Substitute Senate Bill No. 1398 aims to strengthen community reinvestment efforts by banks and credit unions in Connecticut, with a particular focus on supporting low- and moderate-income neighborhoods, as well as minority-owned and women-owned businesses. The bill introduces new definitions, including "minority," "minority-owned business," and "women-owned business," which clarify the demographics targeted for support. It mandates that the commissioner assess each bank's performance in meeting the credit needs of these communities and requires banks to delineate their assessment areas accordingly. The evaluation process is modified to include a written assessment of each bank's community reinvestment performance, which will consist of both public and confidential sections, ensuring transparency while protecting sensitive information.

Additionally, the bill modifies existing language by deleting references to "residents" and replacing it with "of such resulting entity," broadening the scope of community service requirements. It emphasizes compliance with the federal Community Reinvestment Act (CRA) and mandates that banks provide adequate services to all community members, particularly targeting low-income, minority-owned, and women-owned businesses. The bill also allows for exemptions from plan submissions for eligible entities and ensures that transactions do not lead to monopolistic practices in the banking sector. Overall, sSB1398 seeks to enhance accountability and equitable access to banking services for underserved populations, with an effective date set for October 1, 2025.

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