Summary of Substitute Senate Bill No. 1033 (Public Act No. 23-126)

• Small Loan Limits & APR Rates: Increases the maximum loan amount from $15,000 to $50,000 and establishes APR caps of 36% for loans under $5,000 and 25% for loans between $5,000-$50,000, with stricter restrictions on loan terms and prohibited practices.

• Banking Capital Standards: Changes calculation methodology from "equity capital and reserves for loan and lease losses" to "capital and surplus" for Connecticut banks' investment and lending limitations, with optional elections available through January 1, 2024.

• Debt Waivers for Motor Vehicles: Authorizes excess wear and use waivers and guaranteed asset protection waivers for motor vehicle leases and purchases, effective January 1, 2024, with cancellation rights and pro-rata refund provisions.

• Credit Union Membership Expansion: Broadens Connecticut credit union field of membership to include partnerships, corporations, organizations, and associations with documented legitimate purposes beyond membership expansion.

• Financial Institution Merger Oversight: Establishes Banking Commissioner duties to assist account holders with merger-related concerns, investigate complaints involving Connecticut banks and credit unions, and submit annual reports to the legislature on merger impacts.

• Community Bank Investment Program: Increases state treasurer's available investment pool from $100 million to $300 million for community banks and credit unions, with asset limits and median loan growth tracking requirements.