Senate Bill No. 1255 aims to expand the eligibility criteria for the Community Bank and Community Credit Union Investment Program established by the State Treasurer. The bill proposes to replace the existing definition of "community bank" by allowing participation from out-of-state banks, as defined in section 36a-2, and reinstates federal credit unions, which were previously excluded by Public Act 23-126. The new legal language specifies that a "community bank" now includes both in-state and out-of-state banks, while a "community credit union" is defined as either a Connecticut credit union or a federal credit union, also as per section 36a-2.

The bill's effective date is set for July 1, 2025, and it allows the State Treasurer to invest up to $300 million in these financial institutions, which are expected to provide loans and banking services to underserved markets. The fiscal impact of these changes is uncertain, as it will depend on the level of participation and investment returns generated by the expanded program. The bill was reported favorably by the Banking Committee with unanimous support.

Statutes affected:
Raised Bill: 3-24j
BA Joint Favorable: 3-24j
File No. 170: 3-24j