HB 5216 — AN ACT CONCERNING LOW-COST BANK ACCOUNTS.

Substitute House ofBill Representatives File No.

5135216 GeneralPublic AssemblyAct February Session, 2022Reprint of File No.

105)22-77 SubstituteAN HouseACT BillCONCERNING No.LOW-COST BANK ACCOUNTS.

5216 As Amended by House Amendment Schedule "A" Approved by the Legislative Commissioner April 18, 2022 AN ACT CONCERNING LOW-COST BANK ACCOUNTS.

(1) "Banking institution" means any bank, trust company, savings bank,savingsandloanassociationorcreditunion,orbranchofabank,savingsandloanassociationorcreditunion,orbranchofaforeign foreign banking corporation, the deposits of which are insured by the Federal Deposit Insurance Corporation or the National Credit Union Administration,asapplicable,thatisincorporated,chartered,organized or licensed under the laws of this state or any other state or the United States, and, in the ordinary course of its business, offers consumer transaction accounts to the general public or, in the case of a credit union, to its members;

(2) "Basic banking account" means a consumer transaction account that meets the requirements established under subsections (c) and (d) of sHB5216this /section; File No.

513and sHB5216(3) File"Consumer transaction account" means a demand deposit account, negotiable order of withdrawal account, share draft account or similar account used primarily for personal, family or household Substitute House Bill No.

5135216 thispurposes. section;

and (3) "Consumer transaction account" means a demand deposit account, negotiable order of withdrawal account, share draft account or similar account used primarily for personal, family or household purposes.

(e) (1) A banking institution that posts, in the public area of its offices, sHB5216notice /of Filethe availability of its consumer transaction accounts other than its basic banking accounts, shall also post equally conspicuous notice, in Public Act No.

51322-77 sHB52162 Fileof 3 Substitute House Bill No.

5135216 notice of the availability of its consumer transaction accounts other than its basic banking accounts, shall also post equally conspicuous notice, in the same public areas and in the same manner, of the availability of its basic banking accounts.

ThisApproved actMay shall31, take2022 effectPublic asAct followsNo. and shall amend the following sections:

Section22-77 13 Januaryof 1,3 2023 New section sHB5216 / File No.

513 sHB5216 File No.

513 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.

In general, fiscal impacts are based upon a variety of informational 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 This bill, which requires certain banking institutions to offer consumers a basic banking account and meet minimum guidelines by January 1, 2023, does not result in any fiscal impact to the state or municipalities.

House "A" strikes the original bill and its associated fiscal impact, thus becoming the bill with the above referenced fiscal impact.

The Out Years State Impact:

None Municipal Impact:

None sHB5216 / File No.

513 4 sHB5216 File No.

513 OLR Bill Analysis sHB 5216 (as amended by House "A")* AN ACT CONCERNING LOW-COST BANK ACCOUNTS.

SUMMARY This bill requires certain banking institutions to offer Connecticut residents a “basic banking account” beginning July 1, 2023.

These consumer transaction accounts must:

1.

offer at no additional charge a debit card, in-network ATM access, deposits, check cashing for checks issued by the institution where the consumer holds the account, and electronic monthly statements and 2.

not charge fees for overdraft, insufficient funds, account activation, closure, dormancy or inactivity, or low balance.

Additionally, the accounts must not require a:

1.

minimum initial deposit of more than $25;

2.

minimum balance to maintain the account of more than $25;

or 3.

maintenance charge of more than $10 per periodic cycle (e.g., monthly billing cycle).

The bill applies to all “banking institutions,” which are banks, trust companies, savings banks, savings and loan associations, credit unions, or foreign bank branches insured by the Federal Deposit Insurance Corporation or National Credit Union Administration, as applicable.