Substitute Senate Bill No. 1256, also known as Public Act No. 25-104, revises the organization and administration of financial institutions in Connecticut, with an effective date of July 1, 2025. Key changes include an increase in the conditional preliminary approval fee for establishing a Connecticut bank from $15,000 to $20,000, while exempting interim banks from this fee. The bill also modifies the criteria for approving bank applications, emphasizing the need for public interest and the qualifications of proposed directors and officers. New considerations for the approving authority include the population of the area served, the competitive impact on existing services, and market needs. Additionally, the bill outlines the process for amending certificates of incorporation and issuing temporary and final certificates of authority for banks.

The legislation introduces provisions for various types of banks, including bankers' banks, community banks, and community development banks, with specific requirements for organization and operation. Community banks must have a minimum equity capital of $3 million, while community development banks can be organized by the state or in collaboration with others, exempting them from application fees and franchise taxes. The bill also establishes regulations for innovation banks, which cannot accept retail deposits and must inform depositors that their funds are not FDIC insured. Furthermore, it modifies the approval process for bank office relocations and clarifies the duties of receivers for banks and credit unions in liquidation, particularly for innovation banks. Overall, the bill aims to enhance regulatory oversight and streamline the banking process in Connecticut.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 254:
Public Act No. 25-104: