Connecticut 2021 Regular Session

Connecticut Senate Bill SB01104 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-
2		-
3		-	LCO \\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-R01-
4		-	SB.docx
5		-	1 of 33
6	1
7	2
8	3
9		-	General Assembly Substitute Bill No. 1104
	4	+
	5	+	LCO No. 6689 1 of 33
	6	+
	7	+	General Assembly Raised Bill No. 1104
10	8		January Session, 2021
	9	+	LCO No. 6689
	10	+
	11	+
	12	+	Referred to Committee on FINANCE, REVENUE AND
	13	+	BONDING
	14	+
	15	+
	16	+	Introduced by:
	17	+	(FIN)
	18	+
11	19
12	20
13	21
14	22		AN ACT CONCERNING CO MMUNITY RESTORATION FUNDS.
15	23		Be it enacted by the Senate and House of Representatives in General
16	24		Assembly convened:
17	25
18	26		Section 1. (NEW) (Effective from passage) (a) There are established 1
19	27		community development corporations, which shall use the revenue 2
20		-	from the tax imposed under subparagraph (J) of subdivision (1) of 3
21		-	section 12-408 of the general statutes, as amended by this act, and the 4
22		-	moneys transferred to the Community Development Corporation Trust 5
23		-	Fund pursuant to subdivision (2) of subsection (e) of section 6 of this act, 6
24		-	for the community restoration and revitalization purposes set forth in 7
25		-	this section and section 2 of this act. Such moneys shall be disbursed by 8
26		-	and used in coordination with the community development corporation 9
27		-	oversight council established under section 3 of this act. 10
28		-	(b) (1) Any entity that is (A) exempt from tax pursuant to Section 11
29		-	501(c) of the Internal Revenue Code of 1986, or any subsequent 12
30		-	corresponding internal revenue code of the United States, as amended 13
31		-	from time to time, and (B) located, at the time such entity submits an 14
32		-	application for designation, in a distressed municipality, as defined in 15
33		-	section 32-9p of the general statutes, may apply to the council to be 16
34		-	designated as a community development corporation. 17
35		-	(2) To be eligible to be designated as a community development 18 Substitute Bill No. 1104
	28	+	from the taxes imposed under subsection (b) of section 6 of this act and 3
	29	+	the portion of the tax received and retained by the state from sales 4
	30	+	subject to the tax under subsection (b) of section 7 of this act, for the 5
	31	+	community restoration and revitalization purposes set forth in this 6
	32	+	section and section 2 of this act. Such moneys shall be disbursed by and 7
	33	+	used in coordination with the community development corporation 8
	34	+	oversight council established under section 3 of this act. 9
	35	+	(b) (1) Any entity that is exempt from tax pursuant to Section 501(c) 10
	36	+	of the Internal Revenue Code of 1986, or any subsequent corresponding 11
	37	+	internal revenue code of the United States, as amended from time to 12
	38	+	time, and is located in a distressed municipality, as defined in section 13
	39	+	32-9p of the general statutes, at the time such entity submits an 14
	40	+	application for designation, may apply to the council to be designated 15 Raised Bill No. 1104
36	41
37	42
38		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
39		-	R01-SB.docx }
40		-	2 of 33
41	43
42		-	corporation, such entity shall: 19
43		-	(A) (i) Have demonstrated effectiveness in, or have been formed for 20
44		-	the purpose of, building, attracting and retaining neighborhood wealth, 21
45		-	and (ii) provide financial, educational or related services to support 22
46		-	initiatives that concentrate investments in human capital and 23
47		-	infrastructure in a specific neighborhood or neighborhoods, with 24
48		-	measurable community revitalization achievements; 25
49		-	(B) Agree to focus all its efforts in the distressed municipality in 26
50		-	which it is located; 27
51		-	(C) Agree to establish its primary office in, or relocate its primary 28
52		-	office to, a community impact zone within the municipality after such 29
53		-	zones are designated pursuant to section 3 of this act; and 30
54		-	(D) Agree to establish or relocate any auxiliary locations to within the 31
55		-	boundaries of the municipality in which the corporation is located. 32
56		-	(c) (1) Each community development corporation shall provide 33
57		-	programs, services and assistance or issue grants to support community 34
58		-	reinvestment strategies in the community impact zone in which such 35
59		-	corporation is located, including, but not limited to, the following, in 36
60		-	order of priority: 37
61		-	(A) Encouraging early childhood initiatives through the provision, 38
62		-	directly or in collaboration with other entities, of free or low-cost early 39
63		-	childhood education services to families that reside within the 40
64		-	community impact zone, without regard to family income level. Such 41
65		-	services shall include kindergarten preparedness and kindergarten 42
66		-	readiness assessments. The corporation may expand such services 43
67		-	beyond the community impact zone but within the municipality to areas 44
68		-	with poverty levels above the municipal average; 45
69		-	(B) Increasing achievement at public elementary and middle schools 46
70		-	located in the community impact zone. The corporation shall coordinate 47
71		-	with officials of such schools to submit grant applications to the 48 Substitute Bill No. 1104
	44	+	LCO No. 6689 2 of 33
	45	+
	46	+	as a community development corporation. 16
	47	+	(2) To be eligible to be designated as a community development 17
	48	+	corporation, such entity shall: 18
	49	+	(A) (i) Have demonstrated effectiveness in, or have been formed for 19
	50	+	the purpose of, building, attracting and retaining neighborhood wealth, 20
	51	+	and (ii) provide financial, educational or related services to support 21
	52	+	initiatives that concentrate investments in human capital and 22
	53	+	infrastructure in a specific neighborhood or neighborhoods, with 23
	54	+	measurable community revitalization achievements; 24
	55	+	(B) Agree to focus all its efforts in the distressed municipality in 25
	56	+	which it is located; 26
	57	+	(C) Agree to establish or relocate its primary office in a community 27
	58	+	impact zone within the municipality after such zones are designated 28
	59	+	pursuant to section 3 of this act; and 29
	60	+	(D) Agree to establish or relocate any auxiliary locations to within the 30
	61	+	boundaries of the municipality in which the corporation is located. 31
	62	+	(c) (1) Each community development corporation shall provide 32
	63	+	programs, services and assistance or issue grants to support community 33
	64	+	reinvestment strategies in the community impact zone in which such 34
	65	+	corporation is located, including, but not limited to, the following, in 35
	66	+	order of priority: 36
	67	+	(A) Encouraging early childhood initiatives through the provision, 37
	68	+	directly or in collaboration with other entities, of free or low-cost early 38
	69	+	childhood education services to families that reside within the 39
	70	+	community impact zone, without regard to family income level. Such 40
	71	+	services shall include kindergarten preparedness and kindergarten 41
	72	+	readiness assessments. The corporation may expand such services 42
	73	+	beyond the community impact zone but within the municipality to areas 43
	74	+	with poverty levels above the municipal average; 44
	75	+	(B) Increasing achievement at public elementary and middle schools 45 Raised Bill No. 1104
72	76
73	77
74		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
75		-	R01-SB.docx }
76		-	3 of 33
77	78
78		-	community development corporation oversight council to supplement 49
79		-	per-student funding for such schools to match or approach the highest 50
80		-	levels of per-student funding at any elementary or middle school in the 51
81		-	state. Schools that receive such grants shall (i) set goals to achieve scores 52
82		-	in the top percentiles on the state-wide mastery examination under 53
83		-	section 10-14n of the general statutes. The council shall set specific target 54
84		-	goals for each school that receives a grant pursuant to this 55
85		-	subparagraph, and (ii) guarantee that a student residing in the 56
86		-	community impact zone will be able to attend that specific school; 57
87		-	(C) Rebuilding community assets through: 58
88		-	(i) The construction, renovation or repair of neighborhood structures 59
89		-	or assets of economic or other community significance, including, but 60
90		-	not limited to, playgrounds, sidewalks, parks, community centers, 61
91		-	senior centers, public libraries, urban gardens and green spaces. Only 62
92		-	projects for structures or assets that are owned by the federal, state or 63
93		-	municipal government, the community development corporation 64
94		-	located in the community impact zone where such structure or asset is 65
95		-	located, the partnered community development credit union, as 66
96		-	described in section 2 of this act, or a resident of the municipality in 67
97		-	which such structure or asset is located shall be eligible to receive 68
98		-	funding under this subparagraph. The corporation shall seek to train 69
99		-	residents of the community impact zone to perform some of the work 70
100		-	such projects require, directly or indirectly through partnerships with 71
101		-	existing technical education and apprenticeship programs and with 72
102		-	other entities; and 73
103		-	(ii) The retention, sale or rental of such structures or assets after 74
104		-	completion, provided any sale shall be to a resident of the community 75
105		-	impact zone only. The partnered community development credit union 76
106		-	may develop a cooperative model for owning and renting such 77
107		-	structures or assets; 78
108		-	(D) Increasing owner-occupancy of residential buildings through: 79 Substitute Bill No. 1104
	79	+	LCO No. 6689 3 of 33
	80	+
	81	+	located in the community impact zone. The corporation shall coordinate 46
	82	+	with officials of such schools to submit grant applications to the 47
	83	+	community development corporation oversight council to supplement 48
	84	+	per-student funding for such schools to match or approach the highest 49
	85	+	levels of per-student funding at any elementary or middle school in the 50
	86	+	state. Schools that receive such grants shall (i) set goals to achieve scores 51
	87	+	in the top percentiles on the state-wide mastery examination under 52
	88	+	section 10-14n of the general statutes. The council shall set specific target 53
	89	+	goals for each school that receives a grant pursuant to this 54
	90	+	subparagraph, and (ii) guarantee that a student residing in the 55
	91	+	community impact zone will be able to attend that specific school; 56
	92	+	(C) Rebuilding community assets through: 57
	93	+	(i) The construction, renovation or repair of neighborhood structures 58
	94	+	or assets of economic or other community significance, including, but 59
	95	+	not limited to, playgrounds, sidewalks, parks, community centers, 60
	96	+	senior centers, public libraries, urban gardens and green spaces. Only 61
	97	+	projects for structures or assets that are owned by the federal, state or 62
	98	+	municipal government, the community development corporation 63
	99	+	located in the community impact zone where such structure or asset is 64
	100	+	located, the partnered community development credit union, as 65
	101	+	described in section 2 of this act, or a resident of the municipality in 66
	102	+	which such structure or asset is located shall be eligible to receive 67
	103	+	funding under this subparagraph. The corporation shall seek to train 68
	104	+	residents of the community impact zone to perform some of the work 69
	105	+	such projects require, directly or indirectly through partnerships with 70
	106	+	existing technical education and apprenticeship programs and with 71
	107	+	other entities; and 72
	108	+	(ii) The retention, sale or rental of such structures or assets after 73
	109	+	completion, provided any sale shall be to a resident of the community 74
	110	+	impact zone only. The partnered community development credit union 75
	111	+	may develop a cooperative model for owning and renting such 76
	112	+	structures or assets; 77 Raised Bill No. 1104
109	113
110	114
111		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
112		-	R01-SB.docx }
113		-	4 of 33
114	115
115		-	(i) Tracking and undertaking efforts to increase the percentage of 80
116		-	owner-occupied residential buildings in the community impact zone. 81
117		-	The corporation shall set five-year target percentages and shall 82
118		-	periodically evaluate and revise such target amounts; 83
119		-	(ii) The restoration and repair of multifamily rental buildings located 84
120		-	in the community impact zone to convert such buildings into owner-85
121		-	occupied residential buildings or multifamily cooperative buildings 86
122		-	with at least one unit to be a rental unit. Only projects for multifamily 87
123		-	rental buildings owned by the community development corporation 88
124		-	located in the community impact zone, the partnered community 89
125		-	development credit union or a resident of the municipality in which 90
126		-	such building is located shall be eligible to receive funding under this 91
127		-	subparagraph. A multifamily rental building that is not owned by such 92
128		-	corporation, credit union or resident may be considered for funding 93
129		-	under this subparagraph, provided the owner of such building agrees, 94
130		-	in writing, to terms set forth by the corporation that further the purposes 95
131		-	of this section. The corporation may promote participation in existing 96
132		-	state and housing programs to encourage owner occupancy; and 97
133		-	(iii) The retention, sale or rental of such buildings after completion, 98
134		-	provided any sale shall be to a resident of the community impact zone 99
135		-	only. The corporation or the partnered community development credit 100
136		-	union may develop a cooperative model for owning and renting such 101
137		-	buildings; 102
138		-	(E) Supporting pathways to home ownership through the offering of 103
139		-	home buyer education and financial literacy programs in partnership 104
140		-	with existing programs. All such partnerships shall be joint efforts 105
141		-	between the community development corporation and its partnered 106
142		-	community development credit union and each such credit union may 107
143		-	develop and offer subsidized or incentivized financial products for 108
144		-	individuals who participate in such programs; 109
145		-	(F) Creating pipelines to employment for residents of a community 110
146		-	impact zone through: 111 Substitute Bill No. 1104
	116	+	LCO No. 6689 4 of 33
	117	+
	118	+	(D) Increasing owner-occupancy of residential buildings through: 78
	119	+	(i) Tracking and undertaking efforts to increase the percentage of 79
	120	+	owner-occupied residential buildings in the community impact zone. 80
	121	+	The corporation shall set five-year target percentages and shall 81
	122	+	periodically evaluate and revise such target amounts; 82
	123	+	(ii) The restoration and repair of multifamily rental buildings located 83
	124	+	in the community impact zone to convert such buildings into owner-84
	125	+	occupied residential buildings or multifamily cooperative buildings 85
	126	+	with at least one unit to be a rental unit. Only projects for multifamily 86
	127	+	rental buildings owned by the community development corporation 87
	128	+	located in the community impact zone, the partnered community 88
	129	+	development credit union or a resident of the municipality in which 89
	130	+	such building is located shall be eligible to receive funding under this 90
	131	+	subparagraph. A multifamily rental building that is not owned by such 91
	132	+	corporation, credit union or resident may be considered for funding 92
	133	+	under this subparagraph, provided the owner of such building agrees, 93
	134	+	in writing, to terms set forth by the corporation that further the purposes 94
	135	+	of this section. The corporation may promote participation in existing 95
	136	+	state and housing programs to encourage owner occupancy; and 96
	137	+	(iii) The retention, sale or rental of such buildings after completion, 97
	138	+	provided any sale shall be to a resident of the community impact zone 98
	139	+	only. The corporation or the partnered community development credit 99
	140	+	union may develop a cooperative model for owning and renting such 100
	141	+	buildings; 101
	142	+	(E) Supporting pathways to home ownership through the offering of 102
	143	+	home buyer education and financial literacy programs in partnership 103
	144	+	with existing programs. All such partnerships shall be joint efforts 104
	145	+	between the community development corporation and its partnered 105
	146	+	community development credit union and each such credit union may 106
	147	+	develop and offer subsidized or incentivized financial products for 107
	148	+	individuals who participate in such programs; 108
	149	+	(F) Creating pipelines to employment for residents of a community 109 Raised Bill No. 1104
147	150
148	151
149		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
150		-	R01-SB.docx }
151		-	5 of 33
152	152
153		-	(i) The implementation of or participation in community work-based 112
154		-	training programs, in consultation or coordination with other 113
155		-	organizations, including, but not limited to, the Workforce Investment 114
156		-	Boards. Such programs shall provide preapprenticeship or 115
157		-	apprenticeship opportunities by providing instruction or training to 116
158		-	increase literacy, mathematics and other technical, prevocational or 117
159		-	vocational skills and connecting workforce, economic development and 118
160		-	education systems with businesses and other stakeholders in the 119
161		-	community impact zone. All such efforts undertaken by a community 120
162		-	development corporation shall focus on the residents of the community 121
163		-	impact zone in which such corporation is located and on businesses 122
164		-	offering or carrying out training programs, in order of priority, (I) 123
165		-	within the community impact zone, (II) within the municipality in 124
166		-	which the community impact zone is located, or (III) without the 125
167		-	municipality; and 126
168		-	(ii) The placement of residents of the community impact zone with 127
169		-	businesses offering employment or on-the-job training that are, in order 128
170		-	of priority, (I) within the community impact zone, (II) within the 129
171		-	municipality in which the community impact zone is located, or (III) 130
172		-	without the municipality only after the opportunities under subclauses 131
173		-	(I) and (II) of this clause have been exhausted; 132
174		-	(G) Expanding access to programs at existing community centers or 133
175		-	senior centers that serve all residents of the community impact zone, 134
176		-	regardless of age, or converting such existing centers to centers that 135
177		-	serve all residents of the community impact zone, regardless of age; and 136
178		-	(H) Providing municipal residents with low-cost transportation 137
179		-	options by developing or supporting transportation alternatives within 138
180		-	and between municipalities for travel to and from employment, home, 139
181		-	school, retail stores and entertainment venues. 140
182		-	(2) If the corporation has insufficient funds to execute to a high level 141
183		-	of quality all of the strategies set forth in subdivision (1) of this 142
