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 LCO No. 6689 2 of 33 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 LCO No. 6689 3 of 33 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 LCO No. 6689 4 of 33 (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 LCO No. 6689 5 of 33 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 LCO No. 6689 6 of 33 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 LCO No. 6689 7 of 33 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 LCO No. 6689 8 of 33 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 LCO No. 6689 9 of 33 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 LCO No. 6689 10 of 33 (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 LCO No. 6689 11 of 33 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 LCO No. 6689 12 of 33 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 LCO No. 6689 13 of 33 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 LCO No. 6689 14 of 33 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 LCO No. 6689 15 of 33 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 LCO No. 6689 16 of 33 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 LCO No. 6689 17 of 33 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 LCO No. 6689 33 of 33 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.]