Substitute Senate Bill No. 1398 seeks to strengthen community reinvestment efforts by banks and credit unions in Connecticut, with a particular emphasis on supporting low- and moderate-income neighborhoods, as well as minority-owned and women-owned businesses. The bill introduces new definitions for "minority," "minority-owned business," and "women-owned business," clarifying the demographics and ownership structures that the legislation aims to assist. It mandates that banks assess their community credit needs and delineate their assessment areas in accordance with the federal Community Reinvestment Act (CRA), ensuring that these targeted groups are not excluded. The bill also modifies the evaluation process for banks' performance, requiring the commissioner to prepare a public performance evaluation that rates compliance with community reinvestment standards, while protecting sensitive information through a confidential section.

Additionally, the bill amends the approval process for banking transactions, requiring applicants with ratings below "outstanding" to submit plans demonstrating how they will meet the banking needs of all community residents, including minority- and women-owned businesses. It emphasizes the need for banks to provide adequate services to these groups and mandates that plans be available for public inspection and comment. The bill repeals and replaces certain subsections of sections 36a-30, 36a-32, and 36a-34 of the general statutes, effective October 1, 2025, to implement these changes. Overall, sSB1398 aims to enhance accountability and ensure equitable access to banking services for diverse community needs.

Statutes affected:
Raised Bill:
BA Joint Favorable Substitute:
File No. 292: