Connecticut 2026 Session Status: Enacted Bipartisan · 2 R · 2 D cosponsors

SB 218 — 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.

Last action — SIGNED BY GOVERNOR

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed House
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 18, 2026. Enacted.

Signed by Governor Ned Lamont (Democratic) on May 27, 2026.

Prognosis

Likely to advance 74% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 4 sponsors

    4 primary, 0 co-sponsors signed on.

  • Bipartisan support

    Sponsored across 2 parties (2 R · 2 D) — cross-party backing.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

In plain language

This bill addresses community banking, credit unions, mortgage processes, and rental security deposit requirements.

The bill modifies regulations related to community banks and credit unions, mortgage payments, and security deposits for rentals. It also involves certain approvals required from the banking commissioner.

What this means for you
  • Families: Families may benefit from clearer regulations regarding mortgage payments and security deposits for rentals.
  • Small Business: Small businesses could see changes in how banking services, including credit options, are accessed.

Bill Text

What changed in the latest version

236 added · 48 removed

Plain-language change summary

The updated version of Senate Bill No. 218 introduces a program managed by the State Treasurer, which will provide up to $300 million for investment in eligible community banks and credit unions. This funding aims to support smaller financial institutions by setting asset limits that will allow only those with less than $2 billion in assets to participate, helping to ensure that community banks and credit unions can access much-needed resources. These changes are significant because they may strengthen local economies by promoting lending and investment in communities, particularly in the face of larger banks dominating the market.

