2023 Banking and Related Legislation
Each year, the Department of Banking (DOB) conducts an active legislative program coordinated by the Government Relations and Consumer Affairs Division. Below are highlights of the agency and related bills that passed.
Please note that the hyperlinks for the bills lead to the Connecticut General Assembly website. These links provide you with copies of the Public Acts.
Department of Banking Proposals
Public Act 23-161 - SB-1088, An Act Concerning Financial Exploitation of Senior Citizens
Public Act 23-161 was a priority bill for the agency. The act allows for financial institutions, broker-dealers and investment advisers to place a hold on a transaction or disbursement, if they suspect financial abuse. The act provides financial institutions, broker-dealers and investment advisers immunity from legal action as long as they have written policies and procedures in place and provide training for their employees to spot signs of elder financial abuse. The Department took the lead in crafting the bill and built a coalition of members to support its passage, including AARP, the Connecticut Bankers Association and the Elder Law attorneys in the state.
Effective Date: July 1, 2024, except the provisions on determining joint account ownership and providing electronic or paper periodic statements are effective October 1, 2023.
Public Act 23-82 - HB-6752, An Act Concerning Digital Assets
Public Act 23-82 allows for the Department to adopt regulations around digital assets including crypto currencies and stablecoins. The bill requires virtual currency kiosks and their owner/operator to be licensed as money transmitters and requires certain disclosures when using these kiosks.
Effective Date: Upon passage, except the virtual currency kiosk provisions take effect October 1, 2023.
Public Act 23-126 - SB-1033, An Act Concerning Various Revisions to the Banking Statutes
Public Act 23-126 was an omnibus banking bill that included most of the agency’s proposals:
- Small Loan Changes – The act raises the limit of small loans from $15,000 to $50,000; clarifies that tips and donations are part of the finance charge when determining the APR on small loans; and includes Income Share Agreements in small loan definition.
- Sales Finance Companies - The act increases the maximum value of retail installment or installment loan contracts for motor vehicles and equipment. Currently, the maximum value is $50,000 for motor vehicles and $16,000 for equipment. The bill increases these amounts to $75,000 and $25,000 respectively, and by raising these limits, the law will apply to more consumers.
- Gap Waivers - The act sets requirements for the terms and cancellation of certain guaranteed asset protection (GAP) and excess wear and use waivers. It makes them cancelable within 60-day window, and requires a pro rata refund if canceled afterwards, provided no benefits have been used.
Public Act 23-126 also makes the following changes:
- Prohibits certain licensed mortgage professionals from (a) using an unlicensed lead generator unless the lead generator is exempt from licensure or (b) helping a lead generator conduct business without a valid license to do so;
- Eliminates the requirement that mortgage servicer supervisors generally live within 100 miles of a branch office;
- Eliminates the need for certain reports submitted by banks and credit unions to be notarized if submitted electronically;
- Exempts uninsured banks from being licensed as money transmitters;
- Modifies the treasurer’s Community Banking Program by increasing the maximum amount of funds available for the program from $100 million to $300 million, and raising the asset limit for eligible participating institutions from $1 billion to $2 billion;
- Applies a “capital and surplus” calculation to certain investment decision making of Connecticut banks (e.g., liabilities of borrowers, debt and equity securities, debt and equity mutual funds, social purpose investments, and mortgage lending); and
- Requires the Department of Banking to help account holders with matters concerning a financial institution’s merger with another institution, including helping to resolve complaints.
Effective Date: Please refer to bill summary: