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SB 1398 Connecticut Senate · 2025 Regular Session

AN ACT CONCERNING COMMUNITY REINVESTMENT BY BANKS AND CREDIT UNIONS.

SB 1398 requires Connecticut banks and credit unions with state branches to assess how well they serve low- and moderate-income neighborhoods, minority-owned businesses, and women-owned businesses. The bill mandates that the state banking commissioner evaluate each bank’s community reinvestment record using the same federal Community Reinvestment Act (CRA) standards applied by national regulators. Banks will receive a public rating - Outstanding, Satisfactory, Needs Improvement, or Substantial Noncompliance - based on this assessment, with the commissioner also considering efforts like mortgage hardship programs and escrow account offerings. This law directly affects all Connecticut-based banks and credit unions, effective October 1, 2025.
Issues: ✓ HousingSupports HousingMandates banks to assess service in low-income neighborhoods and minority areas, promoting equitable lending and preventing housing discrimination per CRA standards.85% confidence
Bill status in committee 1 of 4 stages cleared
Introduction
Feb 2025
Committee Review
Floor Vote
Governor
Introduced Feb 27, 2025 Last action Mar 27, 2025
Maddy AI version diff · 1 comparison

What changed between versions

Raised Bill → BA Joint Favorable Substitute · 4 edits
MODERATE
This bill was amended to streamline its title and scope by removing references to 'reports, records, inspections and examinations of mortgage lenders,' narrowing its focus to community reinvestment by banks and credit unions. The substantive changes primarily involve reformatting definitions and clarifying language around minority-owned and women-owned businesses, ensuring consistent terminology throughout the document.
Scope change
The bill's scope was narrowed by removing explicit references to mortgage lender examinations and reports from the title and introductory sections, though the core community reinvestment provisions for banks and credit unions remain intact.
SCOPE

Removed references to mortgage lenders, reports, records, inspections, and examinations from the bill title and introductory text, narrowing the focus to community reinvestment by banks and credit unions only.

DEFINITION

Updated definitions of 'minority-owned business' and 'women-owned business' to use 'at least' instead of 'fifty-one per cent or more,' clarifying the ownership threshold language.

REQUIREMENT

Reordered and slightly rephrased language regarding how banks must delineate assessment areas and how the commissioner evaluates community reinvestment records, improving clarity without changing substantive requirements.

TECHNICAL

Updated page headers and bill numbering from 'Raised Bill' to 'Substitute Bill' and adjusted line numbers to reflect the revised text structure.

Floor votes

How they voted

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Full legislative history

Actions timeline

Total actions
9
Key actions
1
Committee
2
Mar 11, 2025
Upper · Passed
Joint Favorable Substitute
upper
Feb 27, 2025
Committee
REF. TO JOINT COMM. ON Banking
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.