sale of statistical 879 
or consumer financial information to outside vendors in accordance 880 
with sections 36a-40 to 36a-45, inclusive, in order to facilitate the sale of 881 
such products to the members of such Connecticut credit union; 882 
(11) With the prior approval of the commissioner, exercise fiduciary 883 
powers; 884 
(12) Maintain and rent safe deposit boxes within suitably constructed 885 
vaults, provided the Connecticut credit union has adequate insurance 886 
coverage for losses related to such rental; 887 
(13) Provide certification services, including notary services, 888 
signature guaranties, certification of electronic signatures and share 889 
draft certifications; 890 
(14) Act as agent (A) in the collection of taxes for any qualified 891 
treasurer of any taxing district or qualified collector of taxes, or (B) for 892 
any electric distribution, gas, water or telephone company operating 893 
within this state in receiving moneys due such company for utility 894 
services furnished by it; 895 
(15) Issue and sell securities which (A) are guaranteed by the Federal 896  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	30 of 33 
 
National Mortgage Association or any other agency or instrumentality 897 
authorized by state or federal law to create a secondary market with 898 
respect to extensions of credit of the type originated by the Connecticut 899 
credit union, or (B) subject to the approval of the commissioner, relate 900 
to extensions of credit originated by the Connecticut credit union and 901 
are guaranteed or insured by a financial guaranty insurance company 902 
or comparable private entity; 903 
(16) Establish a charitable fund, either in the form of a charitable trust 904 
or a nonprofit corporation to assist in making charitable contributions, 905 
provided (A) the trust or nonprofit corporation is exempt from federal 906 
income taxation and may accept charitable contributions under Section 907 
501 of the Internal Revenue Code of 1986, or any subsequent 908 
corresponding internal revenue code of the United States, as from time 909 
to time amended, (B) the trust or nonprofit corporation's operations are 910 
disclosed fully to the commissioner upon request, and (C) the trust 911 
department of the credit union or one or more directors or members of 912 
senior management of the credit union act as trustees or directors of the 913 
fund; 914 
(17) In the discretion of a majority of its governing board, make 915 
contributions or gifts to or for the use of any corporation, trust or 916 
community chest, fund or foundation created or organized under the 917 
laws of the United States or of this state and organized and operated 918 
exclusively for charitable, educational or public welfare purposes, or of 919 
any hospital which is located in this state and which is exempt from 920 
federal income taxes and to which contributions are deductible under 921 
Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 922 
corresponding internal revenue code of the United States, as from time 923 
to time amended; 924 
(18) Subject to the provisions of section 36a-455b, sell, pledge or 925 
assign any or all of its outstanding extensions of credit to any other 926 
lending institution, credit union service organization or quasi-927 
governmental entity and any government-sponsored enterprise, and act 928 
as collecting, remitting and servicing agent in connection with any such 929  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	31 of 33 
 
extension of credit and charge for its acts as agent. Any such credit union 930 
may purchase the minimum amount of capital stock of such entity or 931 
enterprise if required by that entity or enterprise to be purchased in 932 
connection with the sale, pledge or assignment of extensions of credit to 933 
that entity or enterprise and may hold and dispose of such stock, 934 
provided that with respect to purchases of stock of a credit union service 935 
organization, the Connecticut credit union shall not exceed the 936 
limitations of section 36a-459a. A Connecticut credit union may 937 
purchase one or more outstanding extensions of credit from any other 938 
lending institution and any federally-recognized Native American tribe, 939 
provided there exists a formal written agreement with tribal 940 
government to permit the credit union to service and collect on such 941 
extensions of credit; 942 
(19) Subject to the provisions of section 36a-455b, sell a participating 943 
interest in any or all of its outstanding extensions of credit to and 944 
purchase a participating interest in any or all of the outstanding 945 
extensions of credit of any financial institution or credit union service 946 
organization pursuant to an appropriate written participation and 947 
servicing agreement to be signed by all parties involved in such 948 
transaction; 949 
(20) With the approval of the commissioner, join the Federal Home 950 
Loan Bank System and borrow funds as provided under federal law; 951 
(21) Subject to the provisions of section 36a-455b, sell all or part of its 952 
assets, other than extensions of credit, to other lending institutions, 953 
purchase all or part of the assets, other than extensions of credit, of other 954 
lending institutions, and assume all or part of the shares and the 955 
liabilities of any other credit union or out-of-state credit union; 956 
(22) With the prior written approval of the commissioner, engage in 957 
closely related activities, unless the commissioner determines that any 958 
such activity shall be conducted by a credit union service organization 959 
of the Connecticut credit union, utilizing such organizational, structural 960 
or other safeguards as the commissioner may require, in order to protect 961  Raised Bill No.  1104 
 
 
 
LCO No. 6689   	32 of 33 
 
the Connecticut credit union from exposure to loss. As used in this 962 
subdivision, "closely related activities" means those activities that are 963 
closely related, convenient and necessary to the business of a 964 
Connecticut credit union, are reasonably related to the operation of a 965 
Connecticut credit union or are financial in nature including, but not 966 
limited to, business and professional services, data processing, courier 967 
and messenger services, credit-related activities, consumer services, 968 
services related to real estate, financial consulting, tax planning and 969 
preparation, community development activities, or any activities 970 
reasonably related to such activities; 971 
(23) Engage in any activity that a federal credit union or out-of-state 972 
credit union may be authorized to engage in under state or federal law, 973 
provided the Connecticut credit union file with the commissioner prior 974 
written notice of its intention to engage in such activity. Such notice shall 975 
include a description of the activity, a description of the financial impact 976 
of the activity on the Connecticut credit union, citation of the legal 977 
authority to engage in the activity under state or federal law, a 978 
description of any limitations or restrictions imposed on such activity 979 
under state or federal law, and any other information that the 980 
commissioner may require. The Connecticut credit union may engage 981 
in any such activity unless the commissioner disapproves such activity 982 
not later than thirty days after the notice is filed. The commissioner may 983 
adopt regulations in accordance with chapter 54 to ensure that any such 984 
activity is conducted in a safe and sound manner with adequate 985 
consumer protections. The provisions of this subdivision do not 986 
authorize a Connecticut credit union or a Connecticut credit union 987 
service organization to sell title insurance;  988 
(24) (A) Partner with a community development corporation, as 989 
described in section 1 of this act, and be designated as a community 990 
development credit union in accordance with the provisions of section 991 
2 of this act, (B) if so designated, engage in any activity authorized for a 992 
community development credit union under sections 1 and 2 of this act, 993 
and (C) issue social impact bonds in accordance with subdivision (5) of 994 
subsection (c) of section 2 of this act.  995  Raised Bill No.  1104 
 
 
 
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This act shall take effect as follows and shall amend the following 
sections: 
 
Section 1 from passage New section 
Sec. 2 from passage New section 
Sec. 3 from passage New section 
Sec. 4 from passage New section 
Sec. 5 from passage New section 
Sec. 6 from passage New section 
Sec. 7 from passage 12-408(1) 
Sec. 8 from passage 12-408 
Sec. 9 from passage 36a-455a 
 
Statement of Purpose:   
To implement certain community restoration and revitalization efforts 
through the establishment of community development corporations, 
community development credit unions and community impact zones, 
using tax revenue from the sale of cannabis and cannabis products and 
deposits in lieu of taxes payments. 
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except 
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not 
underlined.]