CT
Connecticut House Bill HB07179

Connecticut 2019 Regular Session

Connecticut House Bill HB07179 Compare Versions

OldNewDifferences
1+
2+
3+LCO \\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-R01-
4+HB.docx
5+1 of 12
6+
7+General Assembly Substitute Bill No. 7179
8+January Session, 2019
19
210
311
4-Substitute House Bill No. 7179
5-
6-Public Act No. 19-192
712
813
914 AN ACT CONCERNING CR UMBLING CONCRETE FOU NDATIONS.
1015 Be it enacted by the Senate and House of Representatives in General
1116 Assembly convened:
1217
13-Section 1. Subsections (b) to (h), inclusive, of section 38a-91vv of the
14-general statutes are repealed and the following is substituted in lieu
15-thereof (Effective July 1, 2019):
16-(b) In addition to any other requirements imposed by law applicable
17-to captive insurance companies, the captive insurance company
18-established pursuant to this section shall:
19-(1) Upon request of the joint standing committees of the General
20-Assembly having cognizance of matters relating to planning and
21-development, public safety and housing, or the Governor, make
22-recommendations regarding the expansion of eligibility for financial
23-assistance pursuant to this section and modifications to improve the
24-efficiency and operation of the captive insurance company in order to
25-serve its public purpose;
26-(2) Establish a board of directors who shall serve in a volunteer
27-capacity. The membership of the board of directors shall include, but
28-need not be limited to, a real estate agent or broker, two owners of
29-residential buildings who have concrete foundations that have Substitute House Bill No. 7179
18+Section 1. (NEW) (Effective July 1, 2019) (a) For the purposes of this 1
19+section: 2
20+(1) "Applicant" means a person that files an application with the 3
21+commissioner pursuant to subdivision (1) of subsection (c) of this 4
22+section; 5
23+(2) "Captive insurance company" means the captive insurance 6
24+company established pursuant to section 38a-91vv of the general 7
25+statutes, as amended by this act; 8
26+(3) "Commissioner" means the Commissioner of Housing; and 9
27+(4) "Person" means an individual, corporation, partnership, limited 10
28+liability company, association, joint stock company, business trust, 11
29+unincorporated organization or other legal entity. 12
30+(b) The commissioner shall establish, within available 13
31+appropriations, a grant program to support the development of 14
32+methods and technologies that reduce, by an amount that is not less 15
33+than one hundred thirty-five thousand dollars, the average cost of 16
34+repairing or replacing concrete foundations in this state that have 17 Substitute Bill No. 7179
3035
31-Public Act No. 19-192 2 of 36
3236
33-deteriorated due to the presence of pyrrhotite, a chief executive or such
34-chief executive's designee of a municipality in which residential
35-buildings with concrete foundations that have deteriorated due to the
36-presence of pyrrhotite are located, an individual with professional
37-investment experience and currently registered as an investment
38-adviser pursuant to title 36b, the executive directors of the Capitol
39-Region Council of Governments and the [Eastern Region]
40-Northeastern Connecticut Council of Governments or such executive
41-directors' designees and representatives from the insurance and
42-banking industries, who shall not have professional relationships with
43-any bank or insurance company that has a financial interest in
44-residential buildings subject to the provisions of this section and
45-sections 7-374b, 8-441, 8-442, 8-443, 8-444, subparagraph (B) of
46-subdivision (20) of subsection (a) of section 12-701 and section 29-265f.
47-The speaker, the minority leader of the House of Representatives, the
48-president pro tempore of the Senate and the Senate Republican
49-president pro tempore shall each appoint a member of the General
50-Assembly as a nonvoting, ex-officio member of the board of directors.
51-It shall not constitute a conflict of interest for a member of the board of
52-directors, who is the owner of a residential building which has a
53-concrete foundation that has deteriorated due to the presence of
54-pyrrhotite, or the spouse or dependent child of such member, to apply
55-for or receive assistance from the captive insurance company
56-established under this section, to repair or replace such concrete
57-foundation, provided such member shall abstain from deliberation,
58-action or vote by the board of directors in specific respect to such
59-member's application or the application of such spouse or dependent
60-child;
61-(3) Develop eligibility requirements and underwriting guidelines for
62-financial assistance for repair or replacement of concrete foundations.
