2013 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 banking-related legislation for 2013.
Please note that the hyperlinks for each bill lead to the Connecticut General Assembly website. These links can provide you with copies of the Public Acts and more detailed legislative summaries of the bills.
Department of Banking Proposals
Public Act 13-106 - HB 6340, AN ACT CONCERNING THE CONNECTICUT UNIFORM SECURITIES ACT
The purpose of this act is to update Connecticut statutes related to the Uniform Securities Act. The bill is mainly technical in nature and codifies existing practices.
Effective Date: October 1, 2013
Public Act 13-135 - HB 6339, AN ACT CONCERNING BANKS AND THE ECONOMIC DEVELOPMENT OF LOAN PRODUCTION OFFICES
The original bill, HB 6339, was an agency proposal that addressed the enforcement authority of the Commissioner related to licensees and clarified oversight of loan production offices outside the state.
The bill became a vehicle for a number of other legislative proposals. The following bills were added to HB 6339 and all subsequently became enacted as part of P.A. 13-135:
SB 827, AN ACT CONCERNING PUBLIC DEPOSITS, was an agency proposal. The bill amends the public deposit laws based on the recommendations of a task force composed of the Connecticut Bankers Association, the Connecticut Credit Union League, the Office of the State Treasurer, the Office of Policy and Management and other interested parties. The legislation will afford greater protection to state and municipal deposits.
The bill significantly improves Connecticut’s existing laws concerning the protection of public deposits. It increases the protection afforded to public deposits under current law without being unduly burdensome to financially sound institutions. It also simplifies and streamlines the provisions regarding eligible collateral and eliminates riskier forms of collateral. Finally, the act gives the agency authority to increase collateral requirements in the event of an increased risk to public deposits before the factors that would automatically trigger an increase in collateral come into effect.
SB 913, AN ACT REQUIRING NOTIFICATION OF THE SALE OF A REAL PROPERTY TAX LIEN, requires the party to whom a municipality has assigned a tax lien, or any subsequent assignee, to provide written notice to the mortgage holder within 30 days after the assignment. It also specifies what information is included in the notice.
SB 980, AN ACT CONCERNING THE DEBT SECURITY LIMITS FOR CONNECTICUT BANKS, establishes conditions under which Connecticut banks may invest in certain debt securities.
HB 5392, AN ACT PROVIDING CONSUMER PROTECTION TO CLIENTS OF EXCHANGE FACILITATORS FOR TAX DEFERRED EXCHANGES was a proposal that passed the House during the 2012 session but died in the Senate. Resurrected this year, the language imposes requirements on people or businesses who act as exchange facilitators and enacts certain procedures and definitions for the industry.
HB 5638, AN ACT DECREASING THE TIME FRAME FOR PAYMENT BY AN APPRAISAL MANAGEMENT COMPANY TO AN APPRAISER was an Insurance Committee bill that was referred to Banks Committee. The language decreases, from 60 to 45 days, the time in which an appraisal management company must pay an appraiser for an appraisal or valuation assignment.
Effective Date: October 1, 2013, except the provisions on Connecticut bank mergers, loan production offices, and qualified public depositories are effective upon passage.
Public Act 13-253 - SB 911, AN ACT CONCERNING MONEY TRANSMISSION AND CONSUMER COLLECTION AGENCIES
The act makes numerous changes to the consumer credit statutes in an effort to better protect the consumer. Most notably, it enhances regulatory requirements of money transmission licensees and makes other conforming changes consistent with industry standards.
Effective Date: October 1, 2013
Other Banking Related Legislation
Public Act 13-96 - HB 5564, AN ACT ENCOURAGING INCREASED SAVINGS DEPOSITS
The act allows Connecticut credit unions and community banks to offer savings promotion raffles under specified conditions governed by the Department of Banking.
Effective Date: October 1, 2013
Public Act 13-136 - HB 6355, AN ACT CONCERNING HOMEOWNER PROTECTION RIGHTS
The act implements certain changes and new protections related to the foreclosure actions occurring in Connecticut’s court system. The language would require plaintiffs to mediate in good faith or face certain judicial sanctions or fines. Mediators will be empowered to recommend appropriate sanctions to the judge. The act creates a fast track foreclosure process to let the banks take ownership and sell properties when a homeowner has abandoned the property.
Effective Date: July 15, 2013
Public Act 13-254 - SB 912, AN ACT CONCERNING PREPAID CARDS
This act defines a “linked prepaid card” as a type of general-use prepaid card and establishes requirements that are specific to said cards. It also makes technical changes in implementing the bill.
Effective Date: October 1, 2013