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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
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(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
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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
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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
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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
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(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
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(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
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[(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
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[(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.]