AN ACT CONCERNING THE COMMUNITY BANK AND CREDIT UNION INVESTMENT PROGRAM ESTABLISHED BY THE STATE TREASURER.

SB 216 establishes a program allowing Connecticut's State Treasurer to invest up to $300 million of state operating cash with eligible community banks and credit unions. It sets asset limits for participation: initially prohibiting institutions with over $2 billion in assets (July 2023-Sept 2024), then adjusting the limit annually based on the median loan growth of participating institutions. The bill requires the State Treasurer to report eligible institutions to the Department of Banking annually and mandates that investment rates for participating institutions cannot exceed 100 basis points below comparable Treasury yields. This program directly affects community financial institutions seeking to manage state funds through a structured investment process.