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Previous
Latest
Senate General Assembly File No.
Senate Bill No.
75 February Session, 2026 Senate Bill No.
218 Public Act No.
218 Senate, March 19, 2026 The Committee on Banking reported through SEN.
26-79 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.
MILLER of the 27th Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.
AN ACT REQUIRING A STUDY RELATING TO BANKING ISSUES IN THE STATE.
(Effective from passage) The Department of Banking shall conduct a study relating to banking issues in the state.
Section 3-24k of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2026):
Not later than January 15, 2027, the department shall submit a report, in accordance with the provisions of section 11-4a of the general statutes, concerning the results of such study to the joint standing committee of the General Assembly having cognizance of matters relating to banking.
(a) The State Treasurer may establish a program under which the State Treasurer may, based on cash availability, make available a pool of funds not exceeding three hundred million dollars for investment with eligible community banks and community credit unions.
This act shall take effect as follows and shall amend the following sections:
Such funds shall be obtained from the state's operating cash managed by the State Treasurer.
Section 1 from passage New section BA Joint Favorable SB218 / File No.
(b) (1) The State Treasurer shall establish eligibility criteria for any program established under subsection (a) of this section.
75 1 SB218 File No.
Such eligibility criteria shall include, at a minimum, an asset limit for community banks and community credit unions to participate in such program.
75 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.
Such asset limit shall provide that:
In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.
(A) During the period beginning July 1, 2023, and ending September 29, 2024, no community bank or community Senate Bill No.
Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.
218 credit union with assets exceeding two billion dollars may participate in such program;
OFA Fiscal Note State Impact:
and (B) beginning September 30, 2024, no community bank or community credit union may participate in such program if such community bank's or community credit union's assets exceed the sum of (i) the preceding asset limit established by the State Treasurer, and (ii) the median percentage loan growth of community banks and community credit unions eligible for the program at the time when the State Treasurer establishes such asset limit.
None Municipal Impact:
As used in this subsection, "median percentage loan growth" means the middle value representing the percentage increase or decrease, as the case may be, in loan assets over a period of time reflected on the balance sheet of a specified group of lenders.
None Explanation The bill, which requires the Department of Banking to conduct a study relating to banking issues in the state, results in no fiscal impact since the department hasthecapabilitiesto meet therequirementsofthe bill.
(2) Not later than July 1, 2024, and annually thereafter, the State Treasurer shall provide to the Department of Banking a list of the community banks and community credit unions that are eligible to participate in such program at the time when the State Treasurer provides each such list to the department.
SB218 / File No.
Not later than August 31, 2024, and annually thereafter, the Department of Banking shall provide to the State Treasurer the median percentage loan growth of each such community bank and community credit union.
75 2 SB218 File No.
(c) The State Treasurer shall establish a schedule for making such investments with such banks and credit unions.
75 OLR Bill Analysis SB 218 AN ACT REQUIRING A STUDY RELATING TO BANKING ISSUES IN THE STATE.
(d) The State Treasurer shall establish a [competitive bidding] procedure under which such banks and credit unions may [compete] apply for investment-related services under said program.
SUMMARY The Office of Legislative Research does not analyze Special Acts.
Under such procedure, the State Treasurer may accept rates for such investment- relatedservicesthatarenotgreaterthanonehundredbasispointsbelow the previous day's yield for an appropriately comparative United States Treasury security with the same maturity date as the maturity date applicable to such investment-related services, as determined by the State Treasurer.
COMMITTEE ACTION Banking Committee Joint Favorable Yea 13 Nay 0 (03/10/2026) SB218 / File No.
Public Act No.
75 3
26-79 2 of 8 Senate Bill No.
218 (e)The State Treasurermay establishcapital standardsfor suchbanks and credit unions wishing to participate in said program.
Sec.2.Subsection(i)ofsection49-8aofthegeneralstatutesisrepealed and the following is substituted in lieu thereof (Effective October 1, 2026):
(i) (1) A mortgagee shall accept, as payment tendered for satisfaction or partial satisfaction of a mortgage loan, a bank check, certified check, attorney's clients' funds account check, title insurance company check, wire transfer or any other form of payment authorized under federal law.
(2) As used in this subdivision, (A) "mortgage loan" means a loan secured by a mortgage on residential real property, which loan is granted by a mortgagee to a mortgagor, (B) "mortgagee" means the owner or servicer of the debt secured by a mortgage, (C) "mortgagor" means any person obligated to repay a mortgage loan, (D) "residential real property" means a one-to-four family dwelling, occupied as a residence by a mortgagor, and (E) "prepayment" means a payment toward the outstanding principal amount of a mortgage loan beyond the monthly payment due on such mortgage loan.
For a mortgage loan made on or after January 1, 2027, a mortgagee shall accept a full or partial prepayment from a mortgagor, which prepayment shall reduce, in whole or in part, the amount of principal that a mortgagor owes on the mortgage loan, provided the mortgagee may apply the prepayment to an amount that is owed under the mortgage loan other than the principal amount, as permitted by the terms of the mortgage loan.
The mortgagee shall apply such prepayment in accordance with applicable state and federal laws and regulations.
A payment on a mortgage loan that a mortgagor intends as a prepayment shall not be considered a prepayment under thissubdivisionunlessall monthly paymentsdue on the mortgage loan have been paid at the time the mortgagor delivers such payment.
A prepayment shall not result in any change to the due date or the amount of the mortgagor's monthly payment due on the Public Act No.
26-79 3 of 8 Senate Bill No.
218 mortgage loan unless the mortgagee agrees in writing to such change.
A mortgagee shall not assess a prepayment charge with respect to any prepayment if such charge is prohibited by any state or federal law or regulation, provided, with respect to a mortgage loan insured by the Federal Housing Administration, the mortgagor may be required to reimburse the mortgagee up to the full amount of any charge, premium or fee required by any state or federal law or regulation of the Federal Housing Administration to be paid by the mortgagee upon payment of the mortgage loan prior to the date fixed for such payment.
Sec.
3.
Subdivision (1) of subsection (j) of section 47a-21 of the 2026 supplement to the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2026):
(j) (1) Except as provided in subdivision (2) of this subsection, the commissioner may receive and investigate complaints regarding any alleged violation of [subsections] subsection (b), (d), (h) or (i) of this section.
For the purposes of such investigation, any person who is or was a landlord shall be subject to the provisions of section 36a-17.