184		-	subsection, the corporation shall pursue each strategy in the order of 143 Substitute Bill No. 1104
	153	+	LCO No. 6689 5 of 33
	154	+
	155	+	impact zone through: 110
	156	+	(i) The implementation of or participation in community work-based 111
	157	+	training programs, in consultation or coordination with other 112
	158	+	organizations, including, but not limited to, the Workforce Investment 113
	159	+	Boards. Such programs shall provi de preapprenticeship or 114
	160	+	apprenticeship opportunities by providing instruction or training to 115
	161	+	increase literacy, mathematics and other technical, prevocational or 116
	162	+	vocational skills and connecting workforce, economic development and 117
	163	+	education systems with businesses and other stakeholders in the 118
	164	+	community impact zone. All such efforts undertaken by a community 119
	165	+	development corporation shall focus on the residents of the community 120
	166	+	impact zone in which such corporation is located and on businesses 121
	167	+	offering or carrying out training programs, in order of priority, (I) 122
	168	+	within the community impact zone, (II) within the municipality in 123
	169	+	which the community impact zone is located, or (III) without the 124
	170	+	municipality; and 125
	171	+	(ii) The placement of residents of the community impact zone with 126
	172	+	businesses offering employment or on-the-job training that are, in order 127
	173	+	of priority, (I) within the community impact zone, (II) within the 128
	174	+	municipality in which the community impact zone is located, or (III) 129
	175	+	without the municipality only after the opportunities under subclauses 130
	176	+	(I) and (II) of this clause have been exhausted; 131
	177	+	(G) Expanding access to programs at existing community centers or 132
	178	+	senior centers that serve all residents of the community impact zone, 133
	179	+	regardless of age, or converting such existing centers to centers that 134
	180	+	serve all residents of the community impact zone, regardless of age; and 135
	181	+	(H) Providing municipal residents with low-cost transportation 136
	182	+	options by developing or supporting transportation alternatives within 137
	183	+	and between municipalities for travel to and from employment, home, 138
	184	+	school, retail stores and entertainment venues. 139
	185	+	(2) If the corporation has insufficient funds to execute to a high level 140
	186	+	of quality all of the strategies set forth in subdivision (1) of this 141 Raised Bill No. 1104
185	187
186	188
187		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
188		-	R01-SB.docx }
189		-	6 of 33
190	189
191		-	priority listed in said subdivision, with an emphasis on achieving a high 144
192		-	level of quality in the execution and implementation of such strategy 145
193		-	before undertaking the next strategy listed. 146
194		-	(d) A community development corporation may: 147
195		-	(1) Acquire real property described in subsection (c) of this section in 148
196		-	partnership with or in coordination with its partnered community 149
197		-	development credit union; 150
198		-	(2) Operate as or establish a subsidiary that operates as a contractor 151
199		-	or subcontractor, provided such corporation or subsidiary complies 152
200		-	with all applicable licensing and registration requirements under the 153
201		-	general statutes; and 154
202		-	(3) Partner or contract with contractors or subcontractors to carry out 155
203		-	projects and related work for the purposes set forth in subsection (c) of 156
204		-	this section, provided the corporation shall give primary priority to a 157
205		-	contractor or subcontractor located in the community impact zone in 158
206		-	which the corporation is located and secondary priority to a contractor 159
207		-	or subcontractor located in the municipality in which the corporation is 160
208		-	located. 161
209		-	(e) Not later than six months after being designated as a community 162
210		-	development corporation, such corporation shall (1) identify a 163
211		-	Connecticut credit union located within the municipality in which such 164
212		-	corporation is located that will apply to the community development 165
213		-	corporation oversight council for designation as a community 166
214		-	development credit union pursuant to section 2 of this act, or (2) issue a 167
215		-	request for proposal for the organization of a new Connecticut credit 168
216		-	union to partner with, or for an existing Connecticut credit union to 169
217		-	partner with, such corporation. 170
218		-	(f) Notwithstanding the provisions of chapter 846 of the general 171
219		-	statutes or section 12-157 of the general statutes, a community 172
220		-	development corporation shall be offered the right of first refusal in the 173
221		-	sale of any real property that has been foreclosed or is being sold at 174 Substitute Bill No. 1104
	190	+	LCO No. 6689 6 of 33
	191	+
	192	+	subsection, the corporation shall pursue each strategy in the order of 142
	193	+	priority listed in said subdivision, with an emphasis on achieving a high 143
	194	+	level of quality in the execution and implementation of such strategy 144
	195	+	before undertaking the next strategy listed. 145
	196	+	(d) A community development corporation may: 146
	197	+	(1) Acquire real property described in subsection (c) of this section in 147
	198	+	partnership with or in coordination with its partnered community 148
	199	+	development credit union; 149
	200	+	(2) Operate as or establish a subsidiary that operates as a contractor 150
	201	+	or subcontractor, provided such corporation or subsidiary complies 151
	202	+	with all applicable licensing and registration requirements under the 152
	203	+	general statutes; and 153
	204	+	(3) Partner or contract with contractors or subcontractors to carry out 154
	205	+	projects and related work for the purposes set forth in subsection (c) of 155
	206	+	this section, provided the corporation shall give primary priority to a 156
	207	+	contractor or subcontractor located in the community impact zone in 157
	208	+	which the corporation is located and secondary priority to a contractor 158
	209	+	or subcontractor located in the municipality in which the corporation is 159
	210	+	located. 160
	211	+	(e) Not later than six months after being designated as a community 161
	212	+	development corporation, such corporation shall (1) identify a 162
	213	+	Connecticut credit union located within the municipality in which such 163
	214	+	corporation is located that will apply to the community development 164
	215	+	corporation oversight council for designation as a community 165
	216	+	development credit union pursuant to section 2 of this act, or (2) issue a 166
	217	+	request for proposal for the organization of a new Connecticut credit 167
	218	+	union to partner with, or for an existing Connecticut credit union to 168
	219	+	partner with, such corporation. 169
	220	+	(f) Notwithstanding the provisions of chapter 846 of the general 170
	221	+	statutes or section 12-157 of the general statutes, a community 171
	222	+	development corporation shall be offered the right of first refusal in the 172 Raised Bill No. 1104
222	223
223	224
224		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
225		-	R01-SB.docx }
226		-	7 of 33
227	225
228		-	public auction and is located in the community impact zone in which 175
229		-	such corporation is located, provided such corporation has timely 176
230		-	notified the mortgagee or the town tax collector, as applicable, of such 177
231		-	corporation's interest in acquiring such property. 178
232		-	(g) Each community development corporation shall submit a 179
233		-	financial report to the community development corporation oversight 180
234		-	council, on such frequency as the council shall require but at least 181
235		-	annually, and include such information as the council requires. 182
236		-	(h) (1) A community development corporation may request that its 183
237		-	designation be removed. The community development corporation 184
238		-	oversight council may grant such request, provided the council 185
239		-	designates, from prior submitted applications or through a new request 186
240		-	for application submissions, another entity to replace such corporation. 187
241		-	(2) The council may remove the designation of any community 188
242		-	development corporation that the council determines is unable to or is 189
243		-	deficient in carrying out the purposes of this section, provided the 190
244		-	corporation has been afforded an opportunity to address and improve 191
245		-	any deficiencies noted by the council. 192
246		-	Sec. 2. (NEW) (Effective from passage) (a) There are established 193
247		-	community development credit unions, which shall partner with 194
248		-	community development corporations, established under section 1 of 195
249		-	this act, to further the community restoration and revitalization 196
250		-	purposes set forth in this section and section 1 of this act. 197
251		-	(b) (1) Any Connecticut credit union organized under chapter 667 of 198
252		-	the general statutes and in compliance with the provisions of said 199
253		-	chapter or any Connecticut credit union service organization, as defined 200
254		-	in section 36a-2 of the general statutes, may apply to the community 201
255		-	development corporation oversight council established under section 3 202
256		-	of this act to be designated as a community development credit union. 203
257		-	(2) To be designated as a community development credit union, a 204
258		-	Connecticut credit union or Connecticut credit union service 205 Substitute Bill No. 1104
	226	+	LCO No. 6689 7 of 33
	227	+
	228	+	sale of any real property that has been foreclosed or is being sold at 173
	229	+	public auction and is located in the community impact zone in which 174
	230	+	such corporation is located, provided such corporation has timely 175
	231	+	notified the mortgagee or the town tax collector, as applicable, of such 176
	232	+	corporation's interest in acquiring such property. 177
	233	+	(g) Each community development corporation shall submit a 178
	234	+	financial report to the community development corporation oversight 179
	235	+	council, on such frequency as the council shall require but at least 180
	236	+	annually, and include such information as the council requires. 181
	237	+	(h) (1) A community development corporation may request that its 182
	238	+	designation be removed. The community development corporation 183
	239	+	oversight council may grant such request, provided the council 184
	240	+	designates, from prior submitted applications or through a new request 185
	241	+	for application submissions, another entity to replace such corporation. 186
	242	+	(2) The council may remove the designation of any community 187
	243	+	development corporation that the council determines is unable to or is 188
	244	+	deficient in carrying out the purposes of this section, provided the 189
	245	+	corporation has been afforded an opportunity to address and improve 190
	246	+	any deficiencies noted by the council. 191
	247	+	Sec. 2. (NEW) (Effective from passage) (a) There are established 192
	248	+	community development credit unions, which shall partner with 193
	249	+	community development corporations, established under section 1 of 194
	250	+	this act, to further the community restoration and revitalization 195
	251	+	purposes set forth in this section and section 1 of this act. 196
	252	+	(b) (1) Any Connecticut credit union organized under chapter 667 of 197
	253	+	the general statutes and in compliance with the provisions of said 198
	254	+	chapter or any Connecticut credit union service organization, as defined 199
	255	+	in section 36a-2 of the general statutes, may apply to the community 200
	256	+	development corporation oversight council established under section 3 201
	257	+	of this act to be designated as a community development credit union. 202
	258	+	(2) To be designated as a community development credit union, a 203 Raised Bill No. 1104
259	259
260	260
261		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
262		-	R01-SB.docx }
263		-	8 of 33
264	261
265		-	organization shall: 206
266		-	(A) Serve low-income and moderate-income individuals and 207
267		-	communities that have limited access to affordable financial services 208
268		-	and products, with priority given to credit unions that specialize in (i) 209
269		-	providing home mortgages or small business loans to members with 210
270		-	imperfect, limited or no credit history, (ii) providing financial education 211
271		-	and counseling to its members, and (iii) offering products, services and 212
272		-	support at a low or reasonable cost to its members; and 213
273		-	(B) Agree to partner with or be partnered with at least one 214
274		-	community development corporation and focus its activities and efforts 215
275		-	to support such corporation's purposes set forth in section 1 of this act. 216
276		-	(c) Each community development credit union shall: 217
277		-	(1) Submit its governance structure to the community development 218
278		-	corporation oversight council for review and approve the addition of 219
279		-	representatives of its partnered community development corporation to 220
280		-	its governing board, executive committee or supervisory committee or 221
281		-	similar board or committee, in such numbers and as agreed to by such 222
282		-	credit union and corporation; 223
283		-	(2) If applicable and necessary, expand its field of membership in 224
284		-	accordance with section 36a-438a of the general statutes, to allow all 225
285		-	residents of all community impact zones within the municipality in 226
286		-	which its partnered community development corporation is located, to 227
287		-	be members of such credit union; 228
288		-	(3) Offer or agree to offer free or low-cost basic checking and savings 229
289		-	account services to all residents of the community impact zone in which 230
290		-	its partnered community development corporation is located; 231
291		-	(4) Agree to establish, or relocate to, a location in the community 232
292		-	impact zone in which its partnered community development 233
293		-	corporation is located after such zones are designated pursuant to 234
294		-	section 3 of this act. Such credit union shall not be precluded from 235 Substitute Bill No. 1104
	262	+	LCO No. 6689 8 of 33
	263	+
	264	+	Connecticut credit union or Connecticut credit union service 204
	265	+	organization shall: 205
	266	+	(A) Serve low-income and moderate-income individuals and 206
	267	+	communities that have limited access to affordable financial services 207
	268	+	and products, with priority given to credit unions that specialize in (i) 208
	269	+	providing home mortgages or small business loans to members with 209
	270	+	imperfect, limited or no credit history, (ii) providing financial education 210
	271	+	and counseling to its members, and (iii) offering products, services and 211
	272	+	support at a low or reasonable cost to its members; and 212
	273	+	(B) Agree to partner with or be partnered with at least one 213
	274	+	community development corporation and focus its activities and efforts 214
	275	+	to support such corporation's purposes set forth in section 1 of this act. 215
	276	+	(c) Each community development credit union shall: 216
	277	+	(1) Submit its governance structure to the community development 217
	278	+	corporation oversight council for review and approve the addition of 218
	279	+	representatives of its partnered community development corporation to 219
	280	+	its governing board, executive committee or supervisory committee or 220
	281	+	similar board or committee, in such numbers and as agreed to by such 221
	282	+	credit union and corporation; 222
	283	+	(2) If applicable and necessary, expand its field of membership in 223
	284	+	accordance with section 36a-438a of the general statutes, to allow all 224
	285	+	residents of all community impact zones within the municipality in 225
	286	+	which its partnered community development corporation is located, to 226
	287	+	be members of such credit union; 227
	288	+	(3) Offer or agree to offer free or low-cost basic checking and savings 228
	289	+	account services to all residents of the community impact zone in which 229
	290	+	its partnered community development corporation is located; 230
	291	+	(4) Agree to establish or relocate a location in the community impact 231
	292	+	zone in which its partnered community development corporation is 232
	293	+	located after such zones are designated pursuant to section 3 of this act. 233 Raised Bill No. 1104
295	294
296	295
297		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
298		-	R01-SB.docx }
299		-	9 of 33
300	296
301		-	establishing or having locations elsewhere in the state or establishing or 236
302		-	having multiple locations within the municipality in which the 237
303		-	community impact zone is located; and 238
304		-	(5) Develop and issue, in consultation with its partnered community 239
305		-	development corporation, social impact bonds to support or 240
306		-	supplement the efforts of such corporation. Such bonds shall be 241
307		-	designed to maximize tax benefits to investors, where the community 242
308		-	impact zone in which such corporation is located aligns with federally 243
309		-	designated opportunity zones. 244
310		-	(d) A community development credit union may: 245
311		-	(1) Develop low-cost or subsidized financial products and services to 246
312		-	support the community development goals of its partnered community 247
313		-	development corporation and apply to the community development 248
314		-	corporation oversight council for funding for such purpose; and 249
315		-	(2) Collaborate with its partnered community development 250
316		-	corporation to help finance or facilitate investments in real property or 251
317		-	community structures and assets pursuant to section 1 of this act. 252
318		-	(e) Each community development credit union shall submit a 253
319		-	financial report to the community development corporation oversight 254
320		-	council, on such frequency as the council shall require but at least 255
321		-	annually, and include such information as the council requires. 256
322		-	(f) (1) A community development credit union may request that its 257
323		-	designation be removed and that it no longer be partnered with its 258
324		-	community development corporation. The community development 259
325		-	corporation oversight council may grant such request, provided such 260
326		-	corporation identifies another Connecticut credit union or Connecticut 261
327		-	credit union service organization to replace such credit union or issues 262
328		-	a request for proposal for the organization of a new Connecticut credit 263
329		-	union or Connecticut credit union service organization with which to 264
330		-	partner. 265 Substitute Bill No. 1104
	297	+	LCO No. 6689 9 of 33
	298	+
	299	+	Such credit union shall not be precluded from establishing or having 234
	300	+	locations elsewhere in the state or establishing or having multiple 235
	301	+	locations within the municipality in which the community impact zone 236
	302	+	is located; and 237
	303	+	(5) Develop and issue, in consultation with its partnered community 238
	304	+	development corporation, social impact bonds to support or 239
	305	+	supplement the efforts of such corporation. Such bonds shall be 240
	306	+	designed to maximize tax benefits to investors, where the community 241
	307	+	impact zone in which such corporation is located aligns with federal 242
	308	+	qualified opportunity zones. 243
	309	+	(d) A community development credit union may: 244
	310	+	(1) Develop low-cost or subsidized financial products and services to 245
	311	+	support the community development goals of its partnered community 246
	312	+	development corporation and apply to the community development 247
	313	+	corporation oversight council for funding for such purpose; and 248
	314	+	(2) Collaborate with its partnered community development 249
	315	+	corporation to help finance or facilitate investments in real property or 250
	316	+	community structures and assets pursuant to section 1 of this act. 251
	317	+	(e) Each community development credit union shall submit a 252
	318	+	financial report to the community development corporation oversight 253
	319	+	council, on such frequency as the council shall require but at least 254
	320	+	annually, and include such information as the council requires. 255
	321	+	(f) (1) A community development credit union may request that its 256
	322	+	designation be removed and that it no longer be partnered with its 257
	323	+	community development corporation. The community development 258
	324	+	corporation oversight council may grant such request, provided such 259
	325	+	corporation identifies another Connecticut credit union or Connecticut 260
	326	+	credit union service organization to replace such credit union or issues 261
	327	+	a request for proposal for the organization of a new Connecticut credit 262
	328	+	union or Connecticut credit union service organization with which to 263
	329	+	partner. 264 Raised Bill No. 1104
331	330
332	331
333		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
334		-	R01-SB.docx }
335		-	10 of 33
336	332
337		-	(2) The council may remove the designation of any community 266
338		-	development credit union that the council determines is unable to or is 267
339		-	deficient in carrying out the purposes of this section, provided the credit 268
340		-	union has been afforded an opportunity to address and improve any 269
341		-	deficiencies noted by the council. 270
342		-	Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 271
343		-	"municipality" means any town, city or borough, consolidated town and 272
344		-	city or consolidated town and borough and "distressed municipality" 273
345		-	has the same meaning as provided in section 32-9p of the general 274
346		-	statutes. 275
347		-	(b) (1) There is established a community development corporation 276
348		-	oversight council, which shall be part of the Legislative Department. 277
349		-	The council shall consist of the following members: (A) The Treasurer; 278
350		-	(B) the Commissioner of Economic and Community Development; (C) 279
351		-	the executive director of the Commission on Women, Children, Seniors, 280
352		-	Equity and Opportunity, established pursuant to section 2-127 of the 281
353		-	general statutes; and (D) four members appointed by the Governor. In 282
354		-	making the appointments under subparagraph (D) of this subdivision, 283
355		-	the Governor shall seek to appoint individuals who have broad 284
356		-	community knowledge and experience with communities within the 285
357		-	eligible census tracts selected by the Secretary of the Office of Policy and 286
358		-	Management pursuant to subsection (f) of this section and are reflective 287
359		-	of the ethnic, gender and economic diversity of such communities. All 288
360		-	appointments to the council shall be made on or after August 1, 2021, 289
361		-	but not later than August 31, 2021. 290
362		-	(2) The Treasurer and the Commissioner of Economic and 291
363		-	Community Development shall serve as cochairpersons of the council 292
364		-	and shall jointly schedule the first meeting of the council, which shall be 293
365		-	held not later than September 1, 2021. On and after January 1, 2022, the 294
366		-	council shall meet not fewer than six times each year. A majority of the 295
367		-	council shall constitute a quorum for the transaction of any business. 296
368		-	(3) Any vacancy shall be filled by the appointing authority. Any 297 Substitute Bill No. 1104
	333	+	LCO No. 6689 10 of 33
	334	+
	335	+	(2) The council may remove the designation of any community 265
	336	+	development credit union that the council determines is unable to or is 266
	337	+	deficient in carrying out the purposes of this section, provided the credit 267
	338	+	union has been afforded an opportunity to address and improve any 268
	339	+	deficiencies noted by the council. 269
	340	+	Sec. 3. (NEW) (Effective from passage) (a) As used in this section, 270
	341	+	"municipality" means any town, city or borough, consolidated town and 271
	342	+	city or consolidated town and borough and "distressed municipality" 272
	343	+	has the same meaning as provided in section 32-9p of the general 273
	344	+	statutes. 274
	345	+	(b) (1) There is established a community development corporation 275
	346	+	oversight council, which shall be part of the Legislative Department. 276
	347	+	The council shall consist of the following members: (A) The Treasurer; 277
	348	+	(B) the Commissioner of Economic and Community Development; (C) 278
	349	+	the executive director of the Commission on Equity and Opportunity, 279
	350	+	established pursuant to section 2-127 of the general statutes; and (D) 280
	351	+	four members appointed by the Governor. In making the appointments 281
	352	+	under subparagraph (D) of this subdivision, the Governor shall seek to 282
	353	+	appoint individuals who have broad community knowledge and 283
	354	+	experience with communities within the eligible census tracts selected 284
	355	+	by the Secretary of the Office of Policy and Management pursuant to 285
	356	+	subsection (f) of this section and are reflective of the ethnic, gender and 286
	357	+	economic diversity of such communities. All appointments to the 287
	358	+	council shall be made on or after August 1, 2021, but not later than 288
	359	+	August 31, 2021. 289
	360	+	(2) The Treasurer and the Commissioner of Economic and 290
	361	+	Community Development shall serve as cochairpersons of the council 291
	362	+	and shall jointly schedule the first meeting of the council, which shall be 292
	363	+	held not later than September 1, 2021. On and after January 1, 2022, the 293
	364	+	council shall meet not fewer than six times each year. A majority of the 294
	365	+	council shall constitute a quorum for the transaction of any business. 295
	366	+	(3) Any vacancy shall be filled by the appointing authority. Any 296 Raised Bill No. 1104
369	367
370	368
371		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
372		-	R01-SB.docx }
373		-	11 of 33
374	369
375		-	vacancy occurring other than by expiration of term shall be filled for the 298
376		-	balance of the unexpired term. 299
377		-	(4) The members of the council shall serve without compensation, but 300
378		-	shall, within the limits of available funds, be reimbursed for expenses 301
379		-	necessarily incurred in the performance of their duties. 302
380		-	(5) The administrative staff of the joint standing committee of the 303
381		-	General Assembly having cognizance of matters relating to economic 304
382		-	development shall serve as administrative staff of the council. 305
383		-	(c) The council shall: 306
384		-	(1) Establish criteria for designation as a community development 307
385		-	corporation, community development credit union and community 308
386		-	impact zone and designate such corporations, credit unions and zones 309
387		-	in accordance with the provisions of this section and sections 1 and 2 of 310
388		-	this act; 311
389		-	(2) Establish an annual budget in accordance with the provisions of 312
390		-	this section; 313
391		-	(3) Oversee the investments of, deposits in and disbursements from 314
392		-	the Community Development Corporation Trust Fund established 315
393		-	under section 4 of this act; 316
394		-	(4) Approve the programs, services and activities of and efforts 317
395		-	undertaken by community development corporations and community 318
396		-	development credit unions to further the purposes of this section and 319
397		-	sections 1 and 2 of this act; 320
398		-	(5) Oversee, support and coordinate the programs, services and 321
399		-	activities of and efforts undertaken by community development 322
400		-	corporations and community development credit unions under sections 323
401		-	1 and 2 of this act, within and across municipalities and with other 324
402		-	relevant state agencies, entities and initiatives; 325 Substitute Bill No. 1104
	370	+	LCO No. 6689 11 of 33
	371	+
	372	+	vacancy occurring other than by expiration of term shall be filled for the 297
	373	+	balance of the unexpired term. 298
	374	+	(4) The members of the council shall serve without compensation, but 299
	375	+	shall, within the limits of available funds, be reimbursed for expenses 300
	376	+	necessarily incurred in the performance of their duties. 301
	377	+	(5) The administrative staff of the joint standing committee of the 302
	378	+	General Assembly having cognizance of matters relating to economic 303
	379	+	development shall serve as administrative staff of the council. 304
	380	+	(c) The council shall: 305
	381	+	(1) Establish criteria for designation as a community development 306
	382	+	corporation, community development credit union and community 307
	383	+	impact zone and designate such corporations, credit unions and zones 308
	384	+	in accordance with the provisions of this section and sections 1 and 2 of 309
	385	+	this act; 310
	386	+	(2) Establish an annual budget in accordance with the provisions of 311
	387	+	this section; 312
	388	+	(3) Oversee the investments of, deposits in and disbursements from 313
	389	+	the Community Development Corporation Trust Fund established 314
	390	+	under section 4 of this act; 315
	391	+	(4) Approve the programs, services and activities of and efforts 316
	392	+	undertaken by community development corporations and community 317
	393	+	development credit unions to further the purposes of this section and 318
	394	+	sections 1 and 2 of this act; 319
	395	+	(5) Oversee, support and coordinate the programs, services and 320
	396	+	activities of and efforts undertaken by community development 321
	397	+	corporations and community development credit unions under sections 322
	398	+	1 and 2 of this act, within and across municipalities and with other 323
	399	+	relevant state agencies, entities and initiatives; 324
	400	+	(6) Advise community development corporations, community 325 Raised Bill No. 1104
403	401
404	402
405		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
406		-	R01-SB.docx }
407		-	12 of 33
408	403
409		-	(6) Advise community development corporations, community 326
410		-	development credit unions, state agencies and other entities with 327
411		-	respect to the core purposes of community development corporations 328
412		-	and community development credit unions; 329
413		-	(7) Review the disbursement of funds to, and contracts entered into 330
414		-	by, community development corporations and community 331
415		-	development credit unions, to evaluate the impact and effectiveness of 332
416		-	such disbursements and ensure that decisions made by such 333
417		-	corporations and credit unions regarding services or grants provided or 334
418		-	other financial instruments issued are based solely on the purposes set 335
419		-	forth in sections 1 and 2 of this act; 336
420		-	(8) Review the reports submitted to the council by community 337
421		-	development corporations and community development credit unions; 338
422		-	and 339
423		-	(9) Do all things necessary to carry out its duties and responsibilities 340
424		-	under sections 1 to 4, inclusive, of this act. 341
425		-	(d) The council shall designate community development credit 342
426		-	unions from among applicants that fulfill the requirements set forth in 343
427		-	subsection (b) of section 2 of this act. The council may designate only 344
428		-	one community development credit union for each municipality. 345
429		-	(e) The council shall designate community development corporations 346
430		-	in accordance with the provisions of this subsection. 347
431		-	(1) Not later than October 1, 2021, the council shall release its criteria 348
432		-	for prospective applicants seeking designation as a community 349
433		-	development corporation. In addition to the requirements set forth in 350
434		-	section 1 of this act, such criteria shall take into consideration the goals, 351
435		-	purposes and requirements set forth in said section and shall include, 352
436		-	but not be limited to, (A) whether the applicant has broad community 353
437		-	representation in its leadership and governance, with an emphasis on 354
438		-	ethnic and economic diversity reflective of the municipality in which the 355
439		-	applicant is located, and (B) the professional competence and relevant 356 Substitute Bill No. 1104
	404	+	LCO No. 6689 12 of 33
	405	+
	406	+	development credit unions, state agencies and other entities with 326
	407	+	respect to the core purposes of community development corporations 327
	408	+	and community development credit unions; 328
	409	+	(7) Review the disbursement of funds to, and contracts entered into 329
	410	+	by, community development corporations and community 330
	411	+	development credit unions, to evaluate the impact and effectiveness of 331
	412	+	such disbursements and ensure that decisions made by such 332
	413	+	corporations and credit unions regarding services or grants provided or 333
	414	+	other financial instruments issued are based solely on the purposes set 334
	415	+	forth in sections 1 and 2 of this act; 335
	416	+	(8) Review the reports submitted to the council by community 336
	417	+	development corporations and community development credit unions; 337
	418	+	and 338
	419	+	(9) Do all things necessary to carry out its duties and responsibilities 339
	420	+	under sections 1 to 4, inclusive, of this act. 340
	421	+	(d) The council shall designate community development credit 341
	422	+	unions from among applicants that fulfill the requirements set forth in 342
	423	+	subsection (b) of section 2 of this act. The council may designate only 343
	424	+	one community development credit union for each municipality. 344
	425	+	(e) The council shall designate community development corporations 345
	426	+	in accordance with the provisions of this subsection. 346
	427	+	(1) Not later than October 1, 2021, the council shall release its criteria 347
	428	+	for prospective applicants seeking designation as a community 348
	429	+	development corporation. In addition to the requirements set forth in 349
	430	+	section 1 of this act, such criteria shall take into consideration the goals, 350
	431	+	purposes and requirements set forth in said section and shall include, 351
	432	+	but not be limited to, (A) whether the applicant has broad community 352
	433	+	representation in its leadership and governance, with an emphasis on 353
	434	+	ethnic and economic diversity reflective of the municipality in which the 354
	435	+	applicant is located, and (B) the professional competence and relevant 355
	436	+	experience of the applicant's management and staff. Each applicant shall 356 Raised Bill No. 1104
440	437
441	438
442		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
443		-	R01-SB.docx }
444		-	13 of 33
445	439
446		-	experience of the applicant's management and staff. Each applicant shall 357
447		-	include (i) a letter of support from the chief elected official of the 358
448		-	municipality in which the applicant is located, and (ii) a statement that 359
449		-	the applicant agrees to locate its office in a community impact zone once 360
450		-	such zones are designated. The council shall accept applications on or 361
451		-	after October 1, 2021, until and including January 31, 2022. 362
452		-	(2) Not later than March 1, 2022, the council shall announce its 363
453		-	selections for designated community development corporations. The 364
454		-	council may designate only one community development corporation 365
455		-	for each municipality. 366
456		-	(f) The Secretary of the Office of Policy and Management shall select 367
457		-	eligible census tracts and the council shall designate community impact 368
458		-	zones, in accordance with the provisions of this subsection. 369
459		-	(1) The secretary shall select census tracts within distressed 370
460		-	municipalities that will be eligible to have a community impact zone or 371
461		-	zones designated within such tract. The secretary shall consider, but 372
462		-	need not be limited to, the following metrics for each census tract: (A) 373
463		-	The educational level attained by the population, specifically the 374
464		-	percentage of the population attaining an associate degree or a 375
465		-	bachelor's degree; (B) the most recent third grade scores on the state-376
466		-	wide mastery examination under section 10-14n of the general statutes 377
467		-	for reading; (C) the most recent third grade scores on the state-wide 378
468		-	mastery examination under section 10-14n of the general statutes for 379
469		-	mathematics; (D) the unemployment rate; (E) the state of the local 380
470		-	economy, employment availability and access and diversity of jobs; (F) 381
471		-	the percentage of the population receiving public assistance; (G) the 382
472		-	percentage of the population below the federal poverty level; (H) the 383
473		-	rate of home ownership; (I) the percentage of vacant housing; and (J) 384
474		-	crime rates. 385
475		-	(2) Not later than August 1, 2021, the secretary shall release the census 386
476		-	tracts that are eligible for consideration, based on a demonstration of the 387
477		-	greatest socio-economic need as indicated by subparagraphs (A) to (J), 388 Substitute Bill No. 1104
	440	+	LCO No. 6689 13 of 33
	441	+
	442	+	include (i) a letter of support from the chief elected official of the 357
	443	+	municipality in which the applicant is located, and (ii) a statement that 358
	444	+	the applicant agrees to locate its office in a community impact zone once 359
	445	+	such zones are designated. The council shall accept applications on or 360
	446	+	after October 1, 2021, until and including January 31, 2022. 361
	447	+	(2) Not later than March 1, 2022, the council shall announce its 362
	448	+	selections for designated community development corporations. The 363
	449	+	council may designate only one community development corporation 364
	450	+	for each municipality. 365
	451	+	(f) The Secretary of the Office of Policy and Management shall select 366
	452	+	eligible census tracts and the council shall designate community impact 367
	453	+	zones, in accordance with the provisions of this subsection. 368
	454	+	(1) The secretary shall select census tracts within distressed 369
	455	+	municipalities that will be eligible to have a community impact zone or 370
	456	+	zones designated within such tract. The secretary shall consider, but 371
	457	+	need not be limited to, the following metrics for each census tract: (A) 372
	458	+	The educational level attained by the population, specifically the 373
	459	+	percentage of the population attaining an associate degree or a 374
	460	+	bachelor's degree; (B) the most recent third grade scores on the state-375
	461	+	wide mastery examination under section 10-14n of the general statutes 376
	462	+	for reading; (C) the most recent third grade scores on the state-wide 377
	463	+	mastery examination under section 10-14n of the general statutes for 378