63-Such requirements and guidelines shall, not later than [thirty] fifteen
64-days prior to their adoption, amendment or modification, be published Substitute House Bill No. 7179
37+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
38+R01-HB.docx }
39+2 of 12
6540
66-Public Act No. 19-192 3 of 36
41+deteriorated due to the presence of pyrrhotite. For the purposes of this 18
42+section, the General Assembly finds and declares that the average cost 19
43+of repairing or replacing such a foundation is one hundred seventy-20
44+five thousand dollars. 21
45+(c) (1) Each person that develops a method or technology described 22
46+in subsection (b) of this section and wishes to receive a grant under this 23
47+section shall file an application with the commissioner that includes: 24
48+(A) Such person's name and address; 25
49+(B) A description of such method or technology; 26
50+(C) Information sufficient to demonstrate, to the satisfaction of the 27
51+captive insurance company, (i) that such method or technology will 28
52+reduce the average cost of repairing or replacing concrete foundations 29
53+in this state that have deteriorated due to the presence of pyrrhotite, 30
54+and (ii) the amount of such reduction; and 31
55+(D) Such additional information that the commissioner, in the 32
56+commissioner's discretion and in consultation with the captive 33
57+insurance company, may prescribe. 34
58+(2) Not later than thirty days after a person files an application with 35
59+the commissioner pursuant to subdivision (1) of this subsection, the 36
60+commissioner shall file the application with the captive insurance 37
61+company. 38
62+(d) If the captive insurance company notifies the commissioner, 39
63+pursuant to subparagraph (A) of subdivision (13) of subsection (b) of 40
64+section 38a-91vv of the general statutes, as amended by this act, that an 41
65+applicant is eligible to receive a grant pursuant to subsection (b) of this 42
66+section, the commissioner shall, not later than thirty days after 43
67+receiving such notice, award a grant to such applicant in one of the 44
68+following amounts: 45
69+(1) One million dollars, if the captive insurance company 46 Substitute Bill No. 7179
6770
68-on a public Internet web site maintained by the captive insurance
69-company;
70-[(4) Develop in coordination with the Department of Housing,
71-Connecticut Housing Finance Authority and participating lenders in
72-the Collapsing Foundations Credit Enhancements Program,
73-established pursuant to section 8-442, a single, unified application for
74-owners of residential buildings to apply for all financial assistance
75-available pursuant to this section and sections 8-442 and 8-443;]
76-[(5)] (4) Provide financial assistance to such owners of residential
77-buildings for the repair or replacement of concrete foundations that
78-have deteriorated due to the presence of pyrrhotite, including, but not
79-limited to, financial reimbursement to [homeowners] owners who
80-have had such repair or replacement performed prior to October 31,
81-2017;
82-[(6)] (5) Assist such owners of residential buildings to obtain
83-additional financing necessary to fully fund the repair or replacement
84-of concrete foundations that have deteriorated due to the presence of
85-pyrrhotite;
86-[(7)] (6) Approve contractors or other vendors for eligibility to
87-perform foundation repairs or replacements on behalf of claimants;
88-[(8)] (7) Disburse such financial assistance to approved contractors
89-or other vendors on behalf of claimants;
90-[(9)] (8) Ensure that the financial assistance is used solely for costs of
91-repairing and replacing concrete foundations that have deteriorated
92-due to the presence of pyrrhotite;
93-[(10)] (9) Require the disclosure of the amount of all financial
94-compensation received by an owner of such a residential building, if
95-any, arising out of a claim for coverage under the property coverage Substitute House Bill No. 7179
9671
97-Public Act No. 19-192 4 of 36
72+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
73+R01-HB.docx }
74+3 of 12
9875
99-provisions of the personal risk insurance policy, including, but not
100-limited to, a homeowners policy, for foundation deterioration due to
101-the presence of pyrrhotite and ensure that such amount is considered
102-when determining the amount of financial assistance offered to such
103-owner;
104-[(11)] (10) When appropriate, apply for, qualify for and receive any
105-federal funds made available under any federal act, for assistance to
106-owners of residential buildings [and residential condominium units]
107-having concrete foundations that have deteriorated due to the presence
108-of pyrrhotite. To the extent permissible under federal law, all such
109-federal funds shall be deposited into the Crumbling Foundations
110-Assistance Fund established pursuant to section 8-441; and
111-[(12)] (11) Enter into agreements, as necessary, with the Connecticut
112-Housing Finance Authority and any participating lender, as defined in
113-section 8-442, to develop and implement additional loan programs or
114-financial products to assist such owners to repair or replace concrete
115-foundations that have deteriorated due to the presence of pyrrhotite,
116-while employing terms and conditions that are preferable to the open
117-market.