If the commissioner determines that any landlord has violated any provision of this section over which the commissioner has jurisdiction, the commissioner may, in accordance with [section] sections 36a-50 and 36a-52, order such [person to] landlord to pay a civil penalty, cease and desist from such practices and [to] comply with the provisions of this section.
Sec.
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4.
Subsection (b) of section 36a-34 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2026):
(b) The commissioner shall not grant any approval under section 36a- 125, subsections (b), (c) and (d) of section 36a-145, as amended by this act, section 36a-181, section 36a-411 or subdivisions (1) and (2) of subsection (a) of section 36a-412 unless the commissioner finds, in Public Act No.
26-79 4 of 8 Senate Bill No.
218 accordance with regulations adopted pursuant to chapter 54, that (1) based on the most recent applicable performance evaluation and any related information required by the commissioner, the entity has a record of compliance with the requirements of federal CRA, sections 36a-30 to 36a-33, inclusive, to the extent applicable, and applicable consumer protection laws;
and (2) except as otherwise provided in this subsection, if the entity, and in the case of an approval pursuant to section 36a-411, the bank or any subsidiary bank of the Connecticut holding company, received any overall rating other than an assigned rating of "outstanding" on its most recent applicable community reinvestment performance evaluation, or, in the case of an approval under subsection (b), (c) or (d) of section 36a-145, as amended by this act, if the entity received an overall rating of "needs to improve" or "substantial noncompliance" on its most recent applicable community reinvestment performance evaluation, the resulting entity will provide adequate servicesto meet thebanking needsofallcommunity residents, including low-income residents and moderate-income residents to the extent permitted by its charter, in accordance with a plan submitted by the applicant to the commissioner, in such form and containing such information as the commissioner may require, or, if acceptable to the commissioner, in accordance with an approved strategic plan prepared under federal CRA, or the relevant portion thereof, that is submitted by the applicant to the commissioner.
Upon receiving any such plan, the commissioner shall make the plan available for public inspection and comment at the Department of Banking and cause notice of its submissionandavailability for inspectionandcomment to bepublished in the department's weekly bulletin.
With the concurrence of the commissioner, the applicant or applicants shall publish, in the form of a legal advertisement in a newspaper having a substantial circulation in the area, notice of such plan's submission and availability for public inspection and comment.
The notice shall state that the inspection and comment period will last for a period of thirty days from the date of publication.
The commissioner shall not make such finding until the Public Act No.
26-79 5 of 8 Senate Bill No.
218 expiration of such thirty-day period.
In making such finding, the commissioner shall, unless clearly inapplicable, consider, among other factors, whether the plan identifies specific unmet credit and consumer bankingneedsinthelocalcommunityandspecifieshowsuchneedswill be satisfied, provides for sufficient distribution of banking services among branches or satellite devices, or both, located in low-income neighborhoods, contains adequate assurances that banking services will be offered on a nondiscriminatory basis and demonstrates a commitment to extend credit for housing, small business and consumer purposes in low-income neighborhoods.
The submission of such plan shall not be required in the case of an approval under subsection (d) of section 36a-145, provided, the commissioner may require the filing of such information in lieu of a plan as the commissioner deems appropriate.
If the commissioner determines that an applicant is an eligible entity, the commissioner may (A) exempt such applicant from the requirement that such applicant file a plan, or (B) require such information in lieu of a plan as the commissioner deems appropriate.
Except with respect to an approval pursuant to section 36a-145, as amended by this act, and section 36a-181, the commissioner shall not approve the transaction if the transaction would result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in this state or if the commissioner determines that the effect of the proposed transaction may be to substantially lessen competition, or would tend to create a monopoly, or would be in restraint of trade, unless the commissioner finds that the anticompetitive effects of the proposed transaction are clearly outweighed in the public interest by the probable effect of the transaction in meeting the convenience and needs of the community to be served.
Sec.
5.
Subsection (n) of section 36a-145 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2026):
Public Act No.
26-79 6 of 8 Senate Bill No.
218 (n) Upon receipt of an application pursuant to subdivision (1) of subsection (b) of this section, subdivisions (1) and (4) of subsection (c) of this section, subdivision (1) of subsection (d) of this section or subsection (j) of this section, the commissioner shall cause notice of the application to be published in the department's weekly bulletin.
The commissioner shall determine whether the applicant is an eligible entity, as defined in section 36a-34, as amended by this act, and shall promptly notify the applicant of such determination.
An application by an eligible entity shall be deemed approved on the [twelfth] fifth business day after expiration of the comment period provided in the department's weekly bulletin, unless the commissioner informs the applicant, in writing, prior to such [twelfth] fifth business day, that (1) an adverse comment has been received that warrants additional investigation or review;
(2) the application presents a significant community reinvestment or compliance concern;
(3) the application presents a significant supervisory concern or raises significant legal or policy issues;
or (4) the application requires additional information.
The application may be deemed approved prior to the expiration of the [twelfth] fifth business day if the commissioner issues a written notice of the commissioner's intent not to disapprove the application.
Sec.
6.
Subsection (a) of section 36a-32 of the general statutes is repealed andthefollowing issubstituted inlieuthereof(EffectiveOctober 1, 2026):
(a) In connection with the examination of a bank under section 36a- 17, the commissioner shall assess the record of the performance of the bank in helping to meet the credit needs of its entire community, includinglowandmoderate-incomeneighborhoods,consistentwiththe safe and sound operation of the bank.
The commissioner shall assess the community reinvestment performance of a bank utilizing the applicable methodology set forth in federal CRA.
In addition, the commissioner shall consider thefollowing in assessing a bank'srecordofperformance:
Public Act No.
26-79 7 of 8 Senate Bill No.
218 (1) The bank's record of offering escrow accounts for purposes of compliance with subsection (h) of section 47a-21;
(2) Efforts of the bank to work with delinquent residential mortgage customers who are unemployed or underemployed to facilitate a resolution of the delinquency;
[and] (3) Written comments received by the commissioner;
and (4) The bank's offering of a loan or deposit product designed to assist residents of its local communities, including, but not limited to, low and moderate-income individuals, in establishing or improving such residents' credit history.
Governor's Action:
Approved May 27, 2026 Public Act No.
26-79 8 of 8
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How this bill changes current law