	464	+	mathematics; (D) the unemployment rate; (E) the state of the local 379
	465	+	economy, employment availability and access and diversity of jobs; (F) 380
	466	+	the percentage of the population receiving public assistance; (G) the 381
	467	+	percentage of the population below the federal poverty level; (H) the 382
	468	+	rate of home ownership; (I) the percentage of vacant housing; and (J) 383
	469	+	crime rates. 384
	470	+	(2) Not later than August 1, 2021, the secretary shall release the census 385
	471	+	tracts that are eligible for consideration, based on a demonstration of the 386
	472	+	greatest socio-economic need as indicated by subparagraphs (A) to (J), 387
	473	+	inclusive, of subdivision (1) of this subsection. The secretary shall also 388 Raised Bill No. 1104
478	474
479	475
480		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
481		-	R01-SB.docx }
482		-	14 of 33
483	476
484		-	inclusive, of subdivision (1) of this subsection. The secretary shall also 389
485		-	release the criteria for determining an area within any such tract to be 390
486		-	designated as a community impact zone. Such criteria shall take into 391
487		-	consideration the goals, purposes and requirements set forth in section 392
488		-	1 of this act and may give weight to one or more of the following: (A) 393
489		-	The existence of a public elementary school within the area; (B) the 394
490		-	existence of an early childhood center within the area; (C) the existence 395
491		-	of a community center serving children or seniors, or both, within the 396
492		-	area; (D) the existence of a local community organization comprised of 397
493		-	residents and leaders within the area, which organization's role is 398
494		-	complementary to the goals, purposes and requirements set forth in 399
495		-	section 1 of this act; (E) the proximity of the area to existing or planned 400
496		-	public transportation; and (F) existing access to an asset-based housing 401
497		-	organization that focuses on home ownership and financial literacy. 402
498		-	(3) Not later than June 1, 2022, each community development 403
499		-	corporation shall submit a proposal to the council for not more than two 404
500		-	geographically distinct areas within an eligible census tract in which the 405
501		-	corporation is located to be designated as a community impact zone. 406
502		-	(4) Not later than August 1, 2022, the council shall announce its 407
503		-	selections for designated community impact zones. The council may 408
504		-	designate one community impact zone for a municipality with a 409
505		-	population of one hundred thousand or less and two community impact 410
506		-	zones for a municipality with a population of greater than one hundred 411
507		-	thousand. If the council rejects a proposal or does not designate an area 412
508		-	that a community development corporation proposed, the council may 413
509		-	allow such corporation to resubmit a proposal if a community impact 414
510		-	zone has not been otherwise designated. 415
511		-	(5) Not later than February 1, 2023, or as soon as practicable following 416
512		-	the designations of community impact zones, each community 417
513		-	development corporation shall establish an office or relocate its office 418
514		-	within such zone. 419
515		-	(g) The council shall establish an annual budget that sets forth the 420 Substitute Bill No. 1104
	477	+	LCO No. 6689 14 of 33
	478	+
	479	+	release the criteria for determining an area within such tract to be 389
	480	+	designated as a community impact zone. Such criteria shall take into 390
	481	+	consideration the goals, purposes and requirements set forth in section 391
	482	+	1 of this act and may give weight to one or more of the following: (A) 392
	483	+	The existence of a public elementary school within the area; (B) the 393
	484	+	existence of an early childhood center within the area; (C) the existence 394
	485	+	of a community center serving children or seniors, or both, within the 395
	486	+	area; (D) the existence of a local community organization comprised of 396
	487	+	residents and leaders within the area, which organization's role is 397
	488	+	complementary to the goals, purposes and requirements set forth in 398
	489	+	section 1 of this act; (E) the proximity of the area to existing or planned 399
	490	+	public transportation; and (F) existing access to an asset-based housing 400
	491	+	organization that focuses on home ownership and financial literacy. 401
	492	+	(3) Not later than June 1, 2022, each community development 402
	493	+	corporation shall submit a proposal to the council for not more than two 403
	494	+	geographically distinct areas within an eligible census tract in which the 404
	495	+	corporation is located to be designated as a community impact zone. 405
	496	+	(4) Not later than August 1, 2022, the council shall announce its 406
	497	+	selections for designated community impact zones. The council may 407
	498	+	designate one community impact zone for a municipality with a 408
	499	+	population of one hundred thousand or less and two community impact 409
	500	+	zones for a municipality with a population of greater than one hundred 410
	501	+	thousand. If the council rejects a proposal or does not designate an area 411
	502	+	that a community development corporation proposed, the council may 412
	503	+	allow such corporation to resubmit a proposal if a community impact 413
	504	+	zone has not been otherwise designated. 414
	505	+	(5) Not later than February 1, 2023, or as soon as practicable following 415
	506	+	the designations of community impact zones, each community 416
	507	+	development corporation shall establish an office or relocate its office 417
	508	+	within such zone. 418
	509	+	(g) The council shall establish an annual budget that sets forth the 419
	510	+	amounts in the Community Development Corporation Trust Fund to be 420 Raised Bill No. 1104
516	511
517	512
518		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
519		-	R01-SB.docx }
520		-	15 of 33
521	513
522		-	amounts in the Community Development Corporation Trust Fund to be 421
523		-	invested, the amounts in the fund to be disbursed for programs, 422
524		-	services, activities and expenses for the purposes of sections 1 and 2 of 423
525		-	this act and the amount to be set aside for the purposes of subsections 424
526		-	(h) and (i) of this section. The council, in consultation with the Treasurer 425
527		-	and the chief executive officer of the Connecticut Green Bank 426
528		-	established under section 16-245n of the general statutes, shall adopt an 427
529		-	investment plan with the goals of yielding investment returns over the 428
530		-	long-term to support the programs, services, activities and efforts for the 429
531		-	purposes of sections 1 and 2 of this act and supporting a substantial 430
532		-	portion of the fund's annual expenditures from the investment returns. 431
533		-	The initial investment plan shall set forth an investment strategy for not 432
534		-	less than twenty years and the council may revise such plan from time 433
535		-	to time by affirmative vote. The council shall annually review such plan 434
536		-	and the investment returns generated and shall adjust the amount of 435
537		-	moneys to be invested and disbursed each year accordingly. 436
538		-	(h) (1) The council shall set aside an amount in its annual budget 437
539		-	equal to the amount appropriated in the state budget act for the 438
540		-	intensive reading instruction program established under section 10-14u 439
541		-	of the general statutes, provided such amount set aside shall not exceed 440
542		-	three million dollars each year. The amount to be set aside under this 441
543		-	subsection may be reduced if there are insufficient moneys in the fund 442
544		-	to provide for the purposes set forth in sections 1 and 2 of this act and 443
545		-	for the entire amount of the set-aside specified under this subdivision. 444
546		-	(2) The council shall make such moneys available for the 445
547		-	implementation or support of said reading instruction program or any 446
548		-	state-wide early literacy initiative developed and implemented by the 447
549		-	Department of Education, regardless of whether such program or 448
550		-	initiative is related to a community impact zone or is eligible for other 449
551		-	community development corporation or community development 450
552		-	credit union programs or other grants or funding. The moneys made 451
553		-	available pursuant to this subdivision shall supplement existing or other 452
554		-	available grants or funding. The council shall establish forms and 453 Substitute Bill No. 1104
	514	+	LCO No. 6689 15 of 33
	515	+
	516	+	invested, the amounts in the fund to be disbursed for programs, 421
	517	+	services, activities and expenses for the purposes of sections 1 and 2 of 422
	518	+	this act and the amount to be set aside for the purposes of subsections 423
	519	+	(h) and (i) of this section. The council, in consultation with the Treasurer 424
	520	+	and the chief executive officer of the Connecticut Green Bank 425
	521	+	established under section 16-245n of the general statutes, shall adopt an 426
	522	+	investment plan with the goals of yielding investment returns over the 427
	523	+	long-term to support the programs, services, activities and efforts for the 428
	524	+	purposes of sections 1 and 2 of this act and supporting a substantial 429
	525	+	portion of the fund's annual expenditures from the investment returns. 430
	526	+	The initial investment plan shall set forth an investment strategy for not 431
	527	+	less than twenty years and the council may revise such plan from time 432
	528	+	to time by affirmative vote. The council shall annually review such plan 433
	529	+	and the investment returns generated and shall adjust the amount of 434
	530	+	moneys to be invested and disbursed each year accordingly. 435
	531	+	(h) (1) The council shall set aside an amount in its annual budget 436
	532	+	equal to the amount appropriated in the state budget act for the 437
	533	+	intensive reading instruction program established under section 10-14u 438
	534	+	of the general statutes, provided such amount set aside shall not exceed 439
	535	+	three million dollars each year. The amount to be set aside under this 440
	536	+	subsection may be reduced if there are insufficient moneys in the fund 441
	537	+	to provide for the purposes set forth in sections 1 and 2 of this act and 442
	538	+	for the entire amount of the set-aside specified under this subdivision. 443
	539	+	(2) The council shall make such moneys available for the 444
	540	+	implementation or support of said reading instruction program or any 445
	541	+	state-wide early literacy initiative developed and implemented by the 446
	542	+	Department of Education, regardless of whether such program or 447
	543	+	initiative is related to a community impact zone or is eligible for other 448
	544	+	community development corporation or community development 449
	545	+	credit union programs or other grants or funding. The moneys made 450
	546	+	available pursuant to this subdivision shall supplement existing or other 451
	547	+	available grants or funding. The council shall establish forms and 452
	548	+	criteria to apply for such moneys and shall give primary priority to 453
	549	+	applications from schools located in a community impact zone, 454 Raised Bill No. 1104
555	550
556	551
557		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
558		-	R01-SB.docx }
559		-	16 of 33
560	552
561		-	criteria to apply for such moneys and shall give primary priority to 454
562		-	applications from schools located in a community impact zone, 455
563		-	provided all such schools submit an application. Any moneys awarded 456
564		-	to such schools shall be distributed on a zone-wide basis to be used 457
565		-	solely for the purpose of making said reading instruction program 458
566		-	available to all students reading below proficiency level who reside or 459
567		-	attend school within the community impact zone. The council shall give 460
568		-	secondary priority to applications from schools located in a distressed 461
569		-	municipality on the basis of the level of student reading achievement, as 462
570		-	determined by the Commissioner of Education. 463
571		-	(i) The council shall set aside an amount in its annual budget, to be 464
572		-	determined by the council, to provide financial assistance to health care 465
573		-	providers and facilities that provide mental health or substance use 466
574		-	disorder treatment services in any municipality. The council shall 467
575		-	establish eligibility requirements for such financial assistance and 468
576		-	publicize the availability of such financial assistance to the relevant 469
577		-	community. 470
578		-	(j) The council shall develop a proposal to allow social impact bonds 471
579		-	to be issued by the state to support public schools located in community 472
580		-	impact zones. Not later than February 1, 2022, the Secretary of the Office 473
581		-	of Policy and Management shall submit a report, in accordance with the 474
582		-	provisions of section 11-4a of the general statutes, to the General 475
583		-	Assembly, setting forth the proposal and including recommendations 476
584		-	on ways to leverage the federal opportunity zones program to support 477
585		-	such public schools. 478
586		-	(k) (1) The council may cause to have conducted an external, 479
587		-	independent audit of any community development corporation or 480
588		-	community development credit union. 481
589		-	(2) The council may request the Auditors of Public Accounts to 482
590		-	perform, and said auditors shall perform, audits and other related 483
591		-	evaluations to facilitate the council's responsibilities established under 484
592		-	sections 1 to 4, inclusive, of this act. 485 Substitute Bill No. 1104
	553	+	LCO No. 6689 16 of 33
	554	+
	555	+	provided all such schools submit an application. Any moneys awarded 455
	556	+	to such schools shall be distributed on a zone-wide basis to be used 456
	557	+	solely for the purpose of making said reading instruction program 457
	558	+	available to all students reading below proficiency level who reside or 458
	559	+	attend school within the community impact zone. The council shall give 459
	560	+	secondary priority to applications from schools located in a distressed 460
	561	+	municipality on the basis of the level of student reading achievement, as 461
	562	+	determined by the Commissioner of Education. 462
	563	+	(i) The council shall set aside an amount in its annual budget, to be 463
	564	+	determined by the council, to provide financial assistance to health care 464
	565	+	providers and facilities that provide mental health or substance use 465
	566	+	disorder treatment services in any municipality. The council shall 466
	567	+	establish eligibility requirements for such financial assistance and 467
	568	+	publicize the availability of such financial assistance to the relevant 468
	569	+	community. 469
	570	+	(j) The council shall develop a proposal to allow social impact bonds 470
	571	+	to be issued by the state to support public schools located in community 471
	572	+	impact zones. Not later than February 1, 2022, the Secretary of the Office 472
	573	+	of Policy and Management shall submit a report, in accordance with the 473
	574	+	provisions of section 11-4a of the general statutes, to the General 474
	575	+	Assembly, setting forth the proposal and including recommendations 475
	576	+	on ways to leverage the federal qualified opportunity zones program to 476
	577	+	support such public schools. 477
	578	+	(k) (1) The council may cause to have conducted an external, 478
	579	+	independent audit of any community development corporation or 479
	580	+	community development credit union. 480
	581	+	(2) The council may request the Auditors of Public Accounts to 481
	582	+	perform, and said auditors shall perform, audits and other related 482
	583	+	evaluations to facilitate the council's responsibilities established under 483
	584	+	sections 1 to 4, inclusive, of this act. 484
	585	+	(l) Not later than February 1, 2024, and annually thereafter, the 485
	586	+	council shall submit a report to the Governor and to the General 486 Raised Bill No. 1104
593	587
594	588
595		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
596		-	R01-SB.docx }
597		-	17 of 33
598	589
599		-	(l) Not later than February 1, 2024, and annually thereafter, the 486
600		-	council shall submit a report to the Governor and to the General 487
601		-	Assembly, in accordance with the provisions of section 11-4a of the 488
602		-	general statutes. Such report shall include, but not be limited to, a list of 489
603		-	the community development corporations, community development 490
604		-	credit unions and community impact zones designated to date, a 491
605		-	summary of the programs, services, activities and efforts undertaken by 492
606		-	such corporations and credit unions pursuant to sections 1 and 2 of this 493
607		-	act and the disbursements made from the Community Development 494
608		-	Corporation Trust Fund to support such programs, services, activities 495
609		-	and efforts. 496
610		-	Sec. 4. (NEW) (Effective from passage) (a) There is established a fund to 497
611		-	be known as the "Community Development Corporation Trust Fund". 498
612		-	The fund shall contain any moneys required by law to be deposited in 499
613		-	the fund and shall be held in trust separate and apart from all other 500
614		-	moneys, funds and accounts. Investment earnings credited to the assets 501
615		-	of the fund shall become part of the assets of said fund. Any balance 502
616		-	remaining in the fund at the end of any fiscal year shall be carried 503
617		-	forward in the fund for the fiscal year next succeeding. Moneys in the 504
618		-	fund shall be expended by the community development corporation 505
619		-	oversight council established pursuant to section 3 of this act to be used 506
620		-	for the purposes set forth in sections 1 and 2 of this act. 507
621		-	(b) The Treasurer shall invest the amounts on deposit in the fund in 508
622		-	a manner reasonable and appropriate to achieve the objectives of the 509
623		-	fund, exercising the discretion and care of a prudent person in similar 510
624		-	circumstances with similar objectives. The Treasurer shall give due 511
625		-	consideration to rate of return, risk, term or maturity, diversification of 512
626		-	the total portfolio within the fund, liquidity, the projected 513
627		-	disbursements and expenditures, and the expected payments, deposits, 514
628		-	contributions and gifts to be received. The Treasurer shall not require 515
629		-	the fund to invest directly in obligations of the state or any political 516
630		-	subdivision of the state or in any investment or other fund administered 517
631		-	by the Treasurer. The assets of the fund shall be continuously invested 518 Substitute Bill No. 1104
	590	+	LCO No. 6689 17 of 33
	591	+
	592	+	Assembly, in accordance with the provisions of section 11-4a of the 487
	593	+	general statutes. Such report shall include, but not be limited to, a list of 488
	594	+	the community development corporations, community development 489
	595	+	credit unions and community impact zones designated to date, a 490
	596	+	summary of the programs, services, activities and efforts undertaken by 491
	597	+	such corporations and credit unions pursuant to sections 1 and 2 of this 492
	598	+	act and the disbursements made from the Community Development 493
	599	+	Corporation Trust Fund to support such programs, services, activities 494