118-(c) Except as provided in subsection (d) of this section, such captive
119-insurance company shall not be considered a state agency for purposes
120-of any provision of the general statutes, and shall not be considered to
121-perform a governmental function for purposes of chapter 14. Such
122-captive insurance company may, subject to the provisions of this
123-section, do all things necessary and desirable in its discretion to
124-accomplish its purposes, including hiring employees and contracting
125-for administrative or operational services, and entering into
126-agreements with the Connecticut Housing Finance Authority created
127-pursuant to section 8-244, as amended by this act, and any
128-participating lender, as defined in section 8-442, to develop and
129-implement additional loan programs or financial products that will Substitute House Bill No. 7179
76+determines that the method or technology described in the applicant's 47
77+application will reduce the average cost of repairing or replacing 48
78+concrete foundations in this state that have deteriorated due to the 49
79+presence of pyrrhotite by an amount that is not less than one hundred 50
80+thirty-five thousand dollars; 51
81+(2) Two million dollars, if the captive insurance company 52
82+determines that the method or technology described in the applicant's 53
83+application will reduce the average cost of repairing or replacing 54
84+concrete foundations in this state that have deteriorated due to the 55
85+presence of pyrrhotite by an amount that is greater than one hundred 56
86+thirty-five thousand dollars but less than one hundred sixty-five 57
87+thousand dollars; or 58
88+(3) Five million dollars, if the captive insurance company 59
89+determines that the method or technology described in the applicant's 60
90+application will reduce the average cost of repairing or replacing 61
91+concrete foundations in this state that have deteriorated due to the 62
92+presence of pyrrhotite by an amount that is not less than one hundred 63
93+sixty-five thousand dollars. 64
94+(e) The commissioner may adopt regulations, in accordance with 65
95+chapter 54 of the general statutes, to carry out the provisions of this 66
96+section. 67
97+Sec. 2. Subsections (b) to (h), inclusive, of section 38a-91vv of the 68
98+general statutes are repealed and the following is substituted in lieu 69
99+thereof (Effective July 1, 2019): 70
100+(b) In addition to any other requirements imposed by law applicable 71
101+to captive insurance companies, the captive insurance company 72
102+established pursuant to this section shall: 73
103+(1) Upon request of the joint standing committees of the General 74
104+Assembly having cognizance of matters relating to planning and 75
105+development, public safety and housing, or the Governor, make 76
106+recommendations regarding the expansion of eligibility for financial 77 Substitute Bill No. 7179
130107
131-Public Act No. 19-192 5 of 36
132108
133-assist owners of residential buildings to repair or replace concrete
134-foundations that have deteriorated due to the presence of pyrrhotite on
135-terms and conditions that are preferable to the open market. Not more
136-than ten per cent of all moneys allocated or made available to the
137-captive insurance company in any calendar year shall be used for
138-administrative or operational costs.
139-(d) Employees and agents of the captive insurance company shall
140-not be deemed state employees, except that employees and directors
141-shall be subject to the provisions of sections 1-84, 1-84a, 1-84b, 1-85 and
142-1-86. Any agent, consultant or contractor of the captive insurance
143-company shall be subject to the provisions of sections 1-86e and 1-
144-101nn. The Office of State Ethics shall have the authority to enforce the
145-provisions of this subsection.
146-(e) Notwithstanding sections 38a-11 and 38a-91bb, the captive
147-insurance company shall not be required to pay a license fee for the
148-first year of licensure or a renewal fee for any year thereafter, as set
149-forth in said sections.
150-(f) In addition to any report required to be filed by not-for-profit
151-entities generally under regulations of the Internal Revenue Service,
152-the captive insurance company shall submit quarterly reports to the
153-joint standing committees of the General Assembly having cognizance
154-of matters relating to insurance, finance, planning and development,
155-housing and public safety on its operation and financial condition.
156-Such quarterly reports shall include, but need not be limited to,
157-information concerning: (1) Moneys allocated or made available to it
158-pursuant to this section, (2) total financial assistance and financial
159-assistance, by town, provided to owners of such residential buildings
160-pursuant to this section, (3) administrative and operational
161-expenditures, (4) the total number and number, by town, of
162-applications for assistance received during the quarter and to date, (5)
163-the total number and number, by town, of applications for assistance Substitute House Bill No. 7179
109+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
110+R01-HB.docx }
111+4 of 12
164112
165-Public Act No. 19-192 6 of 36
113+assistance pursuant to this section and modifications to improve the 78
114+efficiency and operation of the captive insurance company in order to 79
115+serve its public purpose; 80
116+(2) Establish a board of directors who shall serve in a volunteer 81
117+capacity. The membership of the board of directors shall include, but 82
118+need not be limited to, a real estate agent or broker, two owners of 83
119+residential buildings who have concrete foundations that have 84
120+deteriorated due to the presence of pyrrhotite, a chief executive or such 85
121+chief executive's designee of a municipality in which residential 86
122+buildings with concrete foundations that have deteriorated due to the 87
123+presence of pyrrhotite are located, an individual with professional 88
124+investment experience and currently registered as an investment 89
125+adviser pursuant to title 36b, the executive directors of the Capitol 90
126+Region Council of Governments and the Eastern Region Council of 91
127+Governments or such executive directors' designees and 92
128+representatives from the insurance and banking industries, who shall 93
129+not have professional relationships with any bank or insurance 94
130+company that has a financial interest in residential buildings subject to 95
131+the provisions of this section and sections 7-374b, 8-441, 8-442, 8-443, 8-96
132+444, subparagraph (B) of subdivision (20) of subsection (a) of section 97
133+12-701 and section 29-265f. The speaker, the minority leader of the 98
134+House of Representatives, the president pro tempore of the Senate and 99
135+the Senate Republican president pro tempore shall each appoint a 100
136+member of the General Assembly as a nonvoting, ex-officio member of 101
137+the board of directors. It shall not constitute a conflict of interest for a 102
138+member of the board of directors, who is the owner of a residential 103
139+building which has a concrete foundation that has deteriorated due to 104
140+the presence of pyrrhotite, or the spouse or dependent child of such 105
141+member, to apply for or receive assistance from the captive insurance 106
142+company established under this section, to repair or replace such 107
143+concrete foundation, provided such member shall abstain from 108
144+deliberation, action or vote by the board of directors in specific respect 109
145+to such member's application or the application of such spouse or 110
146+dependent child; 111 Substitute Bill No. 7179
166147
167-granted during the quarter and to date, (6) the average time to process
168-applications, and (7) the total number and number, by town, of
169-applications pending and amount of such claims.
