2010 Banking and Related Legislation
Each year, the Department of Banking, with the coordination of the Government Relations and Consumer Affairs Division, conducts an active legislative program. The following bills represent the agency's 2010 legislative proposals.
Department of Banking Proposal
An Act Applying the Provisions of the Connecticut Uniform Securities Act to the Requirement that Broker-Dealers Comply with the Currency and Foreign Transactions Reporting Act.
By law, securities broker-dealers must comply with the applicable provisions of the federal Currency and Foreign Transactions Reporting Act (CFTRA) and any regulations adopted under that act. The CFTRA, also known as the Bank Secrecy Act, is aimed at preventing money laundering.
This act applies various provisions of the state Uniform Securities Act to the requirement that broker-dealers comply with the CFTRA, extending the banking commissioner's enforcement authority against broker-dealers for lack of compliance with the federal law.
The act adds the CFTRA compliance requirement to the existing provisions under which the banking commissioner may deny, suspend, or revoke the registration of the broker-dealer or restrict or impose conditions on the securities or investment advisory activities upon a finding that (1) doing so is in the public interest and (2) the applicant or registrant (or certain affiliated persons) (a) willfully violated or failed to comply with the requirement or (b) willfully aided, abetted, counseled, commanded, induced, or procured such a violation. The act also allows the commissioner to summarily postpone or suspend registration, or require a registrant to take or not take certain actions in the interim in order to effectuate the law's purposes, pending proceedings for suspension, revocation, or refusal to renew a registration.
The act also adds the CFTRA compliance requirement to the existing provisions under which the banking commissioner may order a violator to pay restitution, disgorge illegal gains, or both, as well as a fine of up to $100,000 per violation. Willful violators may face up to two years' imprisonment.
The act also provides that a real property securities dealer legally required to be licensed and to obtain a permit is exempt under state law from complying with CFTRA and any regulations adopted under that act.
The act makes various other minor related changes.
Effective Date: Upon passage
Public Act 10-181 - HB 5270
An Act Concerning Foreclosure Mediation.
This act makes changes to the judicial foreclosure mediation program, the “cash for keys” law for tenants of foreclosed homes, and the homestead exemption.
The act extends the judicial foreclosure mediation program established under PA 08-176 until July 1, 2012. Under prior law, the program was set to terminate on July 1, 2010.
The act narrows the circumstances in which a mortgagee represented by counsel may be absent from a foreclosure mediation session. It provides that the mortgagee must be available by telephone, whereas prior law permitted the mortgagee to be absent if available by telephone or electronic means.
The act modifies the “cash for keys” provisions regarding the minimum amount that mortgagees or other successors in interest may offer to tenants to vacate a foreclosed residential property, establishing that the amount must be at least $2,000, regardless of whether there is evidence of the amount of the tenant's security deposit.
The act specifies that for purposes of the homestead exemption for judgment debtors, “homestead” includes co-op properties.