	600	+	and efforts. 495
	601	+	Sec. 4. (NEW) (Effective from passage) (a) There is established a fund to 496
	602	+	be known as the "Community Development Corporation Trust Fund". 497
	603	+	The fund shall contain any moneys required by law to be deposited in 498
	604	+	the fund and shall be held in trust separate and apart from all other 499
	605	+	moneys, funds and accounts. Investment earnings credited to the assets 500
	606	+	of the fund shall become part of the assets of said fund. Any balance 501
	607	+	remaining in the fund at the end of any fiscal year shall be carried 502
	608	+	forward in the fund for the fiscal year next succeeding. Moneys in the 503
	609	+	fund shall be expended by the community development corporation 504
	610	+	oversight council established pursuant to section 3 of this act to be used 505
	611	+	for the purposes set forth in sections 1 and 2 of this act. 506
	612	+	(b) The Treasurer shall invest the amounts on deposit in the fund in 507
	613	+	a manner reasonable and appropriate to achieve the objectives of the 508
	614	+	fund, exercising the discretion and care of a prudent person in similar 509
	615	+	circumstances with similar objectives. The Treasurer shall give due 510
	616	+	consideration to rate of return, risk, term or maturity, diversification of 511
	617	+	the total portfolio within the fund, liquidity, the projected 512
	618	+	disbursements and expenditures, and the expected payments, deposits, 513
	619	+	contributions and gifts to be received. The Treasurer shall not require 514
	620	+	the fund to invest directly in obligations of the state or any political 515
	621	+	subdivision of the state or in any investment or other fund administered 516
	622	+	by the Treasurer. The assets of the fund shall be continuously invested 517
	623	+	and reinvested in a manner consistent with the objectives of the fund 518
	624	+	until disbursed for the purposes set forth in sections 1 and 2 of this act. 519 Raised Bill No. 1104
632	625
633	626
634		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
635		-	R01-SB.docx }
636		-	18 of 33
637	627
638		-	and reinvested in a manner consistent with the objectives of the fund 519
639		-	until disbursed for the purposes set forth in sections 1 and 2 of this act. 520
640		-	(c) On or before December thirty-first, annually, the Treasurer shall 521
641		-	submit a financial report, in accordance with the provisions of section 522
642		-	11-4a of the general statutes, to the community development 523
643		-	corporation oversight council and the joint standing committee of the 524
644		-	General Assembly having cognizance of matters relating to finance, 525
645		-	revenue and bonding, setting forth the receipts, disbursements, assets, 526
646		-	investments, liabilities and administrative costs of the fund for the prior 527
647		-	fiscal year. 528
648		-	Sec. 5. (NEW) (Effective from passage) Any entity that is exempt from 529
649		-	tax pursuant to Section 501(c) of the Internal Revenue Code of 1986, or 530
650		-	any subsequent corresponding internal revenue code of the United 531
651		-	States, as amended from time to time, and exempt from paying property 532
652		-	tax and any municipality and the state may make a deposit with a 533
653		-	community development credit union, to be invested by such credit 534
654		-	union to further the community restoration and revitalization purposes 535
655		-	set forth in sections 1 to 4, inclusive, of this act. Each community 536
656		-	development credit union that receives a deposit pursuant to this 537
657		-	section shall provide a rate of return on such deposit that is, at a 538
658		-	minimum, not less than the London Interbank Offered Rate. 539
659		-	Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 540
660		-	(1) "Cannabis" means "marijuana", as defined in section 21a-240 of the 541
661		-	general statutes. "Cannabis" does not include marijuana cultivated or 542
662		-	sold for palliative use pursuant to chapter 420f of the general statutes; 543
663		-	(2) "Cannabis concentrate" means any form of concentration, 544
664		-	including, but not limited to, extracts, oils, tinctures, shatter and waxes, 545
665		-	that is extracted from cannabis or a cannabis product; 546
666		-	(3) "Cannabis product" means a cannabis concentrate or a product 547
667		-	that contains cannabis, which may be combined with other ingredients, 548
668		-	and is intended for use or consumption. "Cannabis product" does not 549 Substitute Bill No. 1104
	628	+	LCO No. 6689 18 of 33
	629	+
	630	+	(c) On or before December thirty-first, annually, the Treasurer shall 520
	631	+	submit a financial report, in accordance with the provisions of section 521
	632	+	11-4a of the general statutes, to the community development 522
	633	+	corporation oversight council and the joint standing committee of the 523
	634	+	General Assembly having cognizance of matters relating to finance, 524
	635	+	revenue and bonding, setting forth the receipts, disbursements, assets, 525
	636	+	investments, liabilities and administrative costs of the fund for the prior 526
	637	+	fiscal year. 527
	638	+	Sec. 5. (NEW) (Effective from passage) Any entity that is exempt from 528
	639	+	paying property tax pursuant to Section 501(c) of the Internal Revenue 529
	640	+	Code of 1986, or any subsequent corresponding internal revenue code 530
	641	+	of the United States, as amended from time to time, any municipality 531
	642	+	and the state may make a deposit with a community development credit 532
	643	+	union, to be invested by such credit union to further the community 533
	644	+	restoration and revitalization purposes set forth in sections 1 to 4, 534
	645	+	inclusive, of this act. Each community development credit union that 535
	646	+	receives a deposit pursuant to this section shall provide a rate of return 536
	647	+	on such deposit that is, at a minimum, not less than the London 537
	648	+	Interbank Offered Rate. 538
	649	+	Sec. 6. (NEW) (Effective from passage) (a) As used in this section: 539
	650	+	(1) "Cannabis" means "marijuana", as defined in section 21a-240 of the 540
	651	+	general statutes. "Cannabis" does not include marijuana cultivated or 541
	652	+	sold for palliative use pursuant to chapter 420f of the general statutes; 542
	653	+	(2) "Cannabis concentrate" means any form of concentration, 543
	654	+	including, but not limited to, extracts, oils, tinctures, shatter and waxes, 544
	655	+	that is extracted from cannabis or a cannabis product; 545
	656	+	(3) "Cannabis product" means a cannabis concentrate or a product 546
	657	+	that contains cannabis, which may be combined with other ingredients, 547
	658	+	and is intended for use or consumption. "Cannabis product" does not 548
	659	+	include the raw cannabis plant; 549
	660	+	(4) "Cannabis retailer" means a person licensed by the Cannabis 550 Raised Bill No. 1104
669	661
670	662
671		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
672		-	R01-SB.docx }
673		-	19 of 33
674	663
675		-	include the raw cannabis plant; 550
676		-	(4) "Cannabis retailer" means a person licensed by the Department of 551
677		-	Consumer Protection to sell cannabis and cannabis products to 552
678		-	consumers; 553
679		-	(5) "Consumer" means an individual who is twenty-one years of age 554
680		-	or older; and 555
681		-	(6) "Municipality" means any town, city or borough, consolidated 556
682		-	town and city or consolidated town and borough. 557
683		-	(b) (1) On and after the date the Department of Consumer Protection 558
684		-	first issues a license to a cannabis retailer, there is imposed a local sales 559
685		-	tax at the rate of three per cent on the sale of all cannabis and cannabis 560
686		-	products. Such tax shall be in addition to the tax applicable to such sales 561
687		-	under section 12-408 of the general statutes, as amended by this act, and 562
688		-	shall be administered in the same manner as the tax under said section. 563
689		-	(2) Each cannabis retailer making such sales shall file with the 564
690		-	Commissioner of Revenue Services, on or before the last day of each 565
691		-	calendar quarter, a return for the calendar quarter immediately 566
692		-	preceding. Such returns shall be in such form and contain such 567
693		-	information as the commissioner prescribes and shall indicate the 568
694		-	municipality in which such sales occurred, and shall be accompanied by 569
695		-	a payment of the total amount of tax shown to be due thereon. 570
696		-	(c) The commissioner shall deposit any local sales tax collected 571
697		-	pursuant to subsection (b) of this section into the municipal cannabis 572
698		-	revenue account established under subsection (d) of this section. 573
699		-	(d) There is established an account to be known as the "municipal 574
700		-	cannabis revenue account" which shall be a separate account within the 575
701		-	General Fund. The account shall contain any moneys required by law to 576
702		-	be deposited in the account. Moneys in the account shall be expended 577
703		-	by the Commissioner of Revenue Services for the purpose of providing 578
704		-	moneys in accordance with this section to municipalities in which 579 Substitute Bill No. 1104
	664	+	LCO No. 6689 19 of 33
	665	+
	666	+	Control Commission to sell cannabis and cannabis products to 551
	667	+	consumers; 552
	668	+	(5) "Consumer" means an individual who is twenty-one years of age 553
	669	+	or older; 554
	670	+	(6) "Cannabis Control Commission" means the commission 555
	671	+	established under section 21 of substitute senate bill 888 of the current 556
	672	+	session; and 557
	673	+	(7) "Municipality" means any town, city or borough, consolidated 558
	674	+	town and city or consolidated town and borough. 559
	675	+	(b) (1) On and after the date the Cannabis Control Commission first 560
	676	+	issues a license to a cannabis retailer, there is imposed a local sales tax 561
	677	+	at the rate of three per cent on the sale of all cannabis and cannabis 562
	678	+	products. Such tax shall be in addition to the tax applicable to such sales 563
	679	+	under section 12-408 of the general statutes, as amended by this act, and 564
	680	+	shall be administered in the same manner as the tax under said section. 565
	681	+	(2) Each cannabis retailer making such sales shall file with the 566
	682	+	commissioner, on or before the last day of each calendar quarter, a 567
	683	+	return for the calendar quarter immediately preceding. Such returns 568
	684	+	shall be in such form and contain such information as the commissioner 569
	685	+	prescribes and shall indicate the municipality in which such sales 570
	686	+	occurred, and shall be accompanied by a payment of the total amount 571
	687	+	of tax shown to be due thereon. 572
	688	+	(c) The commissioner shall deposit any local sales tax collected 573
	689	+	pursuant to subsection (b) of this section into the municipal cannabis 574
	690	+	revenue account established under subsection (d) of this section. 575
	691	+	(d) There is established an account to be known as the "municipal 576
	692	+	cannabis revenue account" which shall be a separate account within the 577
	693	+	General Fund. The account shall contain any moneys required by law to 578
	694	+	be deposited in the account. Moneys in the account shall be expended 579
	695	+	by the Commissioner of Revenue Services for the purpose of providing 580 Raised Bill No. 1104
705	696
706	697
707		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
708		-	R01-SB.docx }
709		-	20 of 33
710	698
711		-	cannabis retailers are selling cannabis and cannabis products to 580
712		-	consumers. 581
713		-	(e) (1) The commissioner shall maintain (A) an accounting of all sums 582
714		-	deposited in the account, aggregated by municipality, (B) a listing of 583
715		-	sums remitted by each cannabis retailer, and (C) such other information 584
716		-	as the commissioner deems necessary for the purposes of this section. 585
717		-	(2) Commencing in the second calendar quarter following the initial 586
718		-	deposit into the account, the commissioner shall distribute on a 587
719		-	quarterly basis a sum, calculated on a point-of-sale basis, to each 588
720		-	municipality in which a cannabis retailer is located and for which a 589
721		-	point-of-sale can be determined. Any moneys remaining in the account 590
722		-	at the close of the fiscal year for which no point-of-sale can be 591
723		-	determined shall be transferred to the Community Development 592
724		-	Corporation Trust Fund established under section 4 of this act. 593
725		-	(3) The commissioner shall make available to each municipality in 594
726		-	which a cannabis retailer is located any information concerning such 595
727		-	municipality that is maintained under subdivision (1) of this subsection. 596
728		-	(f) If any person fails to pay the amount of tax reported due on its 597
729		-	report within the time specified under this section, there shall be 598
730		-	imposed a penalty equal to ten per cent of such amount due and unpaid, 599
731		-	or fifty dollars, whichever is greater. Such amount shall bear interest at 600
732		-	the rate of one per cent per month or fraction thereof, from the due date 601
733		-	of such tax until the date of payment. Subject to the provisions of section 602
734		-	12-3a of the general statutes, the commissioner may waive all or part of 603
735		-	the penalties provided under this section when it is proven to the 604
736		-	commissioner's satisfaction that the failure to pay any tax was due to 605
737		-	reasonable cause and was not intentional or due to neglect. 606
738		-	(g) Each person, other than a cannabis retailer, who is required, on 607
739		-	behalf of such retailer, to collect, truthfully account for and pay over a 608
740		-	tax imposed on such retailer under this section and who wilfully fails to 609
741		-	collect, truthfully account for and pay over such tax or who wilfully 610 Substitute Bill No. 1104
	699	+	LCO No. 6689 20 of 33
	700	+
	701	+	moneys in accordance with this section to municipalities in which 581
	702	+	cannabis retailers are selling cannabis and cannabis products to 582
	703	+	consumers. 583
	704	+	(e) (1) The commissioner shall maintain (A) an accounting of all sums 584
	705	+	deposited in the account, aggregated by municipality, (B) a listing of 585
	706	+	sums remitted by each cannabis retailer, and (C) such other information 586
	707	+	as the commissioner deems necessary for the purposes of this section. 587
	708	+	(2) Commencing in the second calendar quarter following the initial 588
	709	+	deposit into the account, the commissioner shall distribute on a 589
	710	+	quarterly basis a sum, calculated on a point-of-sale basis, to each 590
	711	+	municipality in which a cannabis retailer is located and for which a 591
	712	+	point-of-sale can be determined. Any moneys remaining in the account 592
	713	+	at the close of the fiscal year for which no point-of-sale can be 593
	714	+	determined shall be transferred to the Community Development 594
	715	+	Corporation Trust Fund established under section 4 of this act. 595
	716	+	(3) The commissioner shall make available to each municipality in 596
	717	+	which a cannabis retailer is located any information concerning such 597
	718	+	municipality that is maintained under subdivision (1) of this subsection. 598
	719	+	(f) If any person fails to pay the amount of tax reported due on its 599
	720	+	report within the time specified under this section, there shall be 600
	721	+	imposed a penalty equal to ten per cent of such amount due and unpaid, 601
	722	+	or fifty dollars, whichever is greater. Such amount shall bear interest at 602
	723	+	the rate of one per cent per month or fraction thereof, from the due date 603
	724	+	of such tax until the date of payment. Subject to the provisions of section 604
	725	+	12-3a of the general statutes, the commissioner may waive all or part of 605
	726	+	the penalties provided under this section when it is proven to the 606
	727	+	commissioner's satisfaction that the failure to pay any tax was due to 607
	728	+	reasonable cause and was not intentional or due to neglect. 608
	729	+	(g) Each person, other than a cannabis retailer, who is required, on 609
	730	+	behalf of such retailer, to collect, truthfully account for and pay over a 610
	731	+	tax imposed on such retailer under this section and who wilfully fails to 611
	732	+	collect, truthfully account for and pay over such tax or who wilfully 612 Raised Bill No. 1104
742	733
743	734
744		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
745		-	R01-SB.docx }
746		-	21 of 33
747	735
748		-	attempts in any manner to evade or defeat the tax or the payment 611
749		-	thereof, shall, in addition to other penalties provided by law, be liable 612
750		-	for a penalty equal to the total amount of the tax evaded, or not 613
751		-	collected, or not accounted for and paid over, including any penalty or 614
752		-	interest attributable to such wilful failure to collect or truthfully account 615
753		-	for and pay over such tax or such wilful attempt to evade or defeat such 616
754		-	tax, provided such penalty shall only be imposed against such person in 617
755		-	the event that such tax, penalty or interest cannot otherwise be collected 618
756		-	from such retailer. The amount of such penalty with respect to which a 619
757		-	person may be personally liable under this section shall be collected in 620
758		-	accordance with the provisions of section 12-555a of the general statutes 621
759		-	and any amount so collected shall be allowed as a credit against the 622
760		-	amount of such tax, penalty or interest due and owing from the retailer. 623
761		-	The dissolution of the retailer shall not discharge any person in relation 624
762		-	to any personal liability under this section for wilful failure to collect or 625
763		-	truthfully account for and pay over such tax or for a wilful attempt to 626
764		-	evade or defeat such tax prior to dissolution, except as otherwise 627
765		-	provided in this section. For purposes of this section, "person" includes 628
766		-	any individual, corporation, limited liability company or partnership 629
767		-	and any officer or employee of any corporation, including a dissolved 630
768		-	corporation, and a member or employee of any partnership or limited 631
769		-	liability company who, as such officer, employee or member, is under a 632
770		-	duty to file a tax return under this section on behalf of a cannabis retailer 633
771		-	or to collect or truthfully account for and pay over a tax imposed under 634
772		-	this section on behalf of such retailer. 635
773		-	(h) No tax credit or credits shall be allowable against the tax imposed 636
774		-	under this section. 637
775		-	(i) The provisions of sections 12-551 to 12-554, inclusive, and section 638
776		-	12-555a of the general statutes shall apply to the provisions of this 639
777		-	section in the same manner and with the same force and effect as if the 640
778		-	language of said sections had been incorporated in full into this section 641
779		-	and had expressly referred to the tax under this section, except to the 642
780		-	extent that any provision is inconsistent with a provision in this section. 643 Substitute Bill No. 1104
	736	+	LCO No. 6689 21 of 33
	737	+
	738	+	attempts in any manner to evade or defeat the tax or the payment 613
	739	+	thereof, shall, in addition to other penalties provided by law, be liable 614
	740	+	for a penalty equal to the total amount of the tax evaded, or not 615
	741	+	collected, or not accounted for and paid over, including any penalty or 616