170-(g) The joint standing committees of the General Assembly having
171-cognizance of matters relating to insurance, finance, planning and
172-development, housing and public safety shall, not less than annually,
173-hold a joint public hearing on the operation and financial condition of
174-the captive insurance company.
175-(h) A decision on an application for assistance pursuant to this
176-section shall be made in writing and provided to the [homeowner]
177-owner and shall include the information relied upon and the basis for
178-such decision, including the relevant eligibility and underwriting
179-criteria. An owner of such a residential building may request a review
180-of any decision by the captive insurance company relating to such
181-[homeowner] owner not later than thirty days after the decision. A
182-final determination on such a request for review shall be made in
183-writing and provided to the [homeowner] owner not later than thirty
184-days after receipt of the [homeowner's] owner's request, unless an
185-extension is agreed to by the [homeowner] owner. The final
186-determination shall be subject to approval by the board of directors.
187-There shall be no right to appeal such final determination.
188-Sec. 2. Section 8-440 of the general statutes is repealed and the
189-following is substituted in lieu thereof (Effective July 1, 2019):
190-For purposes of sections 7-374b, sections 8-441 to 8-444, inclusive,
191-[and] sections 12-701, 29-265f and 38a-91vv, as amended by this act,
192-and sections 7 to 11, inclusive, of this act, "residential building" means
193-[a one-family, two-family, three-family or four-family dwelling
194-including, but not limited to, a condominium unit or dwelling in a
195-planned unit development] (1) a single-family or multifamily
196-residential dwelling, including, but not limited to, (A) a residential Substitute House Bill No. 7179
197148
198-Public Act No. 19-192 7 of 36
149+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
150+R01-HB.docx }
151+5 of 12
199152
200-unit in a condominium, as such terms are defined or used in section
201-47-68a, or (B) a unit that is used for residential purposes and located in
202-a common interest community, as such terms are defined in section 47-
203-202, and (2) a building containing one or more of the units described in
204-subparagraph (A) or (B) of subdivision (1) of this section.
205-Sec. 3. Section 38a-331 of the general statutes is repealed and the
206-following is substituted in lieu thereof (Effective from passage):
207-(a) [Beginning on January 1, 2019, until December 31, 2029, there
208-shall be imposed a surcharge at the rate of twelve dollars on the named
209-insured under each policy of homeowners insurance delivered, issued
210-for delivery, renewed, amended or endorsed on or after January 1,
211-2019, for a personal risk insurance policy on owned dwellings with
212-four or fewer units or on condominiums.] (1) There is imposed a
213-twelve-dollar surcharge on the issuance or renewal of each insurance
214-policy providing:
215-(A) Personal risk insurance coverage for an owned dwelling in this
216-state with four or fewer units, except for a mobile home;
217-(B) Coverage for an individual unit in this state that is part of a
218-condominium, as such terms are defined in section 47-68a; or
219-(C) Coverage for an individual unit in this state that is part of a
220-common interest community and exclusively used for residential
221-purposes, as such terms are defined in section 47-202.
222-(2) The surcharge imposed under this subsection shall be assessed
223-on insurance policies issued or renewed during the period beginning
224-on January 1, 2019, and ending on December 31, 2029. Such surcharge
225-is not premium and shall not be considered premium for any purpose.
226-(b) Payment of the surcharge imposed under subsection (a) of this
227-section shall be the obligation of the person that is first listed as an Substitute House Bill No. 7179
153+(3) Develop eligibility requirements and underwriting guidelines for 112
154+financial assistance for repair or replacement of concrete foundations. 113
155+Such requirements and guidelines shall, not later than thirty days prior 114
156+to their adoption, amendment or modification, be published on a 115
157+public Internet web site maintained by the captive insurance company; 116
158+(4) Develop in coordination with the Department of Housing, 117
159+Connecticut Housing Finance Authority and participating lenders in 118
160+the Collapsing Foundations Credit Enhancements Program, 119
161+established pursuant to section 8-442, a single, unified application for 120
162+owners of residential buildings to apply for all financial assistance 121
163+available pursuant to this section and sections 8-442 and 8-443; 122
164+(5) Provide financial assistance to such owners of residential 123
165+buildings for the repair or replacement of concrete foundations that 124
166+have deteriorated due to the presence of pyrrhotite, including, but not 125
167+limited to, financial reimbursement to [homeowners] owners who 126
168+have had such repair or replacement performed prior to October 31, 127
169+2017; 128
170+(6) Assist such owners of residential buildings to obtain additional 129
171+financing necessary to fully fund the repair or replacement of concrete 130
172+foundations that have deteriorated due to the presence of pyrrhotite; 131
173+(7) Approve contractors or other vendors for eligibility to perform 132
174+foundation repairs or replacements on behalf of claimants; 133
175+(8) Disburse such financial assistance to approved contractors or 134
176+other vendors on behalf of claimants; 135
177+(9) Ensure that the financial assistance is used solely for costs of 136
178+repairing and replacing concrete foundations that have deteriorated 137
179+due to the presence of pyrrhotite; 138
180+(10) Require the disclosure of the amount of all financial 139
181+compensation received by an owner of such a residential building, if 140
182+any, arising out of a claim for coverage under the property coverage 141 Substitute Bill No. 7179
228183
229-Public Act No. 19-192 8 of 36
230184
231-insured under the policy, provided collection and remittance of such
232-surcharge may be effected in such manner as the insurer, insured and
233-any mortgagee may reasonably determine. Such surcharge is payable
234-in full upon commencement or renewal of coverage, and no portion of
235-such surcharge shall be reimbursed, whether on policy cancellation or
236-otherwise.
