Connecticut SB 216: AN ACT CONCERNING THE COMMUNITY BANK AND CREDIT UNION INVESTMENT PROGRAM ESTABLISHED BY THE STATE TREASURER.

Bill Text

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General Assembly Raised Bill No. 216
February Session, 2026 LCO No. 1065

Referred to Committee on BANKING

Introduced by:
(BA)

AN ACT CONCERNING THE COMMUNITY BANK AND CREDIT UNION
INVESTMENT PROGRAM ESTABLISHED BY THE STATE
TREASURER.
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 Section 3-24k of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2026): 2
(a) The State Treasurer may establish a program under which the 3
State Treasurer may, based on cash availability, make available a pool 4
of funds not exceeding three hundred million dollars for investment 5
with eligible community banks and community credit unions. Such 6
funds shall be obtained from the state's operating cash managed by the 7
State Treasurer. 8
(b) (1) The State Treasurer shall establish eligibility criteria for any 9
program established under subsection (a) of this section. Such eligibility 10
criteria shall include, at a minimum, an asset limit for community banks 11
and community credit unions to participate in such program. Such asset 12
limit shall provide that: (A) During the period beginning July 1, 2023, 13
and ending September 29, 2024, no community bank or community 14

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credit union with assets exceeding two billion dollars may participate in 15
such program; and (B) beginning September 30, 2024, no community 16
bank or community credit union may participate in such program if 17
such community bank's or community credit union's assets exceed the 18
sum of (i) the preceding asset limit established by the State Treasurer, 19
and (ii) the median percentage loan growth of community banks and 20
community credit unions eligible for the program at the time when the 21
State Treasurer establishes such asset limit. As used in this subsection, 22
"median percentage loan growth" means the middle value representing 23
the percentage increase or decrease, as the case may be, in loan assets 24
over a period of time reflected on the balance sheet of a specified group 25
of lenders. 26
(2) Not later than July 1, 2024, and annually thereafter, the State 27
Treasurer shall provide to the Department of Banking a list of the 28
community banks and community credit unions that are eligible to 29
participate in such program at the time when the State Treasurer 30
provides each such list to the department. Not later than August 31, 31
2024, and annually thereafter, the Department of Banking shall provide 32
to the State Treasurer the median percentage loan growth of each such 33
community bank and community credit union. 34
(c) The State Treasurer shall establish a schedule for making such 35
investments with such banks and credit unions. 36
(d) The State Treasurer shall establish a [competitive bidding] 37
procedure under which such banks and credit unions may [compete] 38
apply for investment-related services under said program. Under such 39
procedure, the State Treasurer may accept rates for such investment-40
related services that are not greater than one hundred basis points below 41
the previous day's yield for an appropriately comparative United States 42
Treasury security with the same maturity date as the maturity date 43
applicable to such investment-related services, as determined by the 44
State Treasurer. 45
(e) The State Treasurer may establish capital standards for such banks 46

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and credit unions wishing to participate in said program. 47
This act shall take effect as follows and shall amend the following
sections:

Section 1 October 1, 2026 3-24k

BA Joint Favorable