	742	+	interest attributable to such wilful failure to collect or truthfully account 617
	743	+	for and pay over such tax or such wilful attempt to evade or defeat such 618
	744	+	tax, provided such penalty shall only be imposed against such person in 619
	745	+	the event that such tax, penalty or interest cannot otherwise be collected 620
	746	+	from such retailer. The amount of such penalty with respect to which a 621
	747	+	person may be personally liable under this section shall be collected in 622
	748	+	accordance with the provisions of section 12-555a of the general statutes 623
	749	+	and any amount so collected shall be allowed as a credit against the 624
	750	+	amount of such tax, penalty or interest due and owing from the retailer. 625
	751	+	The dissolution of the retailer shall not discharge any person in relation 626
	752	+	to any personal liability under this section for wilful failure to collect or 627
	753	+	truthfully account for and pay over such tax or for a wilful attempt to 628
	754	+	evade or defeat such tax prior to dissolution, except as otherwise 629
	755	+	provided in this section. For purposes of this section, "person" includes 630
	756	+	any individual, corporation, limited liability company or partnership 631
	757	+	and any officer or employee of any corporation, including a dissolved 632
	758	+	corporation, and a member or employee of any partnership or limited 633
	759	+	liability company who, as such officer, employee or member, is under a 634
	760	+	duty to file a tax return under this section on behalf of a cannabis retailer 635
	761	+	or to collect or truthfully account for and pay over a tax imposed under 636
	762	+	this section on behalf of such retailer. 637
	763	+	(h) No tax credit or credits shall be allowable against the tax imposed 638
	764	+	under this section. 639
	765	+	(i) The provisions of sections 12-551 to 12-554, inclusive, and section 640
	766	+	12-555a of the general statutes shall apply to the provisions of this 641
	767	+	section in the same manner and with the same force and effect as if the 642
	768	+	language of said sections had been incorporated in full into this section 643
	769	+	and had expressly referred to the tax under this section, except to the 644
	770	+	extent that any provision is inconsistent with a provision in this section. 645 Raised Bill No. 1104
781	771
782	772
783		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
784		-	R01-SB.docx }
785		-	22 of 33
786	773
787		-	(j) The commissioner may adopt regulations, in accordance with the 644
788		-	provisions of chapter 54 of the general statutes, to implement the 645
789		-	provisions of this section. 646
790		-	(k) At the close of each fiscal year in which the tax imposed under the 647
791		-	provisions of this section are received by the commissioner, the 648
792		-	Comptroller is authorized to record as revenue for such fiscal year the 649
793		-	amounts of such tax that are received by the commissioner not later than 650
794		-	five business days from the last day of July immediately following the 651
795		-	end of such fiscal year. 652
796		-	Sec. 7. Subdivision (1) of section 12-408 of the general statutes is 653
797		-	repealed and the following is substituted in lieu thereof (Effective from 654
798		-	passage): 655
799		-	(1) (A) For the privilege of making any sales, as defined in 656
800		-	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 657
801		-	for a consideration, a tax is hereby imposed on all retailers at the rate of 658
802		-	six and thirty-five-hundredths per cent of the gross receipts of any 659
803		-	retailer from the sale of all tangible personal property sold at retail or 660
804		-	from the rendering of any services constituting a sale in accordance with 661
805		-	subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 662
806		-	rate, the rates provided in subparagraphs (B) to [(I)] (J), inclusive, of this 663
807		-	subdivision; 664
808		-	(B) (i) At a rate of fifteen per cent with respect to each transfer of 665
809		-	occupancy, from the total amount of rent received by a hotel or lodging 666
810		-	house for the first period not exceeding thirty consecutive calendar 667
811		-	days; 668
812		-	(ii) At a rate of eleven per cent with respect to each transfer of 669
813		-	occupancy, from the total amount of rent received by a bed and 670
814		-	breakfast establishment for the first period not exceeding thirty 671
815		-	consecutive calendar days; 672
816		-	(C) With respect to the sale of a motor vehicle to any individual who 673
817		-	is a member of the armed forces of the United States and is on full-time 674 Substitute Bill No. 1104
	774	+	LCO No. 6689 22 of 33
	775	+
	776	+	(j) The commissioner may adopt regulations, in accordance with the 646
	777	+	provisions of chapter 54 of the general statutes, to implement the 647
	778	+	provisions of this section. 648
	779	+	(k) At the close of each fiscal year in which the tax imposed under the 649
	780	+	provisions of this section are received by the commissioner, the 650
	781	+	Comptroller is authorized to record as revenue for such fiscal year the 651
	782	+	amounts of such tax that are received by the commissioner not later than 652
	783	+	five business days from the last day of July immediately following the 653
	784	+	end of such fiscal year. 654
	785	+	Sec. 7. Subdivision (1) of section 12-408 of the general statutes is 655
	786	+	repealed and the following is substituted in lieu thereof (Effective from 656
	787	+	passage): 657
	788	+	(1) (A) For the privilege of making any sales, as defined in 658
	789	+	subdivision (2) of subsection (a) of section 12-407, at retail, in this state 659
	790	+	for a consideration, a tax is hereby imposed on all retailers at the rate of 660
	791	+	six and thirty-five-hundredths per cent of the gross receipts of any 661
	792	+	retailer from the sale of all tangible personal property sold at retail or 662
	793	+	from the rendering of any services constituting a sale in accordance with 663
	794	+	subdivision (2) of subsection (a) of section 12-407, except, in lieu of said 664
	795	+	rate, the rates provided in subparagraphs (B) to [(I)] (J), inclusive, of this 665
	796	+	subdivision; 666
	797	+	(B) (i) At a rate of fifteen per cent with respect to each transfer of 667
	798	+	occupancy, from the total amount of rent received by a hotel or lodging 668
	799	+	house for the first period not exceeding thirty consecutive calendar 669
	800	+	days; 670
	801	+	(ii) At a rate of eleven per cent with respect to each transfer of 671
	802	+	occupancy, from the total amount of rent received by a bed and 672
	803	+	breakfast establishment for the first period not exceeding thirty 673
	804	+	consecutive calendar days; 674
	805	+	(C) With respect to the sale of a motor vehicle to any individual who 675
	806	+	is a member of the armed forces of the United States and is on full-time 676 Raised Bill No. 1104
818	807
819	808
820		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
821		-	R01-SB.docx }
822		-	23 of 33
823	809
824		-	active duty in Connecticut and who is considered, under 50 App USC 675
825		-	574, a resident of another state, or to any such individual and the spouse 676
826		-	thereof, at a rate of four and one-half per cent of the gross receipts of any 677
827		-	retailer from such sales, provided such retailer requires and maintains a 678
828		-	declaration by such individual, prescribed as to form by the 679
829		-	commissioner and bearing notice to the effect that false statements made 680
830		-	in such declaration are punishable, or other evidence, satisfactory to the 681
831		-	commissioner, concerning the purchaser's state of residence under 50 682
832		-	App USC 574; 683
833		-	(D) (i) With respect to the sales of computer and data processing 684
834		-	services occurring on or after July 1, 2001, at the rate of one per cent, and 685
835		-	(ii) with respect to sales of Internet access services, on and after July 1, 686
836		-	2001, such services shall be exempt from such tax; 687
837		-	(E) (i) With respect to the sales of labor that is otherwise taxable under 688
838		-	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 689
839		-	12-407 on existing vessels and repair or maintenance services on vessels 690
840		-	occurring on and after July 1, 1999, such services shall be exempt from 691
841		-	such tax; 692
842		-	(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 693
843		-	used for transporting a vessel, at the rate of two and ninety-nine-694
844		-	hundredths per cent, except that the sale of a vessel shall be exempt from 695
845		-	such tax if such vessel is docked in this state for sixty or fewer days in a 696
846		-	calendar year; 697
847		-	(iii) With respect to the sale of dyed diesel fuel, as defined in 698
848		-	subsection (d) of section 12-487, sold by a marine fuel dock exclusively 699
849		-	for marine purposes, at the rate of two and ninety-nine-hundredths per 700
850		-	cent; 701
851		-	(F) With respect to patient care services for which payment is 702
852		-	received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 703
853		-	at the rate of five and three-fourths per cent and on and after July 1, 2001, 704
854		-	such services shall be exempt from such tax; 705 Substitute Bill No. 1104
	810	+	LCO No. 6689 23 of 33
	811	+
	812	+	active duty in Connecticut and who is considered, under 50 App USC 677
	813	+	574, a resident of another state, or to any such individual and the spouse 678
	814	+	thereof, at a rate of four and one-half per cent of the gross receipts of any 679
	815	+	retailer from such sales, provided such retailer requires and maintains a 680
	816	+	declaration by such individual, prescribed as to form by the 681
	817	+	commissioner and bearing notice to the effect that false statements made 682
	818	+	in such declaration are punishable, or other evidence, satisfactory to the 683
	819	+	commissioner, concerning the purchaser's state of residence under 50 684
	820	+	App USC 574; 685
	821	+	(D) (i) With respect to the sales of computer and data processing 686
	822	+	services occurring on or after July 1, 2001, at the rate of one per cent, and 687
	823	+	(ii) with respect to sales of Internet access services, on and after July 1, 688
	824	+	2001, such services shall be exempt from such tax; 689
	825	+	(E) (i) With respect to the sales of labor that is otherwise taxable under 690
	826	+	subparagraph (C) or (G) of subdivision (2) of subsection (a) of section 691
	827	+	12-407 on existing vessels and repair or maintenance services on vessels 692
	828	+	occurring on and after July 1, 1999, such services shall be exempt from 693
	829	+	such tax; 694
	830	+	(ii) With respect to the sale of a vessel, a motor for a vessel or a trailer 695
	831	+	used for transporting a vessel, at the rate of two and ninety-nine-696
	832	+	hundredths per cent, except that the sale of a vessel shall be exempt from 697
	833	+	such tax if such vessel is docked in this state for sixty or fewer days in a 698
	834	+	calendar year; 699
	835	+	(iii) With respect to the sale of dyed diesel fuel, as defined in 700
	836	+	subsection (d) of section 12-487, sold by a marine fuel dock exclusively 701
	837	+	for marine purposes, at the rate of two and ninety-nine-hundredths per 702
	838	+	cent; 703
	839	+	(F) With respect to patient care services for which payment is 704
	840	+	received by the hospital on or after July 1, 1999, and prior to July 1, 2001, 705
	841	+	at the rate of five and three-fourths per cent and on and after July 1, 2001, 706
	842	+	such services shall be exempt from such tax; 707 Raised Bill No. 1104
855	843
856	844
857		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
858		-	R01-SB.docx }
859		-	24 of 33
860	845
861		-	(G) With respect to the rental or leasing of a passenger motor vehicle 706
862		-	for a period of thirty consecutive calendar days or less, at a rate of nine 707
863		-	and thirty-five-hundredths per cent; 708
864		-	(H) With respect to the sale of (i) a motor vehicle for a sales price 709
865		-	exceeding fifty thousand dollars, at a rate of seven and three-fourths per 710
866		-	cent on the entire sales price, (ii) jewelry, whether real or imitation, for 711
867		-	a sales price exceeding five thousand dollars, at a rate of seven and 712
868		-	three-fourths per cent on the entire sales price, and (iii) an article of 713
869		-	clothing or footwear intended to be worn on or about the human body, 714
870		-	a handbag, luggage, umbrella, wallet or watch for a sales price 715
871		-	exceeding one thousand dollars, at a rate of seven and three-fourths per 716
872		-	cent on the entire sales price. For purposes of this subparagraph, "motor 717
873		-	vehicle" has the meaning provided in section 14-1, but does not include 718
874		-	a motor vehicle subject to the provisions of subparagraph (C) of this 719
875		-	subdivision, a motor vehicle having a gross vehicle weight rating over 720
876		-	twelve thousand five hundred pounds, or a motor vehicle having a 721
877		-	gross vehicle weight rating of twelve thousand five hundred pounds or 722
878		-	less that is not used for private passenger purposes, but is designed or 723
879		-	used to transport merchandise, freight or persons in connection with 724
880		-	any business enterprise and issued a commercial registration or more 725
881		-	specific type of registration by the Department of Motor Vehicles; 726
882		-	(I) With respect to the sale of meals, as defined in subdivision (13) of 727
883		-	section 12-412, sold by an eating establishment, caterer or grocery store; 728
884		-	and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 729
885		-	such as are ordinarily dispensed at bars and soda fountains, or in 730
886		-	connection therewith; in addition to the tax imposed under 731
887		-	subparagraph (A) of this subdivision, at the rate of one per cent; 732
888		-	(J) On and after the date the Department of Consumer Protection first 733
889		-	issues a license to a cannabis retailer, with respect to the sale of cannabis 734
890		-	and cannabis products, at a rate of twenty per cent. As used in this 735
891		-	subparagraph, "cannabis", "cannabis product" and "cannabis retailer" 736
892		-	have the same meanings as provided in section 6 of this act; 737 Substitute Bill No. 1104
	846	+	LCO No. 6689 24 of 33
	847	+
	848	+	(G) With respect to the rental or leasing of a passenger motor vehicle 708
	849	+	for a period of thirty consecutive calendar days or less, at a rate of nine 709
	850	+	and thirty-five-hundredths per cent; 710
	851	+	(H) With respect to the sale of (i) a motor vehicle for a sales price 711
	852	+	exceeding fifty thousand dollars, at a rate of seven and three-fourths per 712
	853	+	cent on the entire sales price, (ii) jewelry, whether real or imitation, for 713
	854	+	a sales price exceeding five thousand dollars, at a rate of seven and 714
	855	+	three-fourths per cent on the entire sales price, and (iii) an article of 715
	856	+	clothing or footwear intended to be worn on or about the human body, 716
	857	+	a handbag, luggage, umbrella, wallet or watch for a sales price 717
	858	+	exceeding one thousand dollars, at a rate of seven and three-fourths per 718
	859	+	cent on the entire sales price. For purposes of this subparagraph, "motor 719
	860	+	vehicle" has the meaning provided in section 14-1, but does not include 720
	861	+	a motor vehicle subject to the provisions of subparagraph (C) of this 721
	862	+	subdivision, a motor vehicle having a gross vehicle weight rating over 722
	863	+	twelve thousand five hundred pounds, or a motor vehicle having a 723
	864	+	gross vehicle weight rating of twelve thousand five hundred pounds or 724
	865	+	less that is not used for private passenger purposes, but is designed or 725
	866	+	used to transport merchandise, freight or persons in connection with 726
	867	+	any business enterprise and issued a commercial registration or more 727
	868	+	specific type of registration by the Department of Motor Vehicles; 728
	869	+	(I) With respect to the sale of meals, as defined in subdivision (13) of 729
	870	+	section 12-412, sold by an eating establishment, caterer or grocery store; 730
	871	+	and spirituous, malt or vinous liquors, soft drinks, sodas or beverages 731
	872	+	such as are ordinarily dispensed at bars and soda fountains, or in 732
	873	+	connection therewith; in addition to the tax imposed under 733
	874	+	subparagraph (A) of this subdivision, at the rate of one per cent; 734
	875	+	(J) On and after the date the Cannabis Control Commission first 735
	876	+	issues a license to a cannabis retailer, with respect to the sale of cannabis 736
	877	+	and cannabis products, at a rate of twenty per cent. As used in this 737
	878	+	subparagraph, "cannabis", "cannabis product", "cannabis retailer" and 738
	879	+	"Cannabis Control Commission" have the same meanings as provided 739
	880	+	in section 6 of this act; 740 Raised Bill No. 1104
893	881
894	882
895		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
896		-	R01-SB.docx }
897		-	25 of 33
898	883
899		-	[(J)] (K) The rate of tax imposed by this chapter shall be applicable to 738
900		-	all retail sales upon the effective date of such rate, except that a new rate 739
901		-	that represents an increase in the rate applicable to the sale shall not 740
902		-	apply to any sales transaction wherein a binding sales contract without 741
903		-	an escalator clause has been entered into prior to the effective date of the 742
904		-	new rate and delivery is made within ninety days after the effective date 743
905		-	of the new rate. For the purposes of payment of the tax imposed under 744
906		-	this section, any retailer of services taxable under subdivision (37) of 745
907		-	subsection (a) of section 12-407, who computes taxable income, for 746
908		-	purposes of taxation under the Internal Revenue Code of 1986, or any 747
909		-	subsequent corresponding internal revenue code of the United States, 748
910		-	as amended from time to time, on an accounting basis that recognizes 749
911		-	only cash or other valuable consideration actually received as income 750
912		-	and who is liable for such tax only due to the rendering of such services 751
913		-	may make payments related to such tax for the period during which 752
914		-	such income is received, without penalty or interest, without regard to 753
915		-	when such service is rendered; 754
916		-	[(K)] (L) (i) For calendar quarters ending on or after September 30, 755
917		-	2019, the commissioner shall deposit into the regional planning 756
918		-	incentive account, established pursuant to section 4-66k, six and seven-757
919		-	tenths per cent of the amounts received by the state from the tax 758
920		-	imposed under subparagraph (B) of this subdivision and ten and seven-759
921		-	tenths per cent of the amounts received by the state from the tax 760
922		-	imposed under subparagraph (G) of this subdivision; 761
923		-	(ii) For calendar quarters ending on or after September 30, 2018, the 762
924		-	commissioner shall deposit into the Tourism Fund established under 763
925		-	section 10-395b ten per cent of the amounts received by the state from 764
926		-	the tax imposed under subparagraph (B) of this subdivision; 765
927		-	[(L)] (M) For calendar months commencing on or after July 1, 2021, 766
928		-	the commissioner shall deposit into the municipal revenue sharing 767
929		-	account established pursuant to section 4-66l seven and nine-tenths per 768
930		-	cent of the amounts received by the state from the tax imposed under 769
931		-	subparagraph (A) of this subdivision; and 770 Substitute Bill No. 1104
	884	+	LCO No. 6689 25 of 33
	885	+
	886	+	[(J)] (K) The rate of tax imposed by this chapter shall be applicable to 741
