Senate Bill No. 1255, now Public Act No. 25-103, amends the definition of "community bank" and "community credit union" within the Connecticut General Statutes. The bill repeals the existing definition of "community bank," which previously included only state-chartered banks and trust companies, and replaces it with a broader definition that includes both in-state and out-of-state banks as defined in section 36a-2. Similarly, the definition of "community credit union" is updated to encompass Connecticut and federal credit unions, moving away from the previous, more restrictive definition that focused on cooperative, nonprofit institutions governed by a volunteer board.

These changes are set to take effect on July 1, 2025, and aim to modernize the investment program established by the State Treasurer by expanding the types of financial institutions that can be classified as community banks and credit unions. This legislative update reflects a shift towards inclusivity in the financial sector, allowing for a wider range of institutions to participate in community investment initiatives.

Statutes affected:
Raised Bill: 3-24j
BA Joint Favorable: 3-24j
File No. 170: 3-24j
Public Act No. 25-103: 3-24j