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