	887	+	all retail sales upon the effective date of such rate, except that a new rate 742
	888	+	that represents an increase in the rate applicable to the sale shall not 743
	889	+	apply to any sales transaction wherein a binding sales contract without 744
	890	+	an escalator clause has been entered into prior to the effective date of the 745
	891	+	new rate and delivery is made within ninety days after the effective date 746
	892	+	of the new rate. For the purposes of payment of the tax imposed under 747
	893	+	this section, any retailer of services taxable under subdivision (37) of 748
	894	+	subsection (a) of section 12-407, who computes taxable income, for 749
	895	+	purposes of taxation under the Internal Revenue Code of 1986, or any 750
	896	+	subsequent corresponding internal revenue code of the United States, 751
	897	+	as amended from time to time, on an accounting basis that recognizes 752
	898	+	only cash or other valuable consideration actually received as income 753
	899	+	and who is liable for such tax only due to the rendering of such services 754
	900	+	may make payments related to such tax for the period during which 755
	901	+	such income is received, without penalty or interest, without regard to 756
	902	+	when such service is rendered; 757
	903	+	[(K)] (L) (i) For calendar quarters ending on or after September 30, 758
	904	+	2019, the commissioner shall deposit into the regional planning 759
	905	+	incentive account, established pursuant to section 4-66k, six and seven-760
	906	+	tenths per cent of the amounts received by the state from the tax 761
	907	+	imposed under subparagraph (B) of this subdivision and ten and seven-762
	908	+	tenths per cent of the amounts received by the state from the tax 763
	909	+	imposed under subparagraph (G) of this subdivision; 764
	910	+	(ii) For calendar quarters ending on or after September 30, 2018, the 765
	911	+	commissioner shall deposit into the Tourism Fund established under 766
	912	+	section 10-395b ten per cent of the amounts received by the state from 767
	913	+	the tax imposed under subparagraph (B) of this subdivision; 768
	914	+	[(L)] (M) For calendar months commencing on or after July 1, 2021, 769
	915	+	the commissioner shall deposit into the municipal revenue sharing 770
	916	+	account established pursuant to section 4-66l seven and nine-tenths per 771
	917	+	cent of the amounts received by the state from the tax imposed under 772
	918	+	subparagraph (A) of this subdivision; and 773 Raised Bill No. 1104
932	919
933	920
934		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
935		-	R01-SB.docx }
936		-	26 of 33
937	921
938		-	[(M)] (N) (i) For calendar months commencing on or after July 1, 2017, 771
939		-	the commissioner shall deposit into the Special Transportation Fund 772
940		-	established under section 13b-68 seven and nine-tenths per cent of the 773
941		-	amounts received by the state from the tax imposed under 774
942		-	subparagraph (A) of this subdivision; 775
943		-	(ii) For calendar months commencing on or after July 1, 2018, but 776
944		-	prior to July 1, 2019, the commissioner shall deposit into the Special 777
945		-	Transportation Fund established under section 13b-68 eight per cent of 778
946		-	the amounts received by the state from the tax imposed under 779
947		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 780
948		-	vehicle; 781
949		-	(iii) For calendar months commencing on or after July 1, 2019, but 782
950		-	prior to July 1, 2020, the commissioner shall deposit into the Special 783
951		-	Transportation Fund established under section 13b-68 seventeen per 784
952		-	cent of the amounts received by the state from the tax imposed under 785
953		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 786
954		-	vehicle; 787
955		-	(iv) For calendar months commencing on or after July 1, 2020, but 788
956		-	prior to July 1, 2021, the commissioner shall deposit into the Special 789
957		-	Transportation Fund established under section 13b-68 twenty-five per 790
958		-	cent of the amounts received by the state from the tax imposed under 791
959		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 792
960		-	vehicle; 793
961		-	(v) For calendar months commencing on or after July 1, 2021, but 794
962		-	prior to July 1, 2022, the commissioner shall deposit into the Special 795
963		-	Transportation Fund established under section 13b-68 seventy-five per 796
964		-	cent of the amounts received by the state from the tax imposed under 797
965		-	subparagraphs (A) and (H) of this subdivision on the sale of a motor 798
966		-	vehicle; and 799
967		-	(vi) For calendar months commencing on or after July 1, 2022, the 800
968		-	commissioner shall deposit into the Special Transportation Fund 801 Substitute Bill No. 1104
	922	+	LCO No. 6689 26 of 33
	923	+
	924	+	[(M)] (N) (i) For calendar months commencing on or after July 1, 2017, 774
	925	+	the commissioner shall deposit into the Special Transportation Fund 775
	926	+	established under section 13b-68 seven and nine-tenths per cent of the 776
	927	+	amounts received by the state from the tax imposed under 777
	928	+	subparagraph (A) of this subdivision; 778
	929	+	(ii) For calendar months commencing on or after July 1, 2018, but 779
	930	+	prior to July 1, 2019, the commissioner shall deposit into the Special 780
	931	+	Transportation Fund established under section 13b-68 eight per cent of 781
	932	+	the amounts received by the state from the tax imposed under 782
	933	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 783
	934	+	vehicle; 784
	935	+	(iii) For calendar months commencing on or after July 1, 2019, but 785
	936	+	prior to July 1, 2020, the commissioner shall deposit into the Special 786
	937	+	Transportation Fund established under section 13b-68 seventeen per 787
	938	+	cent of the amounts received by the state from the tax imposed under 788
	939	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 789
	940	+	vehicle; 790
	941	+	(iv) For calendar months commencing on or after July 1, 2020, but 791
	942	+	prior to July 1, 2021, the commissioner shall deposit into the Special 792
	943	+	Transportation Fund established under section 13b-68 twenty-five per 793
	944	+	cent of the amounts received by the state from the tax imposed under 794
	945	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 795
	946	+	vehicle; 796
	947	+	(v) For calendar months commencing on or after July 1, 2021, but 797
	948	+	prior to July 1, 2022, the commissioner shall deposit into the Special 798
	949	+	Transportation Fund established under section 13b-68 seventy-five per 799
	950	+	cent of the amounts received by the state from the tax imposed under 800
	951	+	subparagraphs (A) and (H) of this subdivision on the sale of a motor 801
	952	+	vehicle; and 802
	953	+	(vi) For calendar months commencing on or after July 1, 2022, the 803
	954	+	commissioner shall deposit into the Special Transportation Fund 804
	955	+	established under section 13b-68 one hundred per cent of the amounts 805 Raised Bill No. 1104
969	956
970	957
971		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
972		-	R01-SB.docx }
973		-	27 of 33
974	958
975		-	established under section 13b-68 one hundred per cent of the amounts 802
976		-	received by the state from the tax imposed under subparagraphs (A) 803
977		-	and (H) of this subdivision on the sale of a motor vehicle; and 804
978		-	(O) For calendar quarters ending on or after the initial remittance of 805
979		-	the tax on the sale of cannabis and cannabis products, each as defined 806
980		-	in section 6 of this act, the commissioner shall deposit into the 807
981		-	Community Development Corporation Trust Fund established under 808
982		-	section 4 of this act one hundred per cent of the amounts received and 809
983		-	retained by the state from the tax imposed under subparagraph (J) of 810
984		-	this subdivision. 811
985		-	Sec. 8. Section 12-408 of the general statutes is amended by adding 812
986		-	subdivision (8) as follows (Effective from passage): 813
987		-	(NEW) (8) No tax credit or credits shall be allowable against the tax 814
988		-	imposed under subparagraph (J) of subdivision (1) of this section. 815
989		-	Sec. 9. Section 36a-455a of the general statutes is repealed and the 816
990		-	following is substituted in lieu thereof (Effective from passage): 817
991		-	A Connecticut credit union may: 818
992		-	(1) Transact a general credit union business and exercise by its 819
993		-	governing board or duly authorized members of senior management, 820
994		-	subject to applicable law, all such incidental powers as are consistent 821
995		-	with its purposes. The express powers authorized for a Connecticut 822
996		-	credit union under this section do not preclude the existence of 823
997		-	additional powers deemed to be incidental to the transaction of a 824
998		-	general credit union business pursuant to this subdivision; 825
999		-	(2) (A) Issue shares to its members and receive payments on shares 826
1000		-	from its members and from those nonmembers specified in subsection 827
1001		-	(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 828
1002		-	36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 829
1003		-	receive deposits of members and nonmembers subject to provisions of 830
1004		-	sections 36a-456a and 36a-456b, (C) reduce the amount of its member 831 Substitute Bill No. 1104
	959	+	LCO No. 6689 27 of 33
	960	+
	961	+	received by the state from the tax imposed under subparagraphs (A) 806
	962	+	and (H) of this subdivision on the sale of a motor vehicle; and 807
	963	+	(O) For calendar quarters ending on or after the initial deposit of the 808
	964	+	tax on the sale of cannabis and cannabis products, each as defined in 809
	965	+	section 6 of this act, the commissioner shall deposit into the Community 810
	966	+	Development Corporation Trust Fund established under section 4 of 811
	967	+	this act one hundred per cent of the amounts received and retained by 812
	968	+	the state from the tax imposed under subparagraph (J) of this 813
	969	+	subdivision. 814
	970	+	Sec. 8. Section 12-408 of the general statutes is amended by adding 815
	971	+	subdivision (8) as follows (Effective from passage): 816
	972	+	(NEW) (8) No tax credit or credits shall be allowable against the tax 817
	973	+	imposed under subparagraph (J) of subdivision (1) of this section. 818
	974	+	Sec. 9. Section 36a-455a of the general statutes is repealed and the 819
	975	+	following is substituted in lieu thereof (Effective from passage): 820
	976	+	A Connecticut credit union may: 821
	977	+	(1) Transact a general credit union business and exercise by its 822
	978	+	governing board or duly authorized members of senior management, 823
	979	+	subject to applicable law, all such incidental powers as are consistent 824
	980	+	with its purposes. The express powers authorized for a Connecticut 825
	981	+	credit union under this section do not preclude the existence of 826
	982	+	additional powers deemed to be incidental to the transaction of a 827
	983	+	general credit union business pursuant to this subdivision; 828
	984	+	(2) (A) Issue shares to its members and receive payments on shares 829
	985	+	from its members and from those nonmembers specified in subsection 830
	986	+	(e) of section 36a-456a, subject to the provisions of sections 36a-290 to 831
	987	+	36a-297, inclusive, 36a-330 to 36a-338, inclusive, and 36a-456a, (B) 832
	988	+	receive deposits of members and nonmembers subject to provisions of 833
	989	+	sections 36a-456a and 36a-456b, (C) reduce the amount of its member 834
	990	+	and nonmember shares and deposits, (D) expel members and cancel 835 Raised Bill No. 1104
1005	991
1006	992
1007		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1008		-	R01-SB.docx }
1009		-	28 of 33
1010	993
1011		-	and nonmember shares and deposits, (D) expel members and cancel 832
1012		-	shares in accordance with section 36a-439a, and (E) provide check 833
1013		-	cashing and wire and electronic transfer services to nonmembers who 834
1014		-	are within such credit union's field of membership; 835
1015		-	(3) Make and use its best efforts to make secured and unsecured loans 836
1016		-	and other extensions of credit to its members in accordance with section 837
1017		-	36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 838
1018		-	(4) Invest its funds in accordance with section 36a-459a; 839
1019		-	(5) Declare and pay dividends in accordance with sections 36a-441a 840
1020		-	and 36a-456c, and pay interest refunds to borrowers; 841
1021		-	(6) Act as a finder or agent for the sale of insurance and fixed and 842
1022		-	variable rate annuities directly, sell insurance and such annuities 843
1023		-	indirectly through a Connecticut credit union service organization, or 844
1024		-	enter into arrangements with third-party marketing organizations for 845
1025		-	the sale by such third-party marketing organizations of insurance or 846
1026		-	such annuities on the premises of the Connecticut credit union or to 847
1027		-	members of the Connecticut credit union, provided: (A) Such insurance 848
1028		-	and annuities are issued or purchased by or from an insurance company 849
1029		-	licensed in accordance with section 38a-41; and (B) the Connecticut 850
1030		-	credit union, Connecticut credit union service organization or third-851
1031		-	party marketing organization, and any officer and employee thereof, 852
1032		-	shall be licensed as required by section 38a-769 before engaging in any 853
1033		-	of the activities authorized by this subdivision. As used in this 854
1034		-	subdivision, "annuities" and "insurance" have the same meanings as set 855
1035		-	forth in section 38a-41, except that "insurance" does not include title 856
1036		-	insurance. The provisions of this subdivision do not authorize a 857
1037		-	Connecticut credit union or Connecticut credit union service 858
1038		-	organization to underwrite insurance or annuities; 859
1039		-	(7) Borrow money to an amount not exceeding fifty per cent of the 860
1040		-	total assets of the Connecticut credit union provided the credit union 861
1041		-	shall give prior notice to the commissioner in writing of its intention to 862 Substitute Bill No. 1104
	994	+	LCO No. 6689 28 of 33
	995	+
	996	+	shares in accordance with section 36a-439a, and (E) provide check 836
	997	+	cashing and wire and electronic transfer services to nonmembers who 837
	998	+	are within such credit union's field of membership; 838
	999	+	(3) Make and use its best efforts to make secured and unsecured loans 839
	1000	+	and other extensions of credit to its members in accordance with section 840
	1001	+	36a-265 and sections 36a-457a, 36a-457b and 36a-458a; 841
	1002	+	(4) Invest its funds in accordance with section 36a-459a; 842
	1003	+	(5) Declare and pay dividends in accordance with sections 36a-441a 843
	1004	+	and 36a-456c, and pay interest refunds to borrowers; 844
	1005	+	(6) Act as a finder or agent for the sale of insurance and fixed and 845
	1006	+	variable rate annuities directly, sell insurance and such annuities 846
	1007	+	indirectly through a Connecticut credit union service organization, or 847
	1008	+	enter into arrangements with third-party marketing organizations for 848
	1009	+	the sale by such third-party marketing organizations of insurance or 849
	1010	+	such annuities on the premises of the Connecticut credit union or to 850
	1011	+	members of the Connecticut credit union, provided: (A) Such insurance 851
	1012	+	and annuities are issued or purchased by or from an insurance company 852
	1013	+	licensed in accordance with section 38a-41; and (B) the Connecticut 853
	1014	+	credit union, Connecticut credit union service organization or third-854
	1015	+	party marketing organization, and any officer and employee thereof, 855
	1016	+	shall be licensed as required by section 38a-769 before engaging in any 856
	1017	+	of the activities authorized by this subdivision. As used in this 857
	1018	+	subdivision, "annuities" and "insurance" have the same meanings as set 858
	1019	+	forth in section 38a-41, except that "insurance" does not include title 859
	1020	+	insurance. The provisions of this subdivision do not authorize a 860
	1021	+	Connecticut credit union or Connecticut credit union service 861
	1022	+	organization to underwrite insurance or annuities; 862
	1023	+	(7) Borrow money to an amount not exceeding fifty per cent of the 863
	1024	+	total assets of the Connecticut credit union provided the credit union 864
	1025	+	shall give prior notice to the commissioner in writing of its intention to 865
	1026	+	borrow amounts in excess of thirty-five per cent of its total assets; 866 Raised Bill No. 1104
1042	1027
1043	1028
1044		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1045		-	R01-SB.docx }
1046		-	29 of 33
1047	1029
1048		-	borrow amounts in excess of thirty-five per cent of its total assets; 863
1049		-	(8) Act as fiscal agent for the federal government, this state or any 864
1050		-	agency or political subdivision thereof; 865
1051		-	(9) Provide loan processing, loan servicing, member check and 866
1052		-	money order cashing services, disbursement of share withdrawals and 867
1053		-	loan proceeds, money orders, internal audits, automated teller machine 868
1054		-	services, ACH and wire transfer services, prepaid debit cards, payroll 869
1055		-	cards, digital wallet services, coin and currency services, remote deposit 870
1056		-	capture services, electronic banking and other similar services to other 871
1057		-	Connecticut credit unions, federal credit unions, federally insured 872
1058		-	financial institutions and out-of-state credit unions; 873
1059		-	(10) Provide finder services to its members, including the offering of 874
1060		-	third party products and services through the sale of advertising space 875
1061		-	on its web site, account statements and receipts, and the sale of statistical 876
1062		-	or consumer financial information to outside vendors in accordance 877
1063		-	with sections 36a-40 to 36a-45, inclusive, in order to facilitate the sale of 878
1064		-	such products to the members of such Connecticut credit union; 879
1065		-	(11) With the prior approval of the commissioner, exercise fiduciary 880
1066		-	powers; 881
1067		-	(12) Maintain and rent safe deposit boxes within suitably constructed 882
1068		-	vaults, provided the Connecticut credit union has adequate insurance 883
1069		-	coverage for losses related to such rental; 884
1070		-	(13) Provide certification services, including notary services, 885
1071		-	signature guaranties, certification of electronic signatures and share 886
1072		-	draft certifications; 887
1073		-	(14) Act as agent (A) in the collection of taxes for any qualified 888
1074		-	treasurer of any taxing district or qualified collector of taxes, or (B) for 889
1075		-	any electric distribution, gas, water or telephone company operating 890
1076		-	within this state in receiving moneys due such company for utility 891
1077		-	services furnished by it; 892 Substitute Bill No. 1104
	1030	+	LCO No. 6689 29 of 33
	1031	+
	1032	+	(8) Act as fiscal agent for the federal government, this state or any 867
	1033	+	agency or political subdivision thereof; 868
	1034	+	(9) Provide loan processing, loan servicing, member check and 869
	1035	+	money order cashing services, disbursement of share withdrawals and 870
	1036	+	loan proceeds, money orders, internal audits, automated teller machine 871
	1037	+	services, ACH and wire transfer services, prepaid debit cards, payroll 872
	1038	+	cards, digital wallet services, coin and currency services, remote deposit 873
	1039	+	capture services, electronic banking and other similar services to other 874
	1040	+	Connecticut credit unions, federal credit unions, federally insured 875
	1041	+	financial institutions and out-of-state credit unions; 876
	1042	+	(10) Provide finder services to its members, including the offering of 877
	1043	+	third party products and services through the sale of advertising space 878
	1044	+	on its web site, account statements and receipts, and the sale of statistical 879
	1045	+	or consumer financial information to outside vendors in accordance 880
	1046	+	with sections 36a-40 to 36a-45, inclusive, in order to facilitate the sale of 881
	1047	+	such products to the members of such Connecticut credit union; 882
	1048	+	(11) With the prior approval of the commissioner, exercise fiduciary 883
	1049	+	powers; 884
	1050	+	(12) Maintain and rent safe deposit boxes within suitably constructed 885
	1051	+	vaults, provided the Connecticut credit union has adequate insurance 886
	1052	+	coverage for losses related to such rental; 887
	1053	+	(13) Provide certification services, including notary services, 888
	1054	+	signature guaranties, certification of electronic signatures and share 889
	1055	+	draft certifications; 890
	1056	+	(14) Act as agent (A) in the collection of taxes for any qualified 891
	1057	+	treasurer of any taxing district or qualified collector of taxes, or (B) for 892
	1058	+	any electric distribution, gas, water or telephone company operating 893
	1059	+	within this state in receiving moneys due such company for utility 894
	1060	+	services furnished by it; 895
	1061	+	(15) Issue and sell securities which (A) are guaranteed by the Federal 896 Raised Bill No. 1104
1078	1062
1079	1063
1080		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1081		-	R01-SB.docx }
1082		-	30 of 33
1083	1064
1084		-	(15) Issue and sell securities which (A) are guaranteed by the Federal 893
1085		-	National Mortgage Association or any other agency or instrumentality 894
1086		-	authorized by state or federal law to create a secondary market with 895
1087		-	respect to extensions of credit of the type originated by the Connecticut 896
1088		-	credit union, or (B) subject to the approval of the commissioner, relate 897
1089		-	to extensions of credit originated by the Connecticut credit union and 898
1090		-	are guaranteed or insured by a financial guaranty insurance company 899
1091		-	or comparable private entity; 900
1092		-	(16) Establish a charitable fund, either in the form of a charitable trust 901
1093		-	or a nonprofit corporation to assist in making charitable contributions, 902
1094		-	provided (A) the trust or nonprofit corporation is exempt from federal 903
1095		-	income taxation and may accept charitable contributions under Section 904
1096		-	501 of the Internal Revenue Code of 1986, or any subsequent 905
1097		-	corresponding internal revenue code of the United States, as from time 906
1098		-	to time amended, (B) the trust or nonprofit corporation's operations are 907
1099		-	disclosed fully to the commissioner upon request, and (C) the trust 908
1100		-	department of the credit union or one or more directors or members of 909
1101		-	senior management of the credit union act as trustees or directors of the 910
1102		-	fund; 911
1103		-	(17) In the discretion of a majority of its governing board, make 912
1104		-	contributions or gifts to or for the use of any corporation, trust or 913
1105		-	community chest, fund or foundation created or organized under the 914
1106		-	laws of the United States or of this state and organized and operated 915
1107		-	exclusively for charitable, educational or public welfare purposes, or of 916
1108		-	any hospital which is located in this state and which is exempt from 917
1109		-	federal income taxes and to which contributions are deductible under 918
1110		-	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 919
1111		-	corresponding internal revenue code of the United States, as from time 920
1112		-	to time amended; 921
1113		-	(18) Subject to the provisions of section 36a-455b, sell, pledge or 922
1114		-	assign any or all of its outstanding extensions of credit to any other 923
1115		-	lending institution, credit union service organization or quasi-924
1116		-	governmental entity and any government-sponsored enterprise, and act 925 Substitute Bill No. 1104
	1065	+	LCO No. 6689 30 of 33
	1066	+
	1067	+	National Mortgage Association or any other agency or instrumentality 897
	1068	+	authorized by state or federal law to create a secondary market with 898
	1069	+	respect to extensions of credit of the type originated by the Connecticut 899
	1070	+	credit union, or (B) subject to the approval of the commissioner, relate 900
	1071	+	to extensions of credit originated by the Connecticut credit union and 901
	1072	+	are guaranteed or insured by a financial guaranty insurance company 902
	1073	+	or comparable private entity; 903
	1074	+	(16) Establish a charitable fund, either in the form of a charitable trust 904
	1075	+	or a nonprofit corporation to assist in making charitable contributions, 905
	1076	+	provided (A) the trust or nonprofit corporation is exempt from federal 906
	1077	+	income taxation and may accept charitable contributions under Section 907
	1078	+	501 of the Internal Revenue Code of 1986, or any subsequent 908
	1079	+	corresponding internal revenue code of the United States, as from time 909
	1080	+	to time amended, (B) the trust or nonprofit corporation's operations are 910
	1081	+	disclosed fully to the commissioner upon request, and (C) the trust 911
	1082	+	department of the credit union or one or more directors or members of 912
	1083	+	senior management of the credit union act as trustees or directors of the 913
	1084	+	fund; 914
	1085	+	(17) In the discretion of a majority of its governing board, make 915
	1086	+	contributions or gifts to or for the use of any corporation, trust or 916
	1087	+	community chest, fund or foundation created or organized under the 917
	1088	+	laws of the United States or of this state and organized and operated 918
	1089	+	exclusively for charitable, educational or public welfare purposes, or of 919
	1090	+	any hospital which is located in this state and which is exempt from 920
	1091	+	federal income taxes and to which contributions are deductible under 921
	1092	+	Section 501(c) of the Internal Revenue Code of 1986, or any subsequent 922
	1093	+	corresponding internal revenue code of the United States, as from time 923
	1094	+	to time amended; 924
	1095	+	(18) Subject to the provisions of section 36a-455b, sell, pledge or 925
	1096	+	assign any or all of its outstanding extensions of credit to any other 926
	1097	+	lending institution, credit union service organization or quasi-927
	1098	+	governmental entity and any government-sponsored enterprise, and act 928
	1099	+	as collecting, remitting and servicing agent in connection with any such 929 Raised Bill No. 1104
1117	1100
1118	1101
1119		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1120		-	R01-SB.docx }
1121		-	31 of 33
1122	1102
1123		-	as collecting, remitting and servicing agent in connection with any such 926
1124		-	extension of credit and charge for its acts as agent. Any such credit union 927
1125		-	may purchase the minimum amount of capital stock of such entity or 928
1126		-	enterprise if required by that entity or enterprise to be purchased in 929
1127		-	connection with the sale, pledge or assignment of extensions of credit to 930
1128		-	that entity or enterprise and may hold and dispose of such stock, 931
1129		-	provided that with respect to purchases of stock of a credit union service 932
1130		-	organization, the Connecticut credit union shall not exceed the 933
1131		-	limitations of section 36a-459a. A Connecticut credit union may 934
1132		-	purchase one or more outstanding extensions of credit from any other 935
1133		-	lending institution and any federally-recognized Native American tribe, 936
1134		-	provided there exists a formal written agreement with tribal 937
1135		-	government to permit the credit union to service and collect on such 938
1136		-	extensions of credit; 939
1137		-	(19) Subject to the provisions of section 36a-455b, sell a participating 940
1138		-	interest in any or all of its outstanding extensions of credit to and 941
1139		-	purchase a participating interest in any or all of the outstanding 942
1140		-	extensions of credit of any financial institution or credit union service 943
1141		-	organization pursuant to an appropriate written participation and 944
1142		-	servicing agreement to be signed by all parties involved in such 945
1143		-	transaction; 946
1144		-	(20) With the approval of the commissioner, join the Federal Home 947
1145		-	Loan Bank System and borrow funds as provided under federal law; 948
1146		-	(21) Subject to the provisions of section 36a-455b, sell all or part of its 949
1147		-	assets, other than extensions of credit, to other lending institutions, 950
1148		-	purchase all or part of the assets, other than extensions of credit, of other 951
1149		-	lending institutions, and assume all or part of the shares and the 952
1150		-	liabilities of any other credit union or out-of-state credit union; 953
1151		-	(22) With the prior written approval of the commissioner, engage in 954
1152		-	closely related activities, unless the commissioner determines that any 955
1153		-	such activity shall be conducted by a credit union service organization 956
1154		-	of the Connecticut credit union, utilizing such organizational, structural 957 Substitute Bill No. 1104
	1103	+	LCO No. 6689 31 of 33
	1104	+
	1105	+	extension of credit and charge for its acts as agent. Any such credit union 930
	1106	+	may purchase the minimum amount of capital stock of such entity or 931
	1107	+	enterprise if required by that entity or enterprise to be purchased in 932
	1108	+	connection with the sale, pledge or assignment of extensions of credit to 933
	1109	+	that entity or enterprise and may hold and dispose of such stock, 934
	1110	+	provided that with respect to purchases of stock of a credit union service 935
	1111	+	organization, the Connecticut credit union shall not exceed the 936
	1112	+	limitations of section 36a-459a. A Connecticut credit union may 937
	1113	+	purchase one or more outstanding extensions of credit from any other 938
	1114	+	lending institution and any federally-recognized Native American tribe, 939
	1115	+	provided there exists a formal written agreement with tribal 940
	1116	+	government to permit the credit union to service and collect on such 941
	1117	+	extensions of credit; 942
	1118	+	(19) Subject to the provisions of section 36a-455b, sell a participating 943
	1119	+	interest in any or all of its outstanding extensions of credit to and 944
	1120	+	purchase a participating interest in any or all of the outstanding 945
	1121	+	extensions of credit of any financial institution or credit union service 946
	1122	+	organization pursuant to an appropriate written participation and 947
	1123	+	servicing agreement to be signed by all parties involved in such 948
	1124	+	transaction; 949
	1125	+	(20) With the approval of the commissioner, join the Federal Home 950
	1126	+	Loan Bank System and borrow funds as provided under federal law; 951
	1127	+	(21) Subject to the provisions of section 36a-455b, sell all or part of its 952
	1128	+	assets, other than extensions of credit, to other lending institutions, 953
	1129	+	purchase all or part of the assets, other than extensions of credit, of other 954
	1130	+	lending institutions, and assume all or part of the shares and the 955
	1131	+	liabilities of any other credit union or out-of-state credit union; 956
	1132	+	(22) With the prior written approval of the commissioner, engage in 957
	1133	+	closely related activities, unless the commissioner determines that any 958
	1134	+	such activity shall be conducted by a credit union service organization 959
	1135	+	of the Connecticut credit union, utilizing such organizational, structural 960
	1136	+	or other safeguards as the commissioner may require, in order to protect 961 Raised Bill No. 1104
1155	1137
1156	1138
1157		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1158		-	R01-SB.docx }
1159		-	32 of 33
1160	1139
1161		-	or other safeguards as the commissioner may require, in order to protect 958
1162		-	the Connecticut credit union from exposure to loss. As used in this 959
1163		-	subdivision, "closely related activities" means those activities that are 960
1164		-	closely related, convenient and necessary to the business of a 961
1165		-	Connecticut credit union, are reasonably related to the operation of a 962
1166		-	Connecticut credit union or are financial in nature including, but not 963
1167		-	limited to, business and professional services, data processing, courier 964
1168		-	and messenger services, credit-related activities, consumer services, 965
1169		-	services related to real estate, financial consulting, tax planning and 966
1170		-	preparation, community development activities, or any activities 967
1171		-	reasonably related to such activities; 968
1172		-	(23) Engage in any activity that a federal credit union or out-of-state 969
1173		-	credit union may be authorized to engage in under state or federal law, 970
1174		-	provided the Connecticut credit union file with the commissioner prior 971
1175		-	written notice of its intention to engage in such activity. Such notice shall 972
1176		-	include a description of the activity, a description of the financial impact 973
1177		-	of the activity on the Connecticut credit union, citation of the legal 974
1178		-	authority to engage in the activity under state or federal law, a 975
1179		-	description of any limitations or restrictions imposed on such activity 976
1180		-	under state or federal law, and any other information that the 977
1181		-	commissioner may require. The Connecticut credit union may engage 978
1182		-	in any such activity unless the commissioner disapproves such activity 979
1183		-	not later than thirty days after the notice is filed. The commissioner may 980
1184		-	adopt regulations in accordance with chapter 54 to ensure that any such 981
1185		-	activity is conducted in a safe and sound manner with adequate 982
1186		-	consumer protections. The provisions of this subdivision do not 983
1187		-	authorize a Connecticut credit union or a Connecticut credit union 984
1188		-	service organization to sell title insurance; 985
1189		-	(24) (A) Partner with a community development corporation, as 986
1190		-	described in section 1 of this act, and be designated as a community 987
1191		-	development credit union in accordance with the provisions of section 988
1192		-	2 of this act, (B) if so designated, engage in any activity authorized for a 989
1193		-	community development credit union under sections 1 and 2 of this act, 990 Substitute Bill No. 1104
	1140	+	LCO No. 6689 32 of 33
	1141	+
	1142	+	the Connecticut credit union from exposure to loss. As used in this 962
	1143	+	subdivision, "closely related activities" means those activities that are 963
	1144	+	closely related, convenient and necessary to the business of a 964
	1145	+	Connecticut credit union, are reasonably related to the operation of a 965
	1146	+	Connecticut credit union or are financial in nature including, but not 966
	1147	+	limited to, business and professional services, data processing, courier 967
	1148	+	and messenger services, credit-related activities, consumer services, 968
	1149	+	services related to real estate, financial consulting, tax planning and 969
	1150	+	preparation, community development activities, or any activities 970
	1151	+	reasonably related to such activities; 971
	1152	+	(23) Engage in any activity that a federal credit union or out-of-state 972
	1153	+	credit union may be authorized to engage in under state or federal law, 973
	1154	+	provided the Connecticut credit union file with the commissioner prior 974
	1155	+	written notice of its intention to engage in such activity. Such notice shall 975
	1156	+	include a description of the activity, a description of the financial impact 976
	1157	+	of the activity on the Connecticut credit union, citation of the legal 977
	1158	+	authority to engage in the activity under state or federal law, a 978
	1159	+	description of any limitations or restrictions imposed on such activity 979
	1160	+	under state or federal law, and any other information that the 980
	1161	+	commissioner may require. The Connecticut credit union may engage 981
	1162	+	in any such activity unless the commissioner disapproves such activity 982
	1163	+	not later than thirty days after the notice is filed. The commissioner may 983
	1164	+	adopt regulations in accordance with chapter 54 to ensure that any such 984
	1165	+	activity is conducted in a safe and sound manner with adequate 985
	1166	+	consumer protections. The provisions of this subdivision do not 986
	1167	+	authorize a Connecticut credit union or a Connecticut credit union 987
	1168	+	service organization to sell title insurance; 988
	1169	+	(24) (A) Partner with a community development corporation, as 989
	1170	+	described in section 1 of this act, and be designated as a community 990
	1171	+	development credit union in accordance with the provisions of section 991
	1172	+	2 of this act, (B) if so designated, engage in any activity authorized for a 992
	1173	+	community development credit union under sections 1 and 2 of this act, 993
	1174	+	and (C) issue social impact bonds in accordance with subdivision (5) of 994
	1175	+	subsection (c) of section 2 of this act. 995 Raised Bill No. 1104
1194	1176
1195	1177
1196		-	LCO {\\PRDFS1\SCOUSERS\FORZANOF\WS\2021SB-01104-
1197		-	R01-SB.docx }
1198		-	33 of 33
1199	1178
1200		-	~~and (C) issue social impact bonds in accordance with subdivision (5)~~ of ~~991~~
1201		-	~~subsection (c) of section 2 of this act. 992~~
	1179	+	LCO No. 6689 33 of 33
	1180	+
1202	1181		This act shall take effect as follows and shall amend the following
1203	1182		sections:
1204	1183
1205	1184		Section 1 from passage New section
1206	1185		Sec. 2 from passage New section
1207	1186		Sec. 3 from passage New section
1208	1187		Sec. 4 from passage New section
1209	1188		Sec. 5 from passage New section
1210	1189		Sec. 6 from passage New section
1211	1190		Sec. 7 from passage 12-408(1)
1212	1191		Sec. 8 from passage 12-408
1213	1192		Sec. 9 from passage 36a-455a
1214	1193
1215		-	Statement of Legislative Commissioners:
1216		-	In Section 1(a), the first sentence was rewritten for accuracy; Section
1217		-	1(b)(1) was rewritten for clarity; in Sections 2(c)(5) and 3(j), references to
1218		-	"federal qualified opportunity zones" were changed to "federally
1219		-	designated opportunity zones" and "federal opportunity zones",
1220		-	respectively, for statutory consistency; in Section 5, the first sentence
1221		-	was rewritten for accuracy; in Sections 6 and 7, references to "Cannabis
1222		-	Control Commission" were changed to "Department of Consumer
1223		-	Protection" for accuracy; and in Section 7, "initial deposit" was changed
1224		-	to "initial remittance" for accuracy.
1225		-
1226		-	FIN Joint Favorable Subst. -LCO
	1194	+	Statement of Purpose:
	1195	+	To implement certain community restoration and revitalization efforts
	1196	+	through the establishment of community development corporations,
	1197	+	community development credit unions and community impact zones,
	1198	+	using tax revenue from the sale of cannabis and cannabis products and
	1199	+	deposits in lieu of taxes payments.
	1200	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	1201	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	1202	+	underlined.]
1227	1203