Substitute House Bill No. 7083, also known as Public Act No. 25-37, implements significant revisions to the credit union statutes in Connecticut, focusing on areas such as nonmember payments, member business loans, and capital requirements. The bill repeals Section 36a-435b and introduces updated definitions, including an expanded definition of "immediate family member" and new terms like "insider" and "loan officer." It also modifies the definition of "shared service center" to clarify operational requirements. Notably, the bill allows credit unions to accept payments from nonmembers under specific conditions, including payments from joint account holders, governmental entities, and federally-recognized Native American tribal governments, while also permitting community development financial institutions to accept payments from any nonmember, subject to a cap.

Additionally, the bill establishes new asset thresholds for credit unions, detailing minimum capital requirements based on total assets, and clarifies that public deposits will not count as nonmember payments. It revises definitions related to member business loans and charitable contributions, limiting the latter to a maximum of one ten-thousandth of net assets and requiring credit unions to adopt written conflict of interest policies. The bill also redefines "net worth" for credit unions, specifying that it will consist of retained earnings at the end of each dividend period, with provisions for low-income credit unions. Overall, these changes aim to enhance the regulatory framework for credit unions in Connecticut, promoting financial stability and ethical governance while ensuring compliance with updated operational standards.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 319:
File No. 822:
Public Act No. 25-37: