Connecticut 2025 Regular Session

Connecticut Senate Bill SB01398 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2	2
3		-	LCO 1 of 13
	3	+	LCO No. 5379 1 of 18
4	4
5		-	General Assembly ~~Substitute~~ Bill No. 1398
	5	+	General Assembly Raised Bill No. 1398
6	6		January Session, 2025
	7	+	LCO No. 5379
7	8
	9	+
	10	+	Referred to Committee on BANKING
	11	+
	12	+
	13	+	Introduced by:
	14	+	(BA)
8	15
9	16
10	17
11	18
12	19		AN ACT CONCERNING COMMUNITY REINVESTMENT BY BANKS
13		-	AND CREDIT UNIONS.
	20	+	AND CREDIT UNIONS AND REPORTS, RECORDS, INSPECTIONS
	21	+	AND EXAMINATIONS OF MORTGAGE LENDERS.
14	22		Be it enacted by the Senate and House of Representatives in General
15	23		Assembly convened:
16	24
17	25		Section 1. Subsections (a) to (c), inclusive, of section 36a-30 of the 1
18	26		general statutes are repealed and the following is substituted in lieu 2
19	27		thereof (Effective October 1, 2025): 3
20	28		(a) As used in sections 36a-30 to 36a-33, inclusive, as amended by this 4
21	29		act, unless the context otherwise requires: 5
22	30		(1) "Bank" means any bank or out-of-state bank that maintains in this 6
23	31		state a branch as defined in section 36a-410. "Bank" does not include 7
24	32		special purpose banks that do not perform commercial or retail banking 8
25	33		services in which credit is granted to the public in the ordinary course 9
26	34		of business, other than as an incident to their specialized operations, 10
27	35		including, but not limited to, banker's banks and banks that engage only 11
28	36		in one or more of the following activities: Providing cash management 12
29	37		controlled disbursement services or serving as correspondent banks, 13
30	38		trust companies or clearing agents. 14
	39	+	Raised Bill No. 1398
	40	+
	41	+
	42	+
	43	+	LCO No. 5379 2 of 18
	44	+
31	45		(2) "Federal CRA" means (A) the federal Community Reinvestment 15
32	46		Act of 1977, 12 USC Section 2901 et seq., as from time to time amended, 16
33		-	and (B) the regulations implementing said act adopted by the federal 17 Substitute Bill No. 1398
34		-
35		-
36		-	LCO 2 of 13
37		-
	47	+	and (B) the regulations implementing said act adopted by the federal 17
38	48		financial supervisory agencies as set forth in 12 CFR Part 25, 12 CFR Part 18
39	49		228, 12 CFR Part 345 and 12 CFR Part 563e, as from time to time 19
40	50		amended, and as applicable to the specific type of bank. 20
41	51		(3) "Federal financial supervisory agency" means the Office of the 21
42	52		Comptroller of the Currency, the Board of Governors of the Federal 22
43	53		Reserve System, the Federal Deposit Insurance Corporation, the Office 23
44	54		of Thrift Supervision and any successor to any of the foregoing agencies, 24
45	55		as applicable to the specific type of bank. 25
46	56		(4) "Minority" means an individual whose race is defined as other 26
47	57		than white, or whose ethnicity is defined as Hispanic or Latino by the 27
48	58		federal Office of Management and Budget for use by the Bureau of 28
49	59		Census of the United States Department of Commerce. 29
50		-	(5) "Minority-owned business" means any business of which ~~at least~~ 30
51		-	~~fifty-one~~ per cent of the capital stock, if any, or assets is owned by a 31
	60	+	(5) "Minority-owned business" means any business of which fifty-one 30
	61	+	per cent or more of the capital stock, if any, or assets are owned by a 31
52	62		minority who is active in the daily affairs of the business and has the 32
53	63		power to direct the management and policies of the business. 33
54		-	(6) "Women-owned business" means any business of which ~~at least~~ 34
55		-	~~fifty-one~~ per cent of the capital stock, if any, or assets is owned by a 35
	64	+	(6) "Women-owned business" means any business of which fifty-one 34
	65	+	per cent or more of the capital stock, if any, or assets are owned by a 35
56	66		woman who is active in the daily affairs of the business and has the 36
57	67		power to direct the management and policies of the business. 37
58	68		(b) The commissioner shall assess the record of each bank in 38
59	69		satisfying its continuing and affirmative obligations to help meet the 39
60	70		credit needs of its local communities, including low and moderate-40
61		-	income neighborhoods, minority-owned businesses and women-owned 41
62		-	businesses, consistent with the safe and sound operation of such banks, 42
63		-	and shall provide for the consideration of such records in connection 43
64		-	with any application listed in subsection (c) of section 36a-32. 44
65		-	(c) Each bank shall, in accordance with the provisions of federal CRA 45
66		-	and without excluding low and moderate-income neighborhoods, 46
67		-	minority-owned businesses or women-owned businesses, delineate the 47
68		-	local community or communities that comprise its entire community 48 Substitute Bill No. 1398
	71	+	income neighborhoods and minority or women-owned businesses, 41
	72	+	consistent with the safe and sound operation of such banks, and shall 42
	73	+	provide for the consideration of such records in connection with any 43
	74	+	application listed in subsection (c) of section 36a-32. 44
	75	+	Raised Bill No. 1398
69	76
70	77
71		-	LCO 3 of 13
72	78
73		-	within this state or delineate one or more assessment areas, as 49
74		-	applicable, within which the commissioner shall evaluate the bank's 50
75		-	record of helping to meet the credit needs of its entire community in this 51
76		-	state. The commissioner shall review the delineation for compliance 52
77		-	with federal CRA and this subsection in connection with an examination 53
78		-	of the bank under section 36a-17. 54
	79	+	LCO No. 5379 3 of 18
	80	+
	81	+	(c) Each bank shall, in accordance with the provisions of federal CRA 45
	82	+	and without excluding low and moderate-income neighborhoods or 46
	83	+	minority or women-owned businesses, delineate the local community 47
	84	+	or communities that comprise its entire community within this state or 48
	85	+	delineate one or more assessment areas, as applicable, within which the 49
	86	+	commissioner shall evaluate the bank's record of helping to meet the 50
	87	+	credit needs of its entire community in this state. The commissioner 51
	88	+	shall review the delineation for compliance with federal CRA and this 52
	89	+	subsection in connection with an examination of the bank under section 53
	90	+	36a-17. 54
79	91		Sec. 2. Subsections (a) and (b) of section 36a-32 of the general statutes 55
80	92		are repealed and the following is substituted in lieu thereof (Effective 56
81	93		October 1, 2025): 57
82	94		(a) In connection with the examination of a bank under section 36a-58
83	95		17, the commissioner shall assess the record of the performance of the 59
84	96		bank in helping to meet the credit needs of its entire community, 60
85		-	including low and moderate-income neighborhoods, minority~~-owned~~ 61
86		-	~~businesses and~~ women-owned businesses, consistent with the safe and 62
87		-	~~sound operation~~ of the bank. The commissioner shall assess the 63
88		-	~~community reinvestment~~ performance of a bank utilizing the applicable 64
89		-	~~methodology set forth in~~ federal CRA. In addition, the commissioner 65
90		-	~~shall consider the following~~ in assessing a bank's record of performance: 66
	97	+	including low and moderate-income neighborhoods and minority or 61
	98	+	women-owned businesses, consistent with the safe and sound operation 62
	99	+	of the bank. The commissioner shall assess the community reinvestment 63
	100	+	performance of a bank utilizing the applicable methodology set forth in 64
	101	+	federal CRA. In addition, the commissioner shall consider the following 65
