ConnecticutSB 002182026 Regular SessionSenateWALLET

AN ACT CONCERNING THE COMMUNITY BANK AND CREDIT UNION INVESTMENT PROGRAM, MORTGAGE PAYMENTS, PENALTIES FOR VIOLATIONS OF RENTAL SECURITY DEPOSIT REQUIREMENTS, CERTAIN APPROVALS BY THE BANKING COMMISSIONER, CONNECTICUT BRANCH APPLICATIONS AND SECURED CREDIT CARDS.

Sponsored By: Banking Committee

Signed by Governor

Summary

To require the Department of Banking to study and submit a report concerning banking issues in the state.

banking

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Bill Overview

Analyzed Economic Effects

6 provisions identified: 4 benefits, 1 costs, 1 mixed.

Stronger enforcement protects renters' security deposits

Beginning October 1, 2026, Connecticut's Banking Commissioner gains stronger tools to enforce rental security deposit rules. After finding a violation within the commissioner's authority, the commissioner can order a landlord to pay a civil penalty. The commissioner can also order the landlord to stop the practice and follow the law. This provision sets no penalty amount and does not guarantee renters a payment.

Homeowners gain mortgage early payment rights

For loans made on or after January 1, 2027, mortgage owners and servicers must accept full or partial principal prepayments. The loan must cover an owner-occupied, one- to four-family home, and all monthly payments must be current. Loan terms and applicable law may allow the money to cover other amounts owed. Your monthly payment and due date stay unchanged unless the mortgage owner or servicer agrees in writing. Charges prohibited by state or federal law cannot be added. Early repayment of an FHA-insured loan may still require reimbursement of charges required by law or FHA rules.

Bank reviews now consider credit-building products

Beginning October 1, 2026, Connecticut's Banking Commissioner must consider credit-building products when reviewing a bank's community reinvestment performance. Reviews consider loans or deposit products that help local residents establish or improve credit, including low- and moderate-income residents. Banks do not have to offer a specific product, and residents are not guaranteed access to one.

Community lenders gain state investment applications

Beginning October 1, 2026, the Treasurer must replace competitive bidding with applications for eligible Connecticut community banks and credit unions. Participation in the state investment program depends on available cash and the program's eligibility limits. The Treasurer may accept service rates no greater than 100 basis points—one percentage point—below the prior day's comparable U.S. Treasury yield.

Some bank deals lose competition safeguards

Beginning October 1, 2026, one statutory competition restriction no longer applies to bank approvals under section 36a-145. That restriction blocks transactions that create a monopoly or substantially reduce competition, unless public benefits clearly outweigh the harm. The law removes this restriction for those covered approvals, not all banking transactions.

Faster bank approvals, fewer service plans

Beginning October 1, 2026, eligible covered bank applications receive automatic approval five business days after comments close, replacing the twelfth-day deadline. Timely written notice pauses approval for adverse comments, reinvestment or compliance concerns, supervisory concerns, legal or policy issues, or missing information. The commissioner can also allow earlier approval through written notice. For approvals under section 36a-145(b), (c), or (d), banking-service plans are required only for ratings of “needs to improve” or “substantial noncompliance.” Other covered approvals still require plans for any community reinvestment rating below “outstanding.”

Sponsors & Cosponsors

Sponsor

  • Banking Committee

    Affiliation unavailable

Cosponsors

  • Chris Stewart

    Republican • House

  • Fred Gee

    Democratic • House

  • Nicholas Menapace

    Democratic • House

  • Tom Delnicki

    Republican • House

Roll Call Votes

All Roll Calls

Yes: 0 • No: 0

House vote • 3/10/2026

House Roll Call Vote 259 AS AMENDED

Yes: 0 • No: 0

Senate vote • 3/10/2026

Senate Roll Call Vote 106

Yes: 0 • No: 0

Senate vote • 3/10/2026

BA Vote Tally Sheet (Joint Favorable)

Yes: 0 • No: 0

Actions Timeline

  1. Signed by the Governor

    5/27/2026legislature
  2. Transmitted by Secretary of the State to Governor

    5/22/2026legislature
  3. Transmitted to the Secretary of State

    5/22/2026legislature
  4. Public Act 26-79

    5/19/2026legislature
  5. In Concurrence

    5/5/2026legislature
  6. House Passed as Amended by Senate Amendment Schedule A

    5/5/2026House
  7. House Adopted Senate Amendment Schedule A

    5/5/2026House
  8. House Calendar Number 460

    4/16/2026House
  9. Favorable Report, Tabled for the Calendar, House

    4/16/2026House
  10. Senate Passed as Amended by Senate Amendment Schedule A

    4/15/2026Senate
  11. Senate Adopted Senate Amendment Schedule A 4128

    4/15/2026Senate
  12. File Number 75

    3/19/2026legislature
  13. Senate Calendar Number 75

    3/19/2026Senate
  14. Favorable Report, Tabled for the Calendar, Senate

    3/19/2026Senate
  15. Reported Out of Legislative Commissioners' Office

    3/19/2026legislature
  16. Referred to Office of Legislative Research and Office of Fiscal Analysis 03/18/26 5:00 PM

    3/13/2026legislature
  17. Filed with Legislative Commissioners' Office

    3/10/2026legislature
  18. Joint Favorable

    3/10/2026legislature
  19. Public Hearing 02/24

    2/19/2026legislature
  20. Referred to Joint Committee on Banking

    2/18/2026legislature

Bill Text

  • Public Act No. 26-79

    5/19/2026

  • File No. 75

    3/19/2026

  • BA Joint Favorable

    3/10/2026

  • Raised Bill

    2/18/2026

  • BA Joint Fav. Rpt

  • BA Vote Tally Sheet (Joint Favorable)

  • Bill Analysis For File Copy 75

  • Bill Analysis for SB-218, as amended by Senate "A"

  • Fiscal Note For File Copy 75

  • Fiscal Note for Amendment LCO 4128 (See Fiscal Note Details)

  • Fiscal Note for SB-218, As Amended by Senate "A" (LCO 4128)

  • House Roll Call Vote 259 AS AMENDED

  • Senate Roll Call Vote 106

  • Senate Schedule A LCO# 4128 (J)

  • Summary for Public Act No. 26-79

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