Victory for Credit Unions: Bill 7083 Heads to Governor’s Desk
Credit Union Modernization Bill Heads to Governor’s Desk
We’re proud to announce that the credit union modernization bill championed by the league (House Bill 7083) has passed unanimously in both the House and Senate and now heads to the Governor’s desk for signature. We expect the Governor will sign it into law, and the bill will take effect on July 1, 2025.
Summary of Key Provisions:
This legislation modernizes and strengthens the regulatory framework for state-chartered credit unions by:
- Allowing preferential credit terms for insiders, employees, and board members under a written policy and with safeguards against financial loss.
- Expanding the types of loans exempt from business lending restrictions.
- Giving authority to senior management to make a certain amount of charitable contributions without board approval.
- Removing regular reserves from certain net worth and capital calculations.
- Permitting CDFI-certified credit unions to accept significant non-member deposits based on total assets.
The bill also includes technical and conforming changes, including clarification on the definition of “loan officer.”
A full version of the bill and in-depth analysis (starting on page 12) can be found here.
Special Thanks
Passage of this bill represents an important first step in a multiyear initiative to modernize the Connecticut credit union statutes. We extend our sincere thanks to Kathy Chartier, John Holt, and everyone who submitted testimony in favor of this bill.
Thank you to every credit union CEO, team member, and advocate who helped make this possible. Your dedication to improving and protecting the credit union movement in Connecticut is deeply appreciated.
Together, we’ve taken a meaningful step forward for our institutions, our members, and our communities.