237-[(b)] (c) (1) Acting on behalf of, and as a collection agent of the
238-Healthy Homes Fund established pursuant to section 8-446, as
239-amended by this act, each admitted [and nonadmitted] insurer, or, for
240-nonadmitted insurers, one or more surplus lines brokers licensed
241-pursuant to section 38a-794 procuring from the nonadmitted insurer
242-an insurance policy providing coverage of a type described in
243-subdivision (1) of subsection (a) of this section, shall remit to the
244-Insurance Commissioner, not later than the thirtieth day of April
245-annually, all surcharges imposed under subsection (a) of this section
246-on the named insured that were collected during the calendar year
247-next preceding. [for each such policy delivered, issued or renewed
248-before January first of the then current calendar year.] Each such
249-remittance shall include documentation, in the form and manner
250-prescribed by the commissioner, to substantiate the total surcharge
251-amount being remitted by such insurer or licensee.
252-(2) All such remittances under subdivision (1) of this subsection,
253-except for the amount of remittances equal to the cost of funding an
254-administrative officer position at the Insurance Department to facilitate
255-the surcharge collection, shall be deposited in the Healthy Homes
256-Fund established in section 8-446, as amended by this act. Not later
257-than thirty days after such deposit in the Healthy Homes Fund, eighty-
258-five per cent of such deposits shall be transferred to the Crumbling
259-Foundations Assistance Fund established in section 8-441.
260-(3) The surcharge imposed [pursuant to] under subsection (a) of this
261-section shall constitute a special purpose assessment for the purposes Substitute House Bill No. 7179
185+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
186+R01-HB.docx }
187+6 of 12
262188
263-Public Act No. 19-192 9 of 36
189+provisions of the personal risk insurance policy, including, but not 142
190+limited to, a homeowners policy, for foundation deterioration due to 143
191+the presence of pyrrhotite and ensure that such amount is considered 144
192+when determining the amount of financial assistance offered to such 145
193+owner; 146
194+(11) When appropriate, apply for, qualify for and receive any 147
195+federal funds made available under any federal act, for assistance to 148
196+owners of residential buildings [and residential condominium units] 149
197+having concrete foundations that have deteriorated due to the presence 150
198+of pyrrhotite. To the extent permissible under federal law, all such 151
199+federal funds shall be deposited into the Crumbling Foundations 152
200+Assistance Fund established pursuant to section 8-441; [and] 153
201+(12) Enter into agreements, as necessary, with the Connecticut 154
202+Housing Finance Authority and any participating lender, as defined in 155
203+section 8-442, to develop and implement additional loan programs or 156
204+financial products to assist such owners to repair or replace concrete 157
205+foundations that have deteriorated due to the presence of pyrrhotite, 158
206+while employing terms and conditions that are preferable to the open 159
207+market; [.] and 160
208+(13) (A) Establish an innovation board within the captive insurance 161
209+company that consists of volunteer members. The membership of the 162
210+innovation board shall include, but need not be limited to, an attorney 163
211+who is a member of the bar of this state with experience in intellectual 164
212+property law, a chemist, an individual with experience in the 165
213+construction industry, a licensed professional engineer who is a 166
214+structural engineer, a materials scientist, an individual with experience 167
215+in the technology industry and a venture capitalist. The board of 168
216+directors of the captive insurance company shall appoint the members 169
217+of the innovation board and each member of the innovation board 170
218+shall have one vote on such innovation board. The innovation board 171
219+shall, on behalf of the captive insurance company, (i) review each 172
220+application filed by the Commissioner of Housing with the captive 173
221+insurance company pursuant to subdivision (2) of subsection (c) of 174 Substitute Bill No. 7179
264222
265-of section 12-211.
266-[(c)] (d) The commissioner may adopt regulations, in accordance
267-with chapter 54, to implement the provisions of this section.
268-Sec. 4. Subsections (a) and (b) of section 8-446 of the general statutes
269-are repealed and the following is substituted in lieu thereof (Effective
270-from passage):
271-(a) There is established an account to be known as the "Healthy
272-Homes Fund" which shall be a separate, nonlapsing account within the
273-General Fund. The account shall contain any moneys required by law
274-to be deposited in the account. Moneys in the account shall be
275-expended by the Department of Housing for the purposes of:
276-(1) Funding of not more than one million dollars, from remittances
277-transferred pursuant to section 38a-331, as amended by this act, for the
278-period beginning January 1, 2019, and ending December 31, 2019, shall
279-be remitted to the Department of Economic and Community
280-Development to be used for grants-in-aid to homeowners with homes
281-located in the immediate vicinity of the West River in the Westville
282-section of New Haven and Woodbridge for structurally damaged
283-homes due to subsidence and to homeowners with homes abutting the
284-Yale Golf Course in the Westville section of New Haven for damage to
285-such homes from water infiltration or structural damage due to
286-subsidence; and
287-(2) Funding a program, and any related administrative expense, to
288-reduce health and safety hazards in residential dwellings in
289-Connecticut, including, but not limited to, lead, radon and other
290-contaminants or conditions, through removal, remediation, abatement
291-and other appropriate methods. For purposes of this subdivision,
292-"administrative expense" means any administrative or other cost or
293-expense incurred by the Department of Housing in carrying out the Substitute House Bill No. 7179
294223
295-Public Act No. 19-192 10 of 36
224+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
225+R01-HB.docx }
226+7 of 12
296227
297-provisions of this section, including, but not limited to the hiring of
298-necessary employees and entering into necessary contracts.
299-(b) The Department of Housing shall notify the Department of
300-Public Health not later than thirty days after the deposit of remittances
301-in the Healthy Homes Fund pursuant to subdivision (2) of subsection
302-[(b)] (c) of section 38a-331, as amended by this act. Not later than thirty
303-days after the deposit of remittances pursuant to subdivision (2) of
304-subsection [(b)] (c) of section 38a-331, as amended by this act, the
305-Department of Public Health shall notify each municipal health
306-department in the state annually regarding funds available pursuant to
307-the Healthy Homes Fund established pursuant to subsection (a) of this
308-section.
309-Sec. 5. Section 20-327b of the general statutes is repealed and the
310-following is substituted in lieu thereof (Effective October 1, 2019):
311-(a) Except as otherwise provided in this section, each person who
312-offers residential property in the state for sale, exchange or for lease
313-with option to buy, shall provide a written residential condition report
314-or reports to the prospective purchaser at any time prior to the
315-prospective purchaser's execution of any binder, contract to purchase,
316-option or lease containing a purchase option. A photocopy, duplicate
317-original, facsimile transmission or other exact reproduction or
318-duplicate of the written residential condition report or reports
319-containing the prospective purchaser's written receipt shall be attached
320-to any written offer, binder or contract to purchase. A photocopy,
321-duplicate original, facsimile transmission or other exact reproduction
322-or duplicate of the written residential condition report or reports
323-containing the signatures of both seller and purchaser shall be attached
324-to any agreement to purchase the property.
325-(b) The following shall be exempt from the provisions of this
326-section: (1) Any transfer from one or more co-owners solely to one or Substitute House Bill No. 7179
228+section 1 of this act, (ii) determine, by a majority of the members of 175
229+such board voting, (I) whether the person who filed such application is 176
230+eligible for a grant pursuant to said section, and (II) if the method or 177
231+technology described in such application will reduce the average cost 178
232+of repairing or replacing concrete foundations in this state that have 179
233+deteriorated due to the presence of pyrrhotite by an amount that is not 180
234+less than one hundred thirty-five thousand dollars, greater than one 181
235+hundred thirty-five thousand dollars but less than one hundred sixty-182
236+five thousand dollars or not less than one hundred sixty-five thousand 183
237+dollars, and (iii) notify the commissioner, not later than thirty days 184
238+after the innovation board received such application, of such 185
239+determination. 186
240+(B) No member of the innovation board established pursuant to 187
241+subparagraph (A) of this subdivision shall participate in any 188
242+deliberations concerning, vote on or otherwise take any action with 189
243+respect to an application filed with the innovation board pursuant to 190
244+subdivision (2) of subsection (c) of section 1 of this act if such member, 191
245+or a spouse or dependent child of such member, has a pecuniary 192
246+interest in the person who filed such application. 193
247+(c) Except as provided in subsection (d) of this section, such captive 194
248+insurance company shall not be considered a state agency for purposes 195
249+of any provision of the general statutes, and shall not be considered to 196
250+perform a governmental function for purposes of chapter 14. Such 197
251+captive insurance company may, subject to the provisions of this 198
252+section, do all things necessary and desirable in its discretion to 199
253+accomplish its purposes, including hiring employees and contracting 200
254+for administrative or operational services, and entering into 201
255+agreements with the Connecticut Housing Finance Authority created 202
256+pursuant to section 8-244 and any participating lender, as defined in 203
257+section 8-442, to develop and implement additional loan programs or 204
258+financial products that will assist owners of residential buildings to 205
259+repair or replace concrete foundations that have deteriorated due to 206
260+the presence of pyrrhotite on terms and conditions that are preferable 207 Substitute Bill No. 7179
327261
328-Public Act No. 19-192 11 of 36
329262
330-more of the co-owners; (2) transfers made to the spouse, mother,
331-father, brother, sister, child, grandparent or grandchild of the
332-transferor where no consideration is paid; (3) [transfers pursuant to an
333-order of the court; (4)] transfers of newly-constructed residential real
334-property for which an implied warranty is provided under chapter
335-827; [(5)] (4) transfers made by executors, administrators, trustees or
336-conservators; [(6)] (5) transfers by the federal government, any political
337-subdivision thereof or any corporation, institution or quasi-
338-governmental agency chartered by the federal government; [(7)
339-transfers by deed in lieu of foreclosure; (8)] (6) transfers by [the state of
340-Connecticut or] this state; (7) except as provided in subsections (g) and
341-(h) of this section, transfers by any political subdivision [thereof; (9)] of
342-this state; (8) transfers of property which was the subject of a contract
343-or option entered into prior to January 1, 1996; and [(10)] (9) except as
344-provided in subsections (g) and (h) of this section, any transfer of
345-property acquired by a judgment of strict foreclosure or by foreclosure
346-by sale or by a deed in lieu of foreclosure.