	102	+	in assessing a bank's record of performance: 66
91	103		(1) The bank's record of offering escrow accounts for purposes of 67
92	104		compliance with subsection (h) of section 47a-21; 68
93	105		(2) Efforts of the bank to work with delinquent residential mortgage 69
94	106		customers who are unemployed or underemployed to facilitate a 70
95	107		resolution of the delinquency; and 71
96	108		(3) Written comments received by the commissioner. 72
97	109		(b) (1) Upon the conclusion of the assessment required under 73
98	110		subsection (a) of this section, the commissioner shall prepare a written 74
99		-	evaluation of the bank's record of meeting the credit needs of its entire 75
100		-	community, including low and moderate-income neighborhoods, 76
101		-	minority-owned businesses and women-owned businesses. Each 77
102		-	community reinvestment performance evaluation prepared under this 78
103		-	subsection shall have a public section and a confidential section. 79 Substitute Bill No. 1398
	111	+	Raised Bill No. 1398
104	112
105	113
106		-	LCO 4 of 13
107	114
	115	+	LCO No. 5379 4 of 18
	116	+
	117	+	evaluation of the bank's record of meeting the credit needs of its entire 75
	118	+	community, including low and moderate-income neighborhoods and 76
	119	+	minority or women-owned businesses. Each community reinvestment 77
	120	+	performance evaluation prepared under this subsection shall have a 78
	121	+	public section and a confidential section. 79
108	122		(2) The public section of the performance evaluation shall (A) state 80
109	123		the commissioner's assessment of the community reinvestment 81
110	124		performance of the bank utilizing the applicable methodology set forth 82
111		-	in federal CRA, (B) discuss the facts supporting such assessment, and 83
112		-	~~(C)~~ contain the bank's rating and a statement describing the basis for the 84
	125	+	in federal CRA, (B) discuss the facts supporting such assessment and (C) 83
	126	+	contain the bank's rating and a statement describing the basis for the 84
113	127		rating. The rating shall be one of the following: (i) Outstanding record 85
114	128		of meeting community credit needs; (ii) satisfactory record of meeting 86
115	129		community credit needs; (iii) needs to improve record of meeting 87
116	130		community credit needs; or (iv) substantial noncompliance in meeting 88
117	131		community credit needs. The commissioner shall furnish a copy of the 89
118	132		public portion of the performance evaluation to the bank upon its 90
119	133		completion. 91
120	134		(3) The confidential section of the performance evaluation shall 92
121	135		contain all references that identify any customer of the bank, any 93
122	136		employee or officer of the bank, or any person that has provided 94
123	137		information in confidence to the commissioner or to any federal 95
124	138		financial supervisory agency. The confidential section shall also contain 96
125	139		any statements obtained or made by the commissioner in the course of 97
126	140		an examination under section 36a-17 which, in the judgment of the 98
127	141		commissioner, are too sensitive or speculative in nature to disclose to 99
128	142		the bank or the public. The confidential section may be disclosed, in 100
129	143		whole or in part, to the bank if the commissioner determines that such 101
130	144		disclosure will promote the objectives of sections 36a-30 to 36a-33, 102
131	145		inclusive, as amended by this act, provided any such disclosure shall 103
132	146		not identify a person that has provided information in confidence to the 104
133	147		commissioner or to any federal financial supervisory agency. 105
134	148		Sec. 3. Subsections (a) to (c), inclusive, of section 36a-34 of the general 106
	149	+	Raised Bill No. 1398
	150	+
	151	+
	152	+
	153	+	LCO No. 5379 5 of 18
	154	+
135	155		statutes are repealed and the following is substituted in lieu thereof 107
136	156		(Effective October 1, 2025): 108
137	157		(a) As used in subsection (b) of this section: 109
138	158		(1) "Eligible entity" means any entity that (A) received a composite 110
139		-	rating of one or two under the Uniform Financial Institutions Rating 111 Substitute Bill No. 1398
140		-
141		-
142		-	LCO 5 of 13
143		-
	159	+	rating of one or two under the Uniform Financial Institutions Rating 111
144	160		System as a result of its most recent safety and soundness examination; 112
145	161		(B) received a compliance rating of one or two on its most recent 113
146	162		compliance examination; (C) received a satisfactory or better rating on 114
147	163		its most recent community reinvestment performance evaluation; (D) is 115
148	164		well capitalized, as defined in 12 CFR 324.403(b)(1), as amended from 116
149	165		time to time; (E) is not subject to a cease and desist order, consent order, 117
150	166		prompt correction action directive, written agreement, memorandum of 118
151	167		understanding or other administrative agreement with its primary state 119
152	168		or federal banking regulator; and (F) is not subject to any formal or 120
153	169		informal administrative action by its primary state or federal banking 121
154	170		regulator. 122
155	171		(2) "Entity" means the applicant or applicants except, in the case of an 123
156	172		approval pursuant to section 36a-411, "entity" means the subsidiaries of 124
157	173		the applicant holding company. 125
158	174		(3) "Federal CRA" has the same meaning as provided in subsection 126
159	175		(a) of section 36a-30, as amended by this act. 127
160	176		(4) "Minority" means an individual whose race is defined as other 128
161	177		than white, or whose ethnicity is defined as Hispanic or Latino by the 129
162	178		federal Office of Management and Budget for use by the Bureau of 130
163	179		Census of the United States Department of Commerce. 131
164		-	(5) "Minority-owned business" means any business of which ~~at least~~ 132
165		-	~~fifty-one~~ per cent of the capital stock, if any, or assets is owned by a 133
	180	+	(5) "Minority-owned business" means any business of which fifty-one 132
	181	+	per cent or more of the capital stock, if any, or assets are owned by a 133
166	182		minority who is active in the daily affairs of the business and has the 134
167	183		power to direct the management and policies of the business. 135
	184	+	Raised Bill No. 1398
	185	+
	186	+
	187	+
	188	+	LCO No. 5379 6 of 18
	189	+
168	190		[(4)] (6) "Resulting entity" means: (A) In the case of an approval 136
169	191		pursuant to section 36a-145 and subdivision (2) of subsection (a) of 137
170	192		section 36a-412, the applicant; (B) in the case of an approval pursuant to 138
171	193		section 36a-125, the resulting Connecticut bank; (C) in the case of an 139
172	194		approval pursuant to section 36a-181, the Connecticut bank; (D) in the 140
173	195		case of an approval pursuant to section 36a-411, the bank to be acquired 141
174	196		or established; and (E) in the case of an approval pursuant to 142
175		-	subdivision (1) of subsection (a) of section 36a-412, the bank to be 143 Substitute Bill No. 1398
176		-
177		-
178		-	LCO 6 of 13
179		-
	197	+	subdivision (1) of subsection (a) of section 36a-412, the bank to be 143
180	198		acquired or the resulting bank. 144
181		-	(7) "Women-owned business" means any business of which ~~at least~~ 145
182		-	~~fifty-one~~ per cent of the capital stock, if any, or assets is owned by a 146
	199	+	(7) "Women-owned business" means any business of which fifty-one 145
	200	+	per cent or more of the capital stock, if any, or assets are owned by a 146
183	201		woman who is active in the daily affairs of the business and has the 147
184	202		power to direct the management and policies of the business. 148
