OLR Bill Analysis

SB 473

AN ACT CONCERNING THE DEPARTMENT OF BANKING.

SUMMARY

This bill expressly extends the application of Connecticut banking laws to business and industrial development corporations (BIDCOs). By law, these corporations are non-depository financial institutions approved, or seeking approval, to act as a participating lender under the federal Small Business Administration's loan guarantee programs. By law, they must be licensed by the banking commissioner and are subject to his jurisdiction (CGS 36a-625 et seq.). By expressly subjecting BIDCOs to the provisions of the state's banking laws, the bill also subjects them to penalties, including the general penalties for violating banking laws (e.g., a fine of between $25 and $1,000 for each offense, see CGS 36a-57).

EFFECTIVE DATE: October 1, 2018

COMMITTEE ACTION

Banking Committee

Joint Favorable

Yea

19

Nay

0

(03/20/2018)