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Substitute House Bill No. 6498

Public Act No. 03-226

AN ACT CONCERNING STATE SUPPORT OF COMMUNITY BANKS AND COMMUNITY CREDIT UNIONS.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective October 1, 2003) As used in sections 2 and 3 of this act:

(1) "Community bank" means a bank that is domiciled in this state and has assets of not more than five hundred million dollars; and

(2) "Community credit union" means a community credit union, as defined in section 36a-37 of the general statutes, which has assets of not more than five hundred million dollars.

Sec. 2. (NEW) (Effective October 1, 2003) (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 one hundred million dollars for investment with community banks and community credit unions. Such funds shall be obtained from the state's operating cash managed by the State Treasurer.

(b) The State Treasurer shall establish a schedule for making such investments with such banks and credit unions.

(c) The State Treasurer shall establish a competitive bidding procedure under which such banks and credit unions may compete for investment-related services under said program.

(d) The State Treasurer may establish capital standards for such banks and credit unions wishing to participate in said program.

Sec. 3. (NEW) (Effective October 1, 2003) The State Treasurer may adopt regulations, in accordance with the provisions of chapter 54 of the general statutes, to carry out the purposes of sections 1 and 2 of this act.

Approved July 9, 2003