File No. 79

Senate, March 30, 2005

The Committee on Banks reported through SEN. FINCH of the 22nd Dist., Chairperson of the Committee on the part of the Senate, that the bill ought to pass.

AN ACT CONCERNING THE DEPARTMENT OF BANKING.

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

Section 1. Section 36a-1 of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2005):

This title shall be known as the "Banking Law of Connecticut" and shall be applicable to all Connecticut banks, Connecticut credit unions, first and secondary mortgage lenders and brokers, money order and travelers check licensees, check cashing service licensees, trustees under mortgages or deeds of trust of real property securing certain investments, corporations exercising fiduciary powers, small loan licensees, business and industrial development corporation licensees, sales finance companies, mortgage servicing companies, debt adjusters, and to such other persons [as] who subject themselves to the provisions of this title or who, by violating any of its provisions, become subject to the penalties provided in this title.

Sec. 2. Section 36a-3 of the general statutes is repealed. (Effective October 1, 2005)

The following fiscal impact statement and bill analysis are prepared for the benefit of members of the General Assembly, solely for the purpose of information, summarization, and explanation, and do not represent the intent of the General Assembly or either House thereof for any purpose:

OFA Fiscal Note

State Impact:

Note: BF=Banking Fund

Municipal Impact: None

Explanation

The bill includes business and industrial development corporation licensees to the list of licenses to which Connecticut’s banking law applies. Under the bill business and industrial development corporation licensees are subject to penalties as a result of violation of banking law. In FY 04, the Banking Department collected $455,100 in penalties as a result of various violations. To the extent that the bill increases the potential for future violations, it could result in a minimal revenue gain to the state.



OLR Bill Analysis

SB 1016

AN ACT CONCERNING THE DEPARTMENT OF BANKING

SUMMARY:

This bill adds business and industrial development corporation licensees to the list of licensees to which Connecticut’s banking law applies. The banking law applies to listed entities, as well as to other people who subject themselves to its provisions or who, by violating any of its provisions, become subject to its penalties. The law already authorizes and licenses business and industrial development corporations.

The bill also makes technical changes.

EFFECTIVE DATE: October 1, 2005

BACKGROUND

Parties Subject to the Connecticut Banking Law

Connecticut banking law currently applies to all Connecticut banks, Connecticut credit unions, first and secondary mortgage lenders and brokers, money order and travelers check licensees, check cashing service licensees, trustees under mortgages or deeds of trust of real property securing certain investments, corporations exercising fiduciary powers, small loan licensees, sales finance companies, mortgage servicing companies, debt adjusters, and other entities that subject themselves to the provisions of the law or who, by violating any of its provisions, become subject to its penalties.

COMMITTEE ACTION

Banks Committee

Joint Favorable Report