Connecticut SB 218: AN ACT CONCERNING MEDICAID PENALTIES FOR AFTER-DISCOVERED ASSETS.

Bill Text

Senate Bill No. 218

Public Act No. 26-79

AN ACT CONCERNING THE COMMUNITY BANK AND CREDIT
UNION INVESTMENT PROGRAM, MORTGAGE PAYMENTS,
PENALTIES FOR VIOLATIONS OF RENTAL SECURITY DEPOSIT
REQUIREMENTS, CERTAIN APPROVALS BY THE BANKING
COMMISSIONER, CONNECTICUT BRANCH APPLICATIONS AND
SECURED CREDIT CARDS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:

Section 1. Section 3-24k of the general statutes is repealed and the
following is substituted in lieu thereof (Effective October 1, 2026):
(a) The State Treasurer may establish a program under which the
State Treasurer may, based on cash availability, make available a pool
of funds not exceeding three hundred million dollars for investment
with eligible community banks and community credit unions. Such
funds shall be obtained from the state's operating cash managed by the
State Treasurer.
(b) (1) The State Treasurer shall establish eligibility criteria for any
program established under subsection (a) of this section. Such eligibility
criteria shall include, at a minimum, an asset limit for community banks
and community credit unions to participate in such program. Such asset
limit shall provide that: (A) During the period beginning July 1, 2023,
and ending September 29, 2024, no community bank or community

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credit union with assets exceeding two billion dollars may participate in
such program; and (B) beginning September 30, 2024, no community
bank or community credit union may participate in such program if
such community bank's or community credit union's assets exceed the
sum of (i) the preceding asset limit established by the State Treasurer,
and (ii) the median percentage loan growth of community banks and
community credit unions eligible for the program at the time when the
State Treasurer establishes such asset limit. As used in this subsection,
"median percentage loan growth" means the middle value representing
the percentage increase or decrease, as the case may be, in loan assets
over a period of time reflected on the balance sheet of a specified group
of lenders.
(2) Not later than July 1, 2024, and annually thereafter, the State
Treasurer shall provide to the Department of Banking a list of the
community banks and community credit unions that are eligible to
participate in such program at the time when the State Treasurer
provides each such list to the department. Not later than August 31,
2024, and annually thereafter, the Department of Banking shall provide
to the State Treasurer the median percentage loan growth of each such
community bank and community credit union.
(c) The State Treasurer shall establish a schedule for making such
investments with such banks and credit unions.
(d) The State Treasurer shall establish a [competitive bidding]
procedure under which such banks and credit unions may [compete]
apply for investment-related services under said program. Under such
procedure, the State Treasurer may accept rates for such investment-
related services that are not greater than one hundred basis points below
the previous day's yield for an appropriately comparative United States
Treasury security with the same maturity date as the maturity date
applicable to such investment-related services, as determined by the
State Treasurer.

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(e) The State Treasurer may establish capital standards for such banks
and credit unions wishing to participate in said program.
Sec. 2. Subsection (i) of section 49-8a of the general statutes is repealed
and the following is substituted in lieu thereof (Effective October 1, 2026):
(i) (1) A mortgagee shall accept, as payment tendered for satisfaction
or partial satisfaction of a mortgage loan, a bank check, certified check,
attorney's clients' funds account check, title insurance company check,
wire transfer or any other form of payment authorized under federal
law.
(2) As used in this subdivision, (A) "mortgage loan" means a loan
secured by a mortgage on residential real property, which loan is
granted by a mortgagee to a mortgagor, (B) "mortgagee" means the
owner or servicer of the debt secured by a mortgage, (C) "mortgagor"
means any person obligated to repay a mortgage loan, (D) "residential
real property" means a one-to-four family dwelling, occupied as a
residence by a mortgagor, and (E) "prepayment" means a payment
toward the outstanding principal amount of a mortgage loan beyond
the monthly payment due on such mortgage loan. For a mortgage loan
made on or after January 1, 2027, a mortgagee shall accept a full or
partial prepayment from a mortgagor, which prepayment shall reduce,
in whole or in part, the amount of principal that a mortgagor owes on
the mortgage loan, provided the mortgagee may apply the prepayment
to an amount that is owed under the mortgage loan other than the
principal amount, as permitted by the terms of the mortgage loan. The
mortgagee shall apply