185	203		(b) The commissioner shall not grant any approval under section 36a-149
186	204		125, subsections (b), (c) and (d) of section 36a-145, section 36a-181, 150
187	205		section 36a-411 or subdivisions (1) and (2) of subsection (a) of section 151
188	206		36a-412 unless the commissioner finds, in accordance with regulations 152
189	207		adopted pursuant to chapter 54, that (1) based on the most recent 153
190	208		applicable performance evaluation and any related information 154
191	209		required by the commissioner, the entity has a record of compliance 155
192	210		with the requirements of federal CRA, sections 36a-30 to 36a-33, 156
193	211		inclusive, as amended by this act, to the extent applicable, and 157
194	212		applicable consumer protection laws; and (2) except as otherwise 158
195	213		provided in this subsection, if the entity, and in the case of an approval 159
196	214		pursuant to section 36a-411, the bank or any subsidiary bank of the 160
197	215		Connecticut holding company, received any overall rating other than an 161
198	216		assigned rating of "outstanding" on its most recent applicable 162
199	217		community reinvestment performance evaluation, the resulting entity 163
200	218		will provide adequate services to meet the banking needs of all of the 164
201	219		community [residents] of such resulting entity, including low-income 165
202		-	residents, [and] moderate-income residents, minority-owned 166
203		-	businesses and women-owned businesses to the extent permitted by its 167
204		-	charter, in accordance with a plan submitted by the applicant to the 168
205		-	commissioner, in such form and containing such information as the 169
206		-	commissioner may require, or, if acceptable to the commissioner, in 170
207		-	accordance with an approved strategic plan prepared under federal 171
208		-	CRA, or the relevant portion thereof, that is submitted by the applicant 172
209		-	to the commissioner. Upon receiving any such plan, the commissioner 173
210		-	shall make the plan available for public inspection and comment at the 174
211		-	Department of Banking and cause notice of its submission and 175
212		-	availability for inspection and comment to be published in the 176
213		-	department's weekly bulletin. With the concurrence of the 177 Substitute Bill No. 1398
	220	+	residents, [and] moderate-income residents and minority or women-166
	221	+	owned businesses to the extent permitted by its charter, in accordance 167
	222	+	with a plan submitted by the applicant to the commissioner, in such 168
	223	+	Raised Bill No. 1398
214	224
215	225
216		-	LCO 7 of 13
217	226
218		-	commissioner, the applicant or applicants shall publish, in the form of a 178
219		-	legal advertisement in a newspaper having a substantial circulation in 179
220		-	the area, notice of such plan's submission and availability for public 180
221		-	inspection and comment. The notice shall state that the inspection and 181
222		-	comment period will last for a period of thirty days from the date of 182
223		-	publication. The commissioner shall not make such finding until the 183
224		-	expiration of such thirty-day period. In making such finding, the 184
225		-	commissioner shall, unless clearly inapplicable, consider, among other 185
226		-	factors, whether the plan identifies specific unmet credit and consumer 186
227		-	banking needs in the local community and specifies how such needs will 187
228		-	be satisfied, provides for sufficient distribution of banking services 188
229		-	among branches or satellite devices, or both, located in low-income 189
230		-	neighborhoods, contains adequate assurances that banking services will 190
231		-	be offered on a nondiscriminatory basis and demonstrates a 191
232		-	commitment to extend credit for housing, small business, minority-192
233		-	owned businesses, women-owned businesses and consumer purposes 193
234		-	in low-income neighborhoods. The submission of such plan shall not be 194
235		-	required in the case of an approval under subsection (d) of section 36a-195
236		-	145, provided, the commissioner may require the filing of such 196
237		-	information in lieu of a plan as the commissioner deems appropriate. If 197
238		-	the commissioner determines that an applicant is an eligible entity, the 198
239		-	commissioner may (A) exempt such applicant from the requirement that 199
240		-	such applicant file a plan, or (B) require such information in lieu of a 200
241		-	plan as the commissioner deems appropriate. Except with respect to an 201
242		-	approval pursuant to section 36a-145 and section 36a-181, the 202
243		-	commissioner shall not approve the transaction if the transaction would 203
244		-	result in a monopoly, or would be in furtherance of any combination or 204
245		-	conspiracy to monopolize or attempt to monopolize the business of 205
246		-	banking in this state or if the commissioner determines that the effect of 206
247		-	the proposed transaction may be to substantially lessen competition, or 207
248		-	would tend to create a monopoly, or would be in restraint of trade, 208
249		-	unless the commissioner finds that the anticompetitive effects of the 209
250		-	proposed transaction are clearly outweighed in the public interest by 210
251		-	the probable effect of the transaction in meeting the convenience and 211
252		-	needs of the community to be served. 212 Substitute Bill No. 1398
	227	+	LCO No. 5379 7 of 18
	228	+
	229	+	form and containing such information as the commissioner may require, 169
	230	+	or, if acceptable to the commissioner, in accordance with an approved 170
	231	+	strategic plan prepared under federal CRA, or the relevant portion 171
	232	+	thereof, that is submitted by the applicant to the commissioner. Upon 172
	233	+	receiving any such plan, the commissioner shall make the plan available 173
	234	+	for public inspection and comment at the Department of Banking and 174
	235	+	cause notice of its submission and availability for inspection and 175
	236	+	comment to be published in the department's weekly bulletin. With the 176
	237	+	concurrence of the commissioner, the applicant or applicants shall 177
	238	+	publish, in the form of a legal advertisement in a newspaper having a 178
	239	+	substantial circulation in the area, notice of such plan's submission and 179
	240	+	availability for public inspection and comment. The notice shall state 180
	241	+	that the inspection and comment period will last for a period of thirty 181
	242	+	days from the date of publication. The commissioner shall not make 182
	243	+	such finding until the expiration of such thirty-day period. In making 183
	244	+	such finding, the commissioner shall, unless clearly inapplicable, 184
	245	+	consider, among other factors, whether the plan identifies specific 185
	246	+	unmet credit and consumer banking needs in the local community and 186
	247	+	specifies how such needs will be satisfied, provides for sufficient 187
	248	+	distribution of banking services among branches or satellite devices, or 188
	249	+	both, located in low-income neighborhoods, contains adequate 189
	250	+	assurances that banking services will be offered on a nondiscriminatory 190
	251	+	basis and demonstrates a commitment to extend credit for housing, 191
	252	+	small business, minority or women-owned business and consumer 192
	253	+	purposes in low-income neighborhoods. The submission of such plan 193
	254	+	shall not be required in the case of an approval under subsection (d) of 194
	255	+	section 36a-145, provided, the commissioner may require the filing of 195
	256	+	such information in lieu of a plan as the commissioner deems 196
	257	+	appropriate. If the commissioner determines that an applicant is an 197
