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, operational viability, and qualified leadership. New considerations for the approving authority include the population served, competitive impact, and market needs, although these do not apply to innovation banks. Additionally, the bill outlines processes for amending incorporation certificates and business plans, as well as requirements for issuing certificates of authority.

The legislation further establishes provisions for bankers' banks, community banks, and community development banks, allowing for their organization and operation under specific criteria. Community banks must have a minimum equity capital of $3 million, while community development banks can be organized by the state without application fees or franchise taxes. The bill also introduces regulations for innovation banks, which cannot accept retail deposits and must disclose that their deposits are not FDIC insured. Other amendments include new criteria for bank office relocations, a reduced objection period for bank applications, and clarified duties for receivers of innovation banks. Overall, the bill aims to streamline banking organization processes while ensuring regulatory oversight and consumer protection.

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