Substitute Senate Bill No. 1256, also known as Public Act No. 25-104, revises the organization and administration of financial institutions in Connecticut, set to take effect on July 1, 2025. Key changes include an increase in the conditional preliminary approval fee for establishing Connecticut banks from $15,000 to $20,000, while interim banks are exempt from fees. The bill also repeals and replaces several subsections of section 36a-70, emphasizing the necessity for new banks to serve the public interest and ensuring that proposed directors and officers are qualified. New criteria for the approving authority are introduced, focusing on factors such as the population of the service area and the competitive impact on existing financial services, with specific exemptions for innovation banks.

Additionally, the bill establishes provisions for bankers' banks, community banks, and community development banks, allowing for their organization under specific guidelines. It permits the state to be the sole organizer of community development banks, eliminating application fees and franchise taxes for state-organized banks. The bill also modifies the asset deposit requirement for innovation banks, increasing it from $1 million to $1.5 million, while removing phased deposit requirements for previously certified banks. Furthermore, it streamlines the approval process for bank office relocations and adjusts the duties of receivers for banks in liquidation, ensuring that the regulatory framework accommodates both traditional and innovative banking entities in Connecticut.

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