Bill Summary: Deposits in Lieu of Taxes

• Tax-exempt entities under IRC Section 501(c) that own college/hospital property or maintain significant funds must pay annual fees equal to 25% of calculated property taxes to a community development account.

• Establishes community development credit unions designated by an oversight council to provide financial services and community investment in designated "community impact zones" within distressed municipalities.

• Credit unions must focus on specified priorities including early childhood education, school achievement, community asset rebuilding, home ownership, employment training, and transportation access.

• Creates a community development credit union oversight council with representatives from the Treasurer, Commissioner of Economic and Community Development, Commission on Equity and Opportunity, and four Governor-appointed members to designate credit unions and zones by August 2020.

• Community development credit unions receive fee payments from eligible entities and must invest returns with one-sixth reinvested in an evergreen account, one-third returned to payers, and one-half available for eligible community programs approved by the oversight council.