	258	+	eligible entity, the commissioner may (A) exempt such applicant from 198
	259	+	the requirement that such applicant file a plan, or (B) require such 199
	260	+	information in lieu of a plan as the commissioner deems appropriate. 200
	261	+	Except with respect to an approval pursuant to section 36a-145 and 201
	262	+	section 36a-181, the commissioner shall not approve the transaction if 202
	263	+	Raised Bill No. 1398
253	264
254	265
255		-	LCO 8 of 13
256	266
	267	+	LCO No. 5379 8 of 18
	268	+
	269	+	the transaction would result in a monopoly, or would be in furtherance 203
	270	+	of any combination or conspiracy to monopolize or attempt to 204
	271	+	monopolize the business of banking in this state or if the commissioner 205
	272	+	determines that the effect of the proposed transaction may be to 206
	273	+	substantially lessen competition, or would tend to create a monopoly, 207
	274	+	or would be in restraint of trade, unless the commissioner finds that the 208
	275	+	anticompetitive effects of the proposed transaction are clearly 209
	276	+	outweighed in the public interest by the probable effect of the 210
	277	+	transaction in meeting the convenience and needs of the community to 211
	278	+	be served. 212
257	279		(c) The commissioner shall not make a determination stating that the 213
258	280		commissioner does not disapprove an offer, invitation, request, 214
259	281		agreement or acquisition pursuant to section 36a-185 unless the 215
260	282		commissioner finds, in accordance with regulations adopted pursuant 216
261	283		to chapter 54, that (1) based on the most recent applicable performance 217
262	284		evaluation and any related information required by the commissioner, 218
263	285		the acquiring person, if such person is a bank or out-of-state bank, and 219
264	286		the acquiring person's subsidiaries, if such person is a holding company, 220
265	287		has a record of compliance with the requirements of federal CRA, 221
266	288		sections 36a-30 to 36a-33, inclusive, as amended by this act, to the extent 222
267	289		applicable, and applicable consumer protection laws; and (2) except as 223
268	290		otherwise provided in this subsection, if the bank or any banking 224
269	291		subsidiary of the holding company referred to in the acquisition 225
270	292		statement received any overall rating other than an assigned rating of 226
271	293		"outstanding" on its most recent applicable community reinvestment 227
272	294		performance evaluation, such bank or banking subsidiary will provide 228
273	295		adequate services to meet the banking needs of all of the community 229
274	296		[residents] of such bank or banking subsidiary, including low-income 230
275		-	residents, [and] moderate-income residents, minority-owned 231
276		-	businesses and women-owned businesses to the extent permitted by its 232
277		-	charter or their charters. If the acquiring person is not a natural person, 233
278		-	or if the acquiring person is a natural person who would be the 234
279		-	beneficial owner of twenty-five per cent or more of any class of voting 235
280		-	securities of the bank or holding company referred to in the acquisition 236
281		-	statement, the finding as to the adequacy of services to be provided shall 237
282		-	be based on a plan submitted by the acquiring person to the 238
283		-	commissioner, in such form and containing such information as the 239
284		-	commissioner may require, or, if acceptable to the commissioner, in 240
285		-	accordance with an approved strategic plan prepared under federal 241
286		-	CRA, or the relevant portion thereof, that is submitted by the acquiring 242
287		-	person to the commissioner. Upon receiving any such plan, the 243
288		-	commissioner shall make the plan available for public inspection and 244
289		-	comment at the Department of Banking and cause notice of its 245
290		-	submission and availability for inspection and comment to be published 246
291		-	in the department's weekly bulletin. With the concurrence of the 247 Substitute Bill No. 1398
	297	+	residents, [and] moderate-income residents and minority or women-231
	298	+	owned businesses to the extent permitted by its charter or their charters. 232
	299	+	If the acquiring person is not a natural person, or if the acquiring person 233
	300	+	is a natural person who would be the beneficial owner of twenty-five 234
	301	+	per cent or more of any class of voting securities of the bank or holding 235
	302	+	Raised Bill No. 1398
292	303
293	304
294		-	LCO 9 of 13
295	305
296		-	commissioner, the acquiring person shall publish, in the form of a legal 248
297		-	advertisement in a newspaper having a substantial circulation in the 249
298		-	area, notice of such plan's submission and availability for public 250
299		-	inspection and comment. The notice shall state that the inspection and 251
300		-	comment period will last for a period of thirty days from the date of 252
301		-	publication. The commissioner shall not make such finding until the 253
302		-	expiration of such thirty-day period. In making such finding, the 254
303		-	commissioner shall consider, among other factors, whether the plan 255
304		-	identifies specific unmet credit and consumer banking needs in the local 256
305		-	community and specifies how such needs will be satisfied, provides for 257
306		-	sufficient distribution of banking services among branches or satellite 258
307		-	devices, or both, located in low-income neighborhoods, contains 259
308		-	adequate assurances that banking services will be offered on a 260
309		-	nondiscriminatory basis and demonstrates a commitment to extend 261
310		-	credit for housing, small business, minority-owned businesses, women-262
311		-	owned businesses and consumer purposes in low -income 263
312		-	neighborhoods. The commissioner may exempt an acquiring person 264
313		-	from the requirement that such acquiring person file a plan if the 265
314		-	commissioner determines that the bank or banking subsidiary referred 266
315		-	to in the acquisition statement is an eligible entity. If the acquiring 267
316		-	person is a natural person who would be the beneficial owner of less 268
317		-	than twenty-five per cent of all classes of voting securities of the bank or 269
318		-	holding company referred to in the acquisition statement, the 270
319		-	commissioner shall make the finding as to adequacy of services to be 271
320		-	provided based on the commitment of the acquiring person to use the 272
321		-	acquiring person's best efforts to cause such bank or banking 273
322		-	subsidiaries of such holding company to provide such services. The 274
323		-	commissioner shall not make a determination stating that the 275
324		-	commissioner does not disapprove such offer, invitation, request, 276
325		-	agreement or acquisition if such offer, invitation, request, agreement or 277
326		-	acquisition would result in a monopoly, or would be in furtherance of 278
327		-	any combination or conspiracy to monopolize or attempt to monopolize 279
328		-	the business of banking in this state or if the commissioner should 280
329		-	determine that the effect of the proposed offer, invitation, request, 281
330		-	agreement or acquisition may be to substantially lessen competition, or 282 Substitute Bill No. 1398
	306	+	LCO No. 5379 9 of 18
	307	+
	308	+	company referred to in the acquisition statement, the finding as to the 236
	309	+	adequacy of services to be provided shall be based on a plan submitted 237
	310	+	by the acquiring person to the commissioner, in such form and 238
	311	+	containing such information as the commissioner may require, or, if 239
	312	+	acceptable to the commissioner, in accordance with an approved 240
	313	+	strategic plan prepared under federal CRA, or the relevant portion 241
	314	+	thereof, that is submitted by the acquiring person to the commissioner. 242
	315	+	Upon receiving any such plan, the commissioner shall make the plan 243
	316	+	available for public inspection and comment at the Department of 244
	317	+	Banking and cause notice of its submission and availability for 245
	318	+	inspection and comment to be published in the department's weekly 246
	319	+	bulletin. With the concurrence of the commissioner, the acquiring 247
	320	+	person shall publish, in the form of a legal advertisement in a newspaper 248
	321	+	having a substantial circulation in the area, notice of such plan's 249
	322	+	submission and availability for public inspection and comment. The 250
	323	+	notice shall state that the inspection and comment period will last for a 251
	324	+	period of thirty days from the date of publication. The commissioner 252
	325	+	shall not make such finding until the expiration of such thirty-day 253
	326	+	period. In making such finding, the commissioner shall consider, among 254
	327	+	other factors, whether the plan identifies specific unmet credit and 255
	328	+	consumer banking needs in the local community and specifies how such 256
	329	+	needs will be satisfied, provides for sufficient distribution of banking 257
	330	+	services among branches or satellite devices, or both, located in low-258
	331	+	income neighborhoods, contains adequate assurances that banking 259
	332	+	services will be offered on a nondiscriminatory basis and demonstrates 260
	333	+	a commitment to extend credit for housing, small business, minority or 261
	334	+	women-owned business and consumer purposes in low-income 262
	335	+	neighborhoods. The commissioner may exempt an acquiring person 263
	336	+	from the requirement that such acquiring person file a plan if the 264
	337	+	commissioner determines that the bank or banking subsidiary referred 265
	338	+	to in the acquisition statement is an eligible entity. If the acquiring 266
	339	+	person is a natural person who would be the beneficial owner of less 267
	340	+	than twenty-five per cent of all classes of voting securities of the bank or 268
	341	+	holding company referred to in the acquisition statement, the 269
	342	+	Raised Bill No. 1398
331	343
332	344
333		-	LCO 10 of 13
334	345
335		-	would tend to create a monopoly, or would be in restraint of trade, 283
336		-	unless the commissioner finds that the anticompetitive effects of the 284
337		-	proposed transaction are clearly outweighed in the public interest by 285
338		-	the probable effect of the transaction in meeting the convenience and 286
339		-	needs of the community to be served. 287
340		-	Sec. 4. Section 36a-37 of the general statutes is repealed and the 288
341		-	following is substituted in lieu thereof (Effective October 1, 2025): 289
342		-	As used in sections 36a-37 to 36a-37e, inclusive, as amended by this 290
343		-	act: 291
344		-	(1) "Assessment area" means one or more of the geographic areas as 292
345		-	delineated by a community credit union that (A) consist of one or more 293
346		-	metropolitan statistical areas or one or more contiguous political 294
347		-	subdivisions, including, but not limited to, counties, cities or towns, (B) 295
348		-	include geographies in which the community credit union has its 296
349		-	principal office, subsidiary offices and share-taking automated teller 297
350		-	machines, and (C) include the surrounding geographies in which the 298
351		-	community credit union originates or purchases a substantial portion of 299
352		-	its loans. 300
353		-	(2) "Community credit union" means a Connecticut credit union that 301
354		-	has ten million dollars or more in total assets and the membership of 302
355		-	which is limited to persons within a well-defined community, 303
356		-	neighborhood or rural district as provided in subsection (a) of section 304
357		-	36a-438a. 305
358		-	(3) "Community reinvestment performance" means the performance 306
359		-	of a community credit union in helping to meet the credit needs of its 307
360		-	entire community, including low-income and moderate-income 308
361		-	neighborhoods, minority-owned businesses and women-owned 309
362		-	businesses. 310
363		-	(4) "Minority" means an individual whose race is defined as other 311
364		-	than white, or whose ethnicity is defined as Hispanic or Latino by the 312
365		-	federal Office of Management and Budget for use by the Bureau of 313 Substitute Bill No. 1398
	346	+	LCO No. 5379 10 of 18
	347	+
	348	+	commissioner shall make the finding as to adequacy of services to be 270
	349	+	provided based on the commitment of the acquiring person to use the 271
	350	+	acquiring person's best efforts to cause such bank or banking 272
	351	+	subsidiaries of such holding company to provide such services. The 273
	352	+	commissioner shall not make a determination stating that the 274
	353	+	commissioner does not disapprove such offer, invitation, request, 275
	354	+	agreement or acquisition if such offer, invitation, request, agreement or 276
	355	+	acquisition would result in a monopoly, or would be in furtherance of 277
	356	+	any combination or conspiracy to monopolize or attempt to monopolize 278
	357	+	the business of banking in this state or if the commissioner should 279
	358	+	determine that the effect of the proposed offer, invitation, request, 280
	359	+	agreement or acquisition may be to substantially lessen competition, or 281
	360	+	would tend to create a monopoly, or would be in restraint of trade, 282
	361	+	unless the commissioner finds that the anticompetitive effects of the 283
	362	+	proposed transaction are clearly outweighed in the public interest by 284
	363	+	the probable effect of the transaction in meeting the convenience and 285
	364	+	needs of the community to be served. 286
	365	+	Sec. 4. Section 36a-37 of the general statutes is repealed and the 287
	366	+	following is substituted in lieu thereof (Effective October 1, 2025): 288
	367	+	As used in sections 36a-37 to 36a-37e, inclusive, as amended by this 289
	368	+	act: 290
	369	+	(1) "Assessment area" means one or more of the geographic areas as 291
	370	+	delineated by a community credit union that (A) consist of one or more 292
	371	+	metropolitan statistical areas or one or more contiguous political 293
	372	+	subdivisions, including, but not limited to, counties, cities or towns, (B) 294
	373	+	include geographies in which the community credit union has its 295
	374	+	principal office, subsidiary offices and share-taking automated teller 296
	375	+	machines, and (C) include the surrounding geographies in which the 297
	376	+	community credit union originates or purchases a substantial portion of 298
	377	+	its loans. 299
	378	+	(2) "Community credit union" means a Connecticut credit union that 300
	379	+	Raised Bill No. 1398
366	380
367	381
368		-	LCO 11 of 13
369	382
370		-	~~Census~~ of ~~the United States Department of Commerce. 314~~
371		-	~~(5) "Minority-owned business" means any business of which at least 315~~
372		-	~~fifty-one per cent~~ of ~~the capital stock, if any, or assets is owned by a 316~~
373		-	~~minority who~~ is ~~active in the daily affairs of the business and has the 317~~
374		-	~~power to direct the management and policies~~ of ~~the business.~~ ~~318~~
375		-	~~(6) "Women-owned business" means any business of which at least 319~~
376		-	~~fifty-one per cent of~~ the ~~capital stock,~~ ~~if any, or assets is owned by a 320~~
377		-	~~woman who is active~~ in the ~~daily affairs~~ of ~~the business and has the 321~~
378		-	~~power to direct the management~~ and ~~policies of the business. 322~~
379		-	~~Sec~~. ~~5. Subsections (a) to (c), inclusive, of section 36a-37a of the 323~~
380		-	~~general statutes are repealed and the following~~ is ~~substituted in lieu 324~~
381		-	~~thereof (Effective October 1~~, ~~2025): 325~~
382		-	~~(a) Each community credit union shall satisfy its continuing~~ and ~~326~~
383		-	~~affirmative obligation to help meet~~ the ~~credit needs~~ of ~~its community,~~ ~~327~~
384		-	~~including low-income and moderate-income neighborhoods,~~ minority-~~328~~
385		-	~~owned businesses and women-owned~~ ~~businesses, consistent with~~ the ~~329~~
386		-	~~safe~~ and ~~sound operation of such community credit union. 330~~
387		-	~~(b) Not later than six months following July 1,~~ ~~2001, each community 331~~
388		-	~~credit union shall delineate one or more assessment areas within~~ which ~~332~~
389		-	~~the commissioner shall evaluate~~ the ~~community credit union's 333~~
390		-	~~community reinvestment performance~~ in ~~this state~~ and ~~shall file such 334~~
391		-	~~delineations with~~ the ~~commissioner~~. ~~An assessment area shall consist 335~~
392		-	~~only~~ of ~~whole geographies,~~ ~~and may not (1) reflect illegal 336~~
393		-	~~discrimination, (2) arbitrarily exclude low-income~~ ~~or moderate-income~~ ~~337~~
394		-	~~geographies~~, ~~or (3) extend substantially beyond a consolidated 338~~
395		-	~~metropolitan statistical area boundary or beyond a state boundary,~~ ~~339~~
396		-	~~unless~~ the ~~assessment area is located in a multistate metropolitan 340~~
397		-	~~statistical area.~~ ~~A community credit union may adjust the boundaries of 341~~
398		-	~~its assessment areas to include only~~ the ~~portion of a political subdivision 342~~
399		-	~~that it reasonably can be expected to serve. A~~ community credit union ~~343~~
400		-	~~shall immediately file an amendment with the commissioner reflecting 344~~
401		-	~~an adjustment of the boundaries of an assessment area. 345 Substitute~~ Bill No. 1398
	383	+	LCO No. 5379 11 of 18
	384	+
	385	+	has ten million dollars or more in total assets and the membership of 301
	386	+	which is limited to persons within a well-defined community, 302
	387	+	neighborhood or rural district as provided in subsection (a) of section 303
	388	+	36a-438a. 304
	389	+	(3) "Community reinvestment performance" means the performance 305
	390	+	of a community credit union in helping to meet the credit needs of its 306
	391	+	entire community, including low-income and moderate-income 307
	392	+	neighborhoods and minority or women-owned businesses. 308
	393	+	(4) "Minority" means an individual whose race is defined as other 309
	394	+	than white, or whose ethnicity is defined as Hispanic or Latino by the 310
	395	+	federal Office of Management and Budget for use by the Bureau of 311
	396	+	Census of the United States Department of Commerce. 312
	397	+	(5) "Minority-owned business" means any business of which fifty-one 313
	398	+	per cent or more of the capital stock, if any, or assets are owned by a 314
	399	+	minority who is active in the daily affairs of the business and has the 315
	400	+	power to direct the management and policies of the business. 316
	401	+	(6) "Women-owned business" means any business of which fifty-one 317
	402	+	per cent or more of the capital stock, if any, or assets are owned by a 318
	403	+	woman who is active in the daily affairs of the business and has the 319
	404	+	power to direct the management and policies of the business. 320
	405	+	Sec. 5. Subsections (a) to (c), inclusive, of section 36a-37a of the 321
	406	+	general statutes are repealed and the following is substituted in lieu 322
	407	+	thereof (Effective October 1, 2025): 323
	408	+	(a) Each community credit union shall satisfy its continuing and 324
	409	+	affirmative obligation to help meet the credit needs of its community, 325
	410	+	including low-income and moderate-income neighborhoods and 326
	411	+	minority or women-owned businesses, consistent with the safe and 327
	412	+	sound operation of such community credit union. 328
	413	+	(b) Not later than six months following July 1, 2001, each community 329
	414	+	Raised Bill No. 1398
402	415
403	416
404		-	LCO 12 of 13
405	417
406		-	(c) The commissioner shall assess periodically the community 346
407		-	reinvestment performance of a community credit union consistent with 347
408		-	the safe and sound operation of the community credit union. The 348
409		-	commissioner shall assess the community reinvestment performance of 349
410		-	such community credit union based on: (1) The community credit 350
411		-	union's record of helping to meet the credit needs of its assessment area 351
412		-	or areas through qualified investments that benefit its assessment area 352
413		-	or areas or a broader state-wide or regional area that includes its 353
414		-	assessment area or areas; (2) the community credit union's record of 354
415		-	helping to meet the credit needs of its assessment area or areas, by 355
416		-	analyzing both the availability and effectiveness of its systems for 356
417		-	delivering retail credit union services and the extent and innovativeness 357
418		-	of its community development services; (3) loan-to-share ratio given the 358
419		-	community credit union's size and financial condition, credit needs of 359
420		-	the assessment area or areas, other lending-related activities, 360
421		-	considering seasonal variations, as used in 12 CFR 228.26; (4) percentage 361
422		-	of total loans and other lending-related activities within the assessment 362
423		-	area or areas; (5) record of lending and other lending-related activities 363
424		-	to borrowers of different income levels, minority-owned businesses, 364
425		-	women-owned businesses and businesses and farms of different sizes; 365
426		-	(6) geographic distribution of loans; (7) action taken in response to 366
427		-	written complaints with respect to community reinvestment 367
428		-	performance; (8) efforts of the community credit union to work with 368
429		-	delinquent residential mortgage customers who are unemployed or 369
430		-	underemployed to facilitate a resolution of the delinquency; and (9) 370
431		-	written comments received by the commissioner. 371
	418	+	LCO No. 5379 12 of 18
	419	+
	420	+	credit union shall delineate one or more assessment areas within which 330
	421	+	the commissioner shall evaluate the community credit union's 331
	422	+	community reinvestment performance in this state and shall file such 332
	423	+	delineations with the commissioner. An assessment area shall consist 333
	424	+	only of whole geographies, and may not (1) reflect illegal 334
	425	+	discrimination, (2) arbitrarily exclude low-income or moderate-income 335
	426	+	geographies, or (3) extend substantially beyond a consolidated 336
	427	+	metropolitan statistical area boundary or beyond a state boundary, 337
	428	+	unless the assessment area is located in a multistate metropolitan 338
	429	+	statistical area. A community credit union may adjust the boundaries of 339
	430	+	its assessment areas to include only the portion of a political subdivision 340
	431	+	that it reasonably can be expected to serve. A community credit union 341
	432	+	shall immediately file an amendment with the commissioner reflecting 342
	433	+	an adjustment of the boundaries of an assessment area. 343
	434	+	(c) The commissioner shall assess periodically the community 344
	435	+	reinvestment performance of a community credit union consistent with 345
	436	+	the safe and sound operation of the community credit union. The 346
	437	+	commissioner shall assess the community reinvestment performance of 347
	438	+	such community credit union based on: (1) The community credit 348
