SB 302 — AN ACT REVISING VARIOUS PROVISIONS RELATING TO CERTAIN APPROVALS BY THE BANKING COMMISSIONER AND CONNECTICUT BANK BRANCH APPLICATIONS.

Senate General Assembly RaisedFile Bill No.

302126 February Session, 2026 LCOSubstitute Senate Bill No.

2058302 ReferredSenate, toMarch 23, 2026 The Committee on BANKINGBanking Introducedreported by:through SEN.

(BA)MILLER ANof ACTthe REVISING27th VARIOUSDist., PROVISIONSChairperson RELATINGof TOthe CERTAINCommittee APPROVALSon BYthe THEpart BANKINGof COMMISSIONERthe ANDSenate, CONNECTICUTthat BANKthe BRANCHsubstitute APPLICATIONS.bill ought to pass.

AN ACT REVISING VARIOUS PROVISIONS RELATING TO CERTAIN APPROVALS BY THE BANKING COMMISSIONER AND CONNECTICUT BANK BRANCH APPLICATIONS.

and (2) except as otherwise provided in this subsection,sSB302 if/ theFile entity, and in the case of an approval pursuant to LCO No.

2058126 1 ofsSB302 4File RaisedNo. Bill No.302 section 36a-411, the bank or any subsidiary bank of the Connecticut holding company, received [any] an overall rating [other than an assigned rating of "outstanding"] of "needs to improve" or "substantial noncompliance" on its most recent applicable community reinvestment performance evaluation, the resulting entity will provide adequate services to meet the banking needs of all community 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.

126 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.

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 commitmentsSB302 to/ extendFile creditNo. for housing, small business and consumer purposes in low-income neighborhoods.

The126 submission2 ofsSB302 suchFile plan shall not be required in the case of an approval under subsection (d) of LCO No.

2058126 2commitment ofto 4extend Raisedcredit Billfor No.302housing, sectionsmall 36a-145,business provided,and theconsumer commissionerpurposes may require the filing of such information in lieulow-income ofneighborhoods. a plan as the commissioner deems appropriate.

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.

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'ssSB302 weekly/ bulletin,File unless the commissioner informs the applicant, in writing, prior to such [twelfth] fifth business day, that (1) LCO No.

2058126 3 ofsSB302 4File Raised Bill No.

302126 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 October 1, 2026 36a-145(n) StatementBA ofJoint Purpose:Favorable Subst.

TosSB302 revise/ variousFile provisionsNo. relating to (1) community reinvestment performance evaluation ratings and certain approvals by the Banking Commissioner, and (2) timeframes applicable to certain applications regarding Connecticut bank branches.

[Proposed126 deletions4 aresSB302 enclosedFile inNo. brackets.

Proposed126 additionsThe following Fiscal Impact Statement and Bill Analysis are indicatedprepared byfor underline,the exceptbenefit thatof whenthe members of the entireGeneral textAssembly, solely for purposes of ainformation, billsummarization orand resolutionexplanation orand ado sectionnot ofrepresent athe billintent orof resolutionthe isGeneral new,Assembly itor iseither notchamber underlined.]thereof LCOfor No.any purpose.

2058In 4general, fiscal impacts are based upon a variety of 4informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

None Municipal Impact:

None Explanation The bill makes adjustments to Connecticut bank branch applications and shortens certain notification timeframes, resulting in no fiscal impact to the state.

sSB302 / File No.

126 5 sSB302 File No.

126 OLR Bill Analysis sSB 302 AN ACT REVISING VARIOUS PROVISIONS RELATING TO CERTAIN APPROVALS BY THE BANKING COMMISSIONER AND CONNECTICUT BANK BRANCH APPLICATIONS.

SUMMARY This bill:

1.

eliminates the requirement that Connecticut banks with a “satisfactory” Community Reinvestment Act (CRA) rating submit a plan for meeting community banking needs when applying to the Department of Banking (DOB) to establish a branch location in the state (including a limited or special need limited branch) or convert a limited branch to a branch, or vice versa, and 2.

generally shortens, by seven days, the timeframe for the commissioner to notifybanks applying to establish aConnecticut or out-of-state branch of his determination before the applications are deemed approved.

EFFECTIVE DATE:

October 1, 2026 COMMUNITY BANKING NEEDS PLAN Under current law, the commissioner cannot approve certain types of applications from entities that received a rating other than “outstanding” on their most recent community reinvestment performance evaluation unless they submit a plan illustrating how they will provide adequate services to meet the banking needs of all community residents, including those with low or moderate income.

This requirement applies to entities seeking various DOB approvals, including to (1) open a Connecticut branch, (2) merge or sSB302 / File No.

126 6 sSB302 File No.

126 consolidatewithaConnecticutbank,or(3)organizeaholdingcompany.

The bill exempts any entity with a “satisfactory” rating on its most recent applicable community reinvestment performance evaluation from this requirement when applying to (1) establish a Connecticut branch location, including a limited or special need limited branch, or (2) convert a limited branch to a branch, or vice versa.

It retains the requirement for applicants for other DOB approvals.

Existing law authorizes the commissioner to waive this requirement or require the submission of alternative information if the entity has at least a “satisfactory” rating and meets certain other criteria (i.e.

for “eligible entities;” see BACKGROUND — Eligible Entities).