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. The bill increases the conditional preliminary approval fee for expedited bank organization from $15,000 to $20,000, while exempting interim Connecticut banks from any fees. It also modifies the criteria for approving applications to establish a Connecticut bank, emphasizing the need for the proposed bank to serve the public interest and demonstrating the qualifications of its directors and officers. New factors for consideration include the population of the area served, the competitive effect on existing services, and the market area's convenience and needs, while clarifying that these considerations do not apply to innovation banks. The bill outlines the process for amending proposed certificates of incorporation and ensures transparency in the approval process.

Additionally, the bill introduces provisions for the establishment of bankers' banks, community banks, and community development banks, allowing for more flexibility in their organization and operation. It eliminates the application fee and franchise tax for community development banks and allows the State Treasurer to be the sole organizer of such banks. The bill sets a minimum equity capital requirement of $3 million for community banks and $5 million for innovation banks, which are prohibited from accepting retail deposits. It also modifies the asset deposit requirement for trust banks and innovation banks, increasing it from $1 million to $1.5 million. Furthermore, the bill revises the approval process for bank office relocations and reduces the objection period for bank applications from 30 days to 15 days, while clarifying the duties of receivers for banks and credit unions.

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