Bill Text: CT SB00922 | 2015 | General Assembly | Introduced

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Bill Title: An Act Concerning Minor Revisions To Connecticut's Financial Institutions Statutes.

Spectrum: Committee Bill

Status: (Introduced - Dead) 2015-02-20 - Public Hearing 02/24 [SB00922 Detail]

Download: Connecticut-2015-SB00922-Introduced.html

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General Assembly		Raised Bill No. 922
January Session, 2015		LCO No. 3356
		*03356_______BA_*
Referred to Committee on BANKING
Introduced by:
(BA)

AN ACT CONCERNING MINOR REVISIONS TO CONNECTICUT'S FINANCIAL INSTITUTIONS STATUTES.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. Subsection (a) of section 36a-440b of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) A Connecticut credit union shall [submit a written report to the commissioner annually on February first and August first and otherwise as often as the commissioner deems necessary. The report shall be in the form prescribed by the commissioner, list the assets and liabilities of the Connecticut credit union and contain any other information the commissioner may require. The Connecticut credit union shall also provide the commissioner with] file (1) financial and statistical reports with the National Credit Union Administration or its successor agency in accordance with and at such times as required by 12 CFR 741.6, as amended from time to time, and (2) such other reports and information as may be required by the commissioner. Each Connecticut credit union that fails to file any report or information required by this section shall pay to the commissioner one hundred dollars for each day that it fails to file such report or information.

Sec. 2. Subsection (c) of section 36a-82 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(c) Upon receiving such application, the commissioner shall cause notice of its submission to be published in the department's weekly bulletin. The notice shall state that written objections to such application may be made, for a period of thirty days from the date of publication of the bulletin, on the grounds that the name selected will tend to confuse the public. At least ten days prior to the date by which objections may be made, the applicant shall [mail] send a copy of the application and a notice of the date by a means that provides confirmation of delivery, including, but not limited to, registered or certified mail, return receipt requested, to each bank or out-of-state bank having its main office or a branch in the town or towns in which the applicant has its main office or a branch.

Sec. 3. Subsection (a) of section 36a-86 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2015):

(a) The governing board of each Connecticut bank shall annually procure an audit or examination by certified public accountants or holders of certificates of authority as public accountants selected by vote of the governing board or a duly authorized committee thereof, and such accountants shall agree to provide related working papers, policies and procedures to the commissioner, if requested. The accountants shall thoroughly examine the books, records, accounts and affairs of such bank and submit a signed report of the audit or examination showing the condition of the bank to the governing board of such bank within a reasonable period of time following the conclusion of the audit or examination. The signed report shall be kept on file in such bank and a copy shall be filed with the commissioner not later than the earlier of (1) one hundred twenty days following the close of such bank's fiscal year, or (2) the date prescribed by federal law for such bank to file such audit or examination with the applicable federal banking regulator, unless the commissioner extends such deadline for good cause shown. Members of the governing board of such Connecticut bank shall not be personally liable for any loss suffered by such bank through the wrongdoing or negligence of any officer or employee, which wrongdoing or negligence should have been discovered by the accountants in the performance of their duties, provided such members shall have exercised due care to procure thorough and substantial audits by the accountants.

Sec. 4. Section 36a-170 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

[(a) As used in this section, "home banking services" means the electronic transfer of funds or information, or the performance of other permissible banking services or transactions for a customer by means of a home banking terminal; and "home banking terminal" means any electronic home or office terminal, including, but not limited to, a computer terminal, television, telephone, facsimile machine or other electronic device, that is not accessible to the public and does not accept deposits.

(b) Any bank or out-of-state bank, and any Connecticut credit union or federal credit union may provide home banking services to customers.]

(a) As used in this section, "virtual banking" means the provision of banking services by any bank, out-of-state bank, Connecticut credit union or federal credit union pursuant to its charter that are made available to a customer through telecommunication or by the customer accessing the Internet.

[(c)] (b) Any electronic transfer of funds [by means of a home banking terminal authorized under this section] initiated through virtual banking shall be subject to the Electronic Fund Transfer Act, 15 USC Section 1693, et seq., as amended from time to time, and Regulation E, 12 CFR Part 205, as amended from time to time.

[(d) Home banking terminals are not automated teller machines, satellite devices, branches or offices for any purpose under this title.]

(c) The means by which virtual banking is made available to a customer through telecommunication or the Internet, including, but not limited to, television, telephone, facsimile or computer, shall not, in and of itself, be deemed to be an automated teller machine, satellite device, branch or office for any purpose under this title.

Sec. 5. Subsection (c) of section 36a-185 of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(c) The commissioner shall disapprove such offer, invitation, request, agreement or acquisition if: (1) It involves the acquisition of the voting securities or securities convertible into voting securities of a bank that has not been in existence and continuously operating for at least five years, or a holding company, the subsidiary banks of which have not been in existence and continuously operating for at least five years, unless the commissioner waives this requirement; (2) the acquiring person, including all insured depository institutions [which] that are affiliates of the person, upon consummation of the acquisition, would control thirty per cent or more of the total amount of deposits of insured depository institutions in this state, unless the commissioner permits a greater percentage of such deposits; (3) the commissioner cannot make the findings required by section 36a-34; or (4) to the extent the acquiring person is subject to anti-money-laundering laws and regulations, the programs, policies and procedures of the acquiring person relating to anti-money-laundering activity are inadequate, and the acquiring person does not have a record of compliance with anti-money-laundering laws and regulations. In making the determination to disapprove or not to disapprove such offer, invitation, request, agreement or acquisition, the commissioner shall consider whether: (A) The investment and lending policies of the bank referred to in the acquisition statement are consistent with safe and sound banking practices and will benefit the economy of this state; (B) the services or proposed services of the bank referred to in the acquisition statement are consistent with safe and sound banking practices and will benefit the economy of this state; (C) the proposed acquisition will not substantially lessen competition in the banking industry of this state; and (D) the acquiring person, if such person would be the beneficial owner of twenty-five per cent or more of any class of voting securities of the bank or holding company referred to in the acquisition statement, (i) has sufficient capital to ensure, and agrees to ensure, that the bank referred to in the acquisition statement will comply with applicable minimum capital requirements, and (ii) has sufficient managerial resources to operate the bank or holding company referred to in the acquisition statement in a safe and sound manner.

This act shall take effect as follows and shall amend the following sections:
Section 1	October 1, 2015	36a-440b(a)
Sec. 2	October 1, 2015	36a-82(c)
Sec. 3	October 1, 2015	36a-86(a)
Sec. 4	from passage	36a-170
Sec. 5	from passage	36a-185(c)

Statement of Purpose:

To clarify reporting obligations of Connecticut credit unions, to permit mailing methods other than registered or certified mail, to establish deadlines for the submission of annual audits, and to update the "home banking" statute to reflect technological changes in the provision of banking services.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]