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, charitable contributions, and capital requirements. The bill repeals Section 36a-435b and introduces updated definitions, including an expanded definition of "immediate family member" and the addition of terms like "insider" and "loan officer." It also refines the definition of "shared service center" and modifies regulations regarding nonmember payments, allowing credit unions to accept payments from nonmembers under specific conditions, including joint account holders and governmental entities. Community development financial institutions are granted broader acceptance of nonmember payments, subject to a total cap.

Furthermore, 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 expands the definition of "member business loan" and allows credit unions to make charitable contributions up to a certain limit without board approval. The legislation also mandates a written conflict of interest policy for transactions involving insiders and their immediate family members, while allowing preferential credit terms under a board-established policy. Additionally, the definition of "net worth" is revised to include retained earnings and exclude the allowance for loan and lease losses, with the previous reference to "regular reserves" deleted. These changes are set to take effect on July 1, 2025.

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