347-(c) The provisions of this section shall apply only to transfers by
348-sale, exchange or lease with option to buy, of residential real property
349-consisting of not less than one nor more than four dwelling units
350-which shall include cooperatives and condominiums, and shall apply
351-to all transfers, with or without the assistance of a licensed real estate
352-broker or salesperson, as defined in section 20-311.
353-(d) The Commissioner of Consumer Protection shall, within
354-available appropriations, prescribe the written residential [disclosure
355-report] condition reports required by this section and sections 20-327c
356-to 20-327e, inclusive, as amended by this act. The written residential
357-[disclosure report] condition reports shall be based upon [a template]
358-templates that the commissioner shall prescribe. Such [template]
359-templates shall: Fit on pages being not more than eight and one-half
360-inches in height and eleven inches in width, with type size no smaller Substitute House Bill No. 7179
263+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
264+R01-HB.docx }
265+8 of 12
361266
362-Public Act No. 19-192 12 of 36
267+to the open market. Not more than ten per cent of all moneys allocated 208
268+or made available to the captive insurance company in any calendar 209
269+year shall be used for administrative or operational costs. 210
270+(d) Employees and agents of the captive insurance company shall 211
271+not be deemed state employees, except that employees and directors 212
272+shall be subject to the provisions of sections 1-84, 1-84a, 1-84b, 1-85 and 213
273+1-86. Any agent, consultant or contractor of the captive insurance 214
274+company shall be subject to the provisions of sections 1-86e and 1-215
275+101nn. The Office of State Ethics shall have the authority to enforce the 216
276+provisions of this subsection. 217
277+(e) Notwithstanding sections 38a-11 and 38a-91bb, the captive 218
278+insurance company shall not be required to pay a license fee for the 219
279+first year of licensure or a renewal fee for any year thereafter, as set 220
280+forth in said sections. 221
281+(f) In addition to any report required to be filed by not-for-profit 222
282+entities generally under regulations of the Internal Revenue Service, 223
283+the captive insurance company shall submit quarterly reports to the 224
284+joint standing committees of the General Assembly having cognizance 225
285+of matters relating to insurance, finance, planning and development, 226
286+housing and public safety on its operation and financial condition. 227
287+Such quarterly reports shall include, but need not be limited to, 228
288+information concerning: (1) Moneys allocated or made available to it 229
289+pursuant to this section, (2) total financial assistance and financial 230
290+assistance, by town, provided to owners of such residential buildings 231
291+pursuant to this section, (3) administrative and operational 232
292+expenditures, (4) the total number and number, by town, of 233
293+applications for assistance received during the quarter and to date, (5) 234
294+the total number and number, by town, of applications for assistance 235
295+granted during the quarter and to date, (6) the average time to process 236
296+applications, and (7) the total number and number, by town, of 237
297+applications pending and amount of such claims. 238
298+(g) The joint standing committees of the General Assembly having 239 Substitute Bill No. 7179
363299
364-than nine-point type, other than checkboxes or section headers, which
365-may be in a smaller size; include the address of the subject property on
366-each page; include page numbers on each page; include section
367-headings in bold type and include space for the buyer and the seller's
368-initials on each page, except the signature page. [The report] Each
369-written residential condition report, other than the written residential
370-condition report required pursuant to subsections (g) and (h) of this
371-section, shall contain the following, in the order indicated:
372-(1) A section entitled "Instructions to Sellers"
373-You MUST answer ALL questions to the best of your knowledge.
374-Identify/Disclose any problems regarding the subject property.
375-YOUR REAL ESTATE LICENSEE CANNOT COMPLETE THIS
376-FORM ON YOUR BEHALF.
377-UNK means Unknown, N/A means Not Applicable.
378-If you need additional space to complete any answer or explanation,
379-attach additional page(s) to this form. Include subject property
380-address, seller's name and the date.
381-(2) Pursuant to the Uniform Property Condition Disclosure Act, the
382-seller is obligated to answer the following questions and to disclose
383-herein any knowledge of any problem regarding the following:
384-(A) A subsection entitled "Subject Property"
385-(i) Name of seller(s)
386-(ii) Street address, municipality, zip code
387-(B) A subsection entitled "General Information"
388-(i) Indicate the YEAR the structure was built: Substitute House Bill No. 7179
389300
390-Public Act No. 19-192 13 of 36
301+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
302+R01-HB.docx }
303+9 of 12
391304
392-(ii) Indicate HOW LONG you have occupied the property: If not
393-applicable, indicate with N/A.