	439	+	union's record of helping to meet the credit needs of its assessment area 349
	440	+	or areas through qualified investments that benefit its assessment area 350
	441	+	or areas or a broader state-wide or regional area that includes its 351
	442	+	assessment area or areas; (2) the community credit union's record of 352
	443	+	helping to meet the credit needs of its assessment area or areas, by 353
	444	+	analyzing both the availability and effectiveness of its systems for 354
	445	+	delivering retail credit union services and the extent and innovativeness 355
	446	+	of its community development services; (3) loan-to-share ratio given the 356
	447	+	community credit union's size and financial condition, credit needs of 357
	448	+	the assessment area or areas, other lending-related activities, 358
	449	+	considering seasonal variations, as used in 12 CFR 228.26; (4) percentage 359
	450	+	of total loans and other lending-related activities within the assessment 360
	451	+	area or areas; (5) record of lending and other lending-related activities 361
	452	+	to borrowers of different income levels, minority or women-owned 362
	453	+	Raised Bill No. 1398
	454	+
	455	+
	456	+
	457	+	LCO No. 5379 13 of 18
	458	+
	459	+	businesses and businesses and farms of different sizes; (6) geographic 363
	460	+	distribution of loans; (7) action taken in response to written complaints 364
	461	+	with respect to community reinvestment performance; (8) efforts of the 365
	462	+	community credit union to work with delinquent residential mortgage 366
	463	+	customers who are unemployed or underemployed to facilitate a 367
	464	+	resolution of the delinquency; and (9) written comments received by the 368
	465	+	commissioner. 369
	466	+	Sec. 6. (NEW) (Effective October 1, 2025) (a) As used in this section: 370
	467	+	(1) "Commissioner" means the Banking Commissioner; 371
	468	+	(2) "Licensee" means a mortgage lender licensed under section 36a-372
	469	+	489 of the general statutes; 373
	470	+	(3) "Mortgage lender" has the same meaning as provided in section 374
	471	+	36a-485 of the general statutes; and 375
	472	+	(4) "Residential mortgage loan" has the same meaning as provided in 376
	473	+	section 36a-485 of the general statutes. 377
	474	+	(b) (1) Each licensee shall annually, on or before a date determined by 378
	475	+	the commissioner, file a report with the commissioner and such records 379
	476	+	pertaining to the business conducted by the licensee in the state during 380
	477	+	the preceding calendar year as the commissioner may require. Such 381
	478	+	report shall be in a form and manner prescribed by the commissioner. 382
	479	+	A licensee that fails to file or amend such report within fifteen days after 383
	480	+	receiving notice from the commissioner requesting such report or 384
	481	+	amendment shall be fined fifty dollars for each day during which such 385
	482	+	failure continues, unless the licensee demonstrates justifiable cause for 386
	483	+	such failure. 387
	484	+	(2) A licensee shall keep such records, in a form and manner 388
	485	+	prescribed by the commissioner, as necessary to enable the 389
	486	+	commissioner to determine whether such licensee is conducting 390
	487	+	business in accordance with the provisions of this section, part I of 391
	488	+	Raised Bill No. 1398
	489	+
	490	+
	491	+
	492	+	LCO No. 5379 14 of 18
	493	+
	494	+	chapter 668 of the general statutes, any regulation promulgated by the 392
	495	+	commissioner under this section or part I of chapter 668 of the general 393
	496	+	statutes and any other law or regulation applicable to the conduct of the 394
	497	+	licensee for which such licensee is licensed under section 36a-489 of the 395
	498	+	general statutes. Each such licensee shall preserve all such records for a 396
	499	+	period prescribed by the commissioner. 397
	500	+	(3) Records required pursuant to this section shall be in addition to 398
	501	+	the records required under section 36a-493 of the general statutes. 399
	502	+	(4) Service of a subpoena for records required pursuant to this section 400
	503	+	by delivery to an office of a licensee located within the state shall be 401
	504	+	deemed to have been served at the location, whether within or outside 402
	505	+	the state, where the original records are kept or maintained. 403
	506	+	(c) (1) The commissioner shall inspect the records required pursuant 404
	507	+	to this section, section 36a-493 of the general statutes, part I of chapter 405
	508	+	668 of the general statutes, any regulation promulgated by the 406
	509	+	commissioner under this section or part I of chapter 668 of the general 407
	510	+	statutes and any other law or regulation applicable to the conduct of the 408
	511	+	licensee for which such licensee is licensed under section 36a-489 of the 409
	512	+	general statutes. For the purposes of such inspection, the commissioner 410
	513	+	shall have access to the offices, places of business, books, accounts, 411
	514	+	papers, records and files of licensees. The commissioner may require the 412
	515	+	attendance and testimony of any person whom the commissioner deems 413
	516	+	necessary relative to the conduct of such licensee's business. The total 414
	517	+	cost for any such inspection shall be paid by the licensee not later than 415
	518	+	thirty days after receipt of an invoice from the commissioner, including, 416
	519	+	but not limited to, any expense necessary for travel outside the state for 417
	520	+	the purpose of conducting such inspection. 418
	521	+	(2) If, during the course of such inspection, the commissioner 419
	522	+	determines that a licensee has made not less than fifty residential 420
	523	+	mortgage loans in the preceding calendar year, the commissioner shall 421
	524	+	examine such licensee to assess such licensee's compliance with fair 422
	525	+	Raised Bill No. 1398
	526	+
	527	+
	528	+
	529	+	LCO No. 5379 15 of 18
	530	+
	531	+	lending laws, including, but not limited to, the federal Equal Credit 423
	532	+	Opportunity Act, 15 USC 1691 et seq., as amended from time to time, 424
	533	+	and the Home Mortgage Disclosure Act set forth in sections 36a-735 to 425
	534	+	36a-744, inclusive, of the general statutes. Such examination shall also 426
	535	+	include, but need not be limited to, an evaluation of (A) such licensee's 427
	536	+	origination of loans and other efforts to assist low and moderate income 428
	537	+	individuals to be able to acquire or remain in affordable housing at rates 429
	538	+	and terms that are reasonable in consideration of the licensee's history 430
	539	+	of lending to similarly situated individuals, the availability of mortgage 431
	540	+	loan products suitable for low and moderate income individuals and 432
	541	+	safe and sound business practices, (B) any pattern regarding such 433
	542	+	licensee's loan origination that shows an undue concentration or system 434
	543	+	of lending resulting in the loss of affordable housing, (C) such licensee's 435
	544	+	efforts to facilitate resolutions of delinquencies on residential mortgage 436
	545	+	loans, (D) such licensee's efforts to ensure public notice of examinations 437
	546	+	of such licensee and the right of interested parties to submit to the 438
	547	+	commissioner written comments related to such examinations, and (E) 439
	548	+	any other efforts of such licensee to comply with fair lending laws and 440
	549	+	to meet the residential mortgage loan needs of communities in the state. 441
	550	+	(3) Upon the completion of such examination, the commissioner shall 442
	551	+	prepare a written evaluation of such licensee's record of performance, 443