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AI-generated reading aid from the bill's amendatory text — verify against the official bill.

The bill repeals and revises various existing statutes related to banking, mortgage payments, and penalties for violations of rental security deposit requirements.

  • Section 3-24k

    the commissioner shall establish a competitive bidding process under which community banks and credit unions may compete for investment-related services → the State Treasurer shall establish a [competitive bidding] procedure under which such banks and credit unions may [compete] apply for investment-related services under said program.

    Changes the process by which community banks and credit unions apply for investment-related services.

  • subsection (i) of section 49-8a

    A mortgagee shall accept any other form of payment authorized under state law. → A mortgagee shall accept, as payment tendered for satisfaction or partial satisfaction of a mortgage loan, a bank check, certified check, attorney's clients' funds account check, title insurance company check, wire transfer or any other form of payment authorized under federal law.

    Clarifies and expands the forms of payment a mortgagee must accept for mortgage loans.

  • subdivision (1) of subsection (j) of section 47a-21

    the commissioner may receive and investigate complaints regarding any alleged violation of subsections (b), (d), (h) or (i) of this section. → Except as provided in subdivision (2) of this subsection, the commissioner may receive and investigate complaints regarding any alleged violation of [subsections] subsection (b), (d), (h) or (i) of this section.

    Clarifies conditions under which complaints regarding landlord violations can be investigated.

  • subsection (b) of section 36a-34

    the commissioner shall not grant any approval under section 36a-125, including that there is an adequate service to meet the banking needs of all community residents, including low-income residents and moderate-income residents. → the commissioner shall not grant any approval under section 36a-125, subsections (b), (c) and (d) of section 36a-145, as amended by this act, section 36a-181, section 36a-411 or subdivisions (1) and (2) of subsection (a) of section 36a-412 unless the commissioner finds, in accordance with regulations adopted pursuant to chapter 54, that (1) based on the most recent applicable performance evaluation and any related information required by the commissioner, the entity has a record of compliance with the requirements of federal CRA, sections 36a-30 to 36a-33, inclusive, to the extent applicable, and applicable consumer protection laws;

    Revises the conditions for granting approvals related to various banking regulations.

  • subsection (n) of section 36a-145

    The commissioner shall not grant any approval unless the criteria set forth in this section are met. → the commissioner shall not approve the transaction if the transaction would result in a monopoly, or would be in furtherance of any combination or conspiracy to monopolize or attempt to monopolize the business of banking in this state

    Establishes additional criteria for the approval of banking transactions to prevent monopolistic practices.

Action History

  1. SIGNED BY GOVERNOR

  2. TRANSMITTED BY SECRETARY OF THE STATE TO GOVERNOR

  3. TRANSMITTED TO SECRETARY OF THE STATE

  4. PUBLIC ACT 26-79

  5. IN CONCURRENCE

  6. HOUSE PASSED, SEN. AMEND. SCH. A

  7. HOUSE ADOPTED SEN. AMEND. SCH. A

  8. HOUSE CALENDAR NUMBER 460

  9. FAV. RPT., TABLED FOR HOUSE CALENDAR

  10. SEN. PASSED, SEN. AMEND. SCH. A

  11. SEN. ADOPTED SEN. AMEND. SCH. A

  12. FILE NO. 75

  13. SENATE CALENDAR NUMBER 75

  14. FAV. RPT., TAB. FOR CAL., SEN.

  15. RPTD. OUT OF LCO

  16. REFERRED TO Office of Legislative Research AND Office of Fiscal Analysis 03/18/26

  17. FILED WITH LCO

  18. Joint Favorable

  19. PUBLIC HEARING 0224

  20. REF. TO JOINT COMM. ON Banking

Sponsors

Sponsorship breakdown

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4 sponsors · 0 co-sponsors · 183 not signed on

Sponsors (4)

Co-sponsors (0)

None.

Not signed on (183)

183 members have not signed on to this bill.

Show all 183 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

finance housing
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Frequently asked questions

Who sponsors SB 218?
SB 218 is sponsored by Chris Stewart (Republican), Nicholas Menapace (Democratic), Tom Delnicki (Republican), and Fred Gee (Democratic).
What is the current status of SB 218?
This bill has been enacted into law. Introduced February 18, 2026. Enacted.
Where can I track SB 218?
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