	552	+	which shall be open to public inspection upon request. Such written 444
	553	+	evaluation shall include (A) the information used to assign the licensee's 445
	554	+	descriptive rating pursuant to subdivision (4) of this subsection, (B) the 446
	555	+	conclusions made by the commissioner, (C) the facts supporting such 447
	556	+	conclusions, and (D) the descriptive rating assigned to the licensee on 448
	557	+	the basis of such information, conclusions and facts. 449
	558	+	(4) On the basis of such examination, the commissioner shall assign 450
	559	+	the licensee one of the following descriptive ratings: (A) Outstanding 451
	560	+	record of performance in meeting the residential mortgage loan needs 452
	561	+	of communities in the state, (B) high satisfactory record of performance 453
	562	+	in meeting the residential mortgage loan needs of communities in the 454
	563	+	state, (C) satisfactory record of performance in meeting the residential 455
	564	+	Raised Bill No. 1398
	565	+
	566	+
	567	+
	568	+	LCO No. 5379 16 of 18
	569	+
	570	+	mortgage loan needs of communities in the state, (D) needs to improve 456
	571	+	the record of performance in meeting the residential mortgage loan 457
	572	+	needs of communities in the state, or (E) substantial noncompliance in 458
	573	+	meeting the residential mortgage loan needs of communities in the state. 459
	574	+	(5) Notwithstanding the provisions of this subsection, the 460
	575	+	commissioner may establish an alternative examination procedure for a 461
	576	+	licensee that, for the most recent examination, was assigned a rating of 462
	577	+	outstanding or high satisfactory as described in subparagraphs (A) and 463
	578	+	(B) of subdivision (4) of this subsection. 464
	579	+	(6) For the purposes of an examination conducted pursuant to this 465
	580	+	subsection, the commissioner shall not consider a loan origination or 466
	581	+	loan purchase with respect to a licensee if another licensee claims the 467
	582	+	same loan origination or loan purchase for the purposes of such other 468
	583	+	licensee's examination under this subsection. 469
	584	+	(7) The commissioner shall furnish a copy of records of an 470
	585	+	examination conducted pursuant to this subsection to a licensee for such 471
	586	+	licensee's use, provided such licensee shall not disclose such records to 472
	587	+	any other person, organization or agency without receiving prior 473
	588	+	written approval from the commissioner. 474
	589	+	(d) In considering an application from a licensee for a renewal of a 475
	590	+	license issued under section 36a-489 of the general statutes, the 476
	591	+	commissioner shall consider the written evaluation of such licensee's 477
	592	+	record of performance prepared pursuant to subdivision (3) of 478
	593	+	subsection (c) of this section. Such evaluation may provide a basis for 479
	594	+	the denial of such renewal application. 480
	595	+	(e) (1) The commissioner shall preserve a record of each investigation 481
	596	+	and examination of a licensee conducted pursuant to this section. All 482
	597	+	such records of investigations and examinations, information derived 483
	598	+	from such investigations and examinations or created in response to 484
	599	+	such investigations and examinations and any copies of such records 485
	600	+	and information (A) shall be confidential and privileged 486
	601	+	Raised Bill No. 1398
	602	+
	603	+
	604	+
	605	+	LCO No. 5379 17 of 18
	606	+
	607	+	communications, (B) shall not be subject to subpoena, and (C) shall not 487
	608	+	be deemed public records for the purposes of the Freedom of 488
	609	+	Information Act, as defined in section 1-200 of the general statutes. For 489
	610	+	the purpose of this subsection, such records of investigations and 490
	611	+	examinations include, but are not limited to, records of investigations 491
	612	+	and examinations conducted by a banking regulatory agency of the 492
	613	+	federal government or another state or a foreign government that are 493
	614	+	considered confidential by such agency or foreign government and are 494
	615	+	in the commissioner's possession. 495
	616	+	(2) The commissioner may furnish to a regulatory agency of the 496
	617	+	federal government or another state, a foreign country or a law 497
	618	+	enforcement agency any record of an investigation or examination of a 498
	619	+	licensee conducted pursuant to this section. 499
	620	+	(3) In any proceeding before a court, the court may issue a protective 500
	621	+	order in appropriate circumstances to protect the confidentiality of any 501
	622	+	such record and order that any such record on file with the court or filed 502
	623	+	in connection with the court proceeding be sealed and that the public be 503
	624	+	excluded from any portion of the proceeding at which any such record 504
	625	+	is disclosed. 505
	626	+	(f) The commissioner shall adopt regulations, in accordance with the 506
	627	+	provisions of chapter 54 of the general statutes, to carry out the 507
	628	+	provisions of this section. Such regulations may (1) provide for the 508
	629	+	suspension or revocation of a licensee's license for a violation of the 509
	630	+	provisions of this section, and (2) require licensees to record, copy or 510
	631	+	reproduce records required pursuant to this section, provided nothing 511
	632	+	in this section shall be construed to permit a licensee to destroy original 512
	633	+	records or documents required pursuant to this section, part I of chapter 513
	634	+	668 of the general statutes, any regulation promulgated by the 514
	635	+	commissioner under this section or part I of chapter 668 of the general 515
	636	+	statutes or any other law or regulation applicable to the conduct of the 516
	637	+	licensee for which such licensee is licensed under section 36a-489 of the 517
	638	+	general statutes. 518
	639	+	Raised Bill No. 1398
	640	+
	641	+
	642	+
	643	+	LCO No. 5379 18 of 18
	644	+
432	645		This act shall take effect as follows and shall amend the following
433	646		sections:
434	647
435	648		Section 1 October 1, 2025 36a-30(a) to (c)
436	649		Sec. 2 October 1, 2025 36a-32(a) and (b)
437	650		Sec. 3 October 1, 2025 36a-34(a) to (c)
438	651		Sec. 4 October 1, 2025 36a-37
439	652		Sec. 5 October 1, 2025 36a-37a(a) to (c)
440		-	~~Substitute Bill No~~. ~~1398~~
	653	+	Sec. 6 October 1, 2025 New section
441	654
	655	+	Statement of Purpose:
	656	+	To (1) define "minority", "minority-owned business" and "women-
	657	+	owned business" for the purposes of banking and credit union statutes
	658	+	concerning community reinvestment, (2) add various references to
	659	+	minority or women-owned businesses to banking and credit union
	660	+	statutes concerning community reinvestment, (3) require mortgage
	661	+	lenders to file certain reports and records, (4) require inspections of
	662	+	mortgage lenders, and (5) require examinations of certain mortgage
	663	+	lenders to assess such lenders' compliance with fair lending laws.
442	664
443		-	LCO 13 of 13
444		-
445		-	Statement of Legislative Commissioners:
446		-	In Sections 1(a)(5), 3(a)(5) and 4(5), the definition of "minority-owned
447		-	business" was redrafted for clarity; in Sections 1(a)(6), 3(a)(7) and 4(6),
448		-	the definition of "women-owned business" was redrafted for clarity; in
449		-	Sections 1(b) and (c), 2(a) and (b)(1), 3(b)(2) and (c)(2), 4(3) and 5(a) and
450		-	(c)(5), provisions concerning minority-owned businesses and women-
451		-	owned businesses were rewritten for clarity and internal consistency.
452		-
453		-	BA Joint Favorable Subst.
	665	+	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
	666	+	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
	667	+	underlined.]
454	668