394-(iii) Does anyone else claim to own any part of your property,
395-including, but not limited to, any encroachment(s)? If YES, explain:
396-(iv) Does anyone other than you have or claim to have any right to
397-use any part of your property, including, but not limited to, any
398-easement or right-of-way? If YES, explain:
399-(v) Is the property in a flood hazard area or an inland wetlands
400-area? If YES, explain:
401-(vi) Do you have any reason to believe that the municipality in
402-which the subject property is located may impose any assessment for
403-purposes such as sewer installation, sewer improvements, water main
404-installation, water main improvements, sidewa lks or other
405-improvements? If YES, explain:
406-(vii) Is the property located in a municipally designated village
407-district, municipally designated historic district or listed on the
408-National Register of Historic Places? If YES, explain:
409-(viii) Special Statement: Information concerning village districts and
410-historic districts may be obtained from the municipality's village or
411-historic district commission, if applicable.
412-(ix) Is the property located in a special tax district? If YES, please
413-explain:
414-(x) Is the property subject to any type of land use restrictions, other
415-than those contained within the property's chain of title or that are
416-necessary to comply with state laws or municipal zoning? If YES,
417-explain:
418-(xi) Is the property located in a common interest community? If Substitute House Bill No. 7179
305+cognizance of matters relating to insurance, finance, planning and 240
306+development, housing and public safety shall, not less than annually, 241
307+hold a joint public hearing on the operation and financial condition of 242
308+the captive insurance company. 243
309+(h) [A] Except for an application filed with the innovation board 244
310+established pursuant to subdivision (13) of subsection (b) of this 245
311+section, a decision on an application for assistance pursuant to this 246
312+section shall be made in writing and provided to the [homeowner] 247
313+owner and shall include the information relied upon and the basis for 248
314+such decision, including the relevant eligibility and underwriting 249
315+criteria. An owner of such a residential building may request a review 250
316+of any decision by the captive insurance company relating to such 251
317+[homeowner] owner not later than thirty days after the decision. A 252
318+final determination on such a request for review shall be made in 253
319+writing and provided to the [homeowner] owner not later than thirty 254
320+days after receipt of the [homeowner's] owner's request, unless an 255
321+extension is agreed to by the [homeowner] owner. The final 256
322+determination shall be subject to approval by the board of directors. 257
323+There shall be no right to appeal such final determination. 258
324+Sec. 3. Section 8-440 of the general statutes is repealed and the 259
325+following is substituted in lieu thereof (Effective July 1, 2019): 260
326+For purposes of sections 7-374b, sections 8-441 to 8-444, inclusive, 261
327+and sections 12-701, 29-265f and 38a-91vv, as amended by this act, 262
328+"residential building" means [a one-family, two-family, three-family or 263
329+four-family dwelling including, but not limited to, a condominium 264
330+unit or dwelling in a planned unit development] (1) a single-family or 265
331+multifamily residential dwelling, including, but not limited to, (A) a 266
332+residential unit in a condominium, as such terms are defined or used 267
333+in section 47-68a, and (B) a unit that is used for residential purposes 268
334+and located in a common interest community, as such terms are 269
335+defined in section 47-202, and (2) a building containing one or more of 270
336+the residential dwellings described in subdivision (1) of this section. 271 Substitute Bill No. 7179
419337
420-Public Act No. 19-192 14 of 36
421338
422-YES, is it subject to any community or association dues or fees? Please
423-explain:
424-(xii) Do you have any knowledge of prior or pending litigation,
425-government agency or administrative actions, orders or liens on the
426-property related to the release of any hazardous substance? If YES,
427-please explain:
428-(C) A subsection entitled "Leased Equipment"
429-Does the property include any Leased or Rented Equipment that
430-would necessitate or obligate either of the following: The assignment
431-or transfer of the lease or rental agreement(s) to the buyer or the
432-replacement or substitution of the equipment by the buyer? If YES,
433-indicate by checking ALL items that apply: PROPANE FUEL TANK;
434-WATER HEATER; SECURITY ALARM SYSTEM; FIRE ALARM
435-SYSTEM; SATELLITE DISH ANTENNA ; WATER TREATMENT
436-SYSTEM; SOLAR DEVICES; MAJOR APPLIANCES; OTHER
437-(D) A subsection entitled "Mechanical/Utility Systems"
438-(i) Heating system problems? If YES, explain. List Fuel Types.
439-(ii) Hot water heater Type: Age: Hot water problems? If YES,
440-explain:
441-(iii) Is there an underground storage tank? If YES, give AGE of tank
442-and LOCATION.
443-(iv) Are you aware of any problems with the underground storage
444-tank? If YES, explain:
445-(v) During the time you have owned the property, has there ever
446-been an underground storage tank located on the property? If YES, has
447-it been removed? If YES, what was the date of removal and what was
448-the name and address of the person or business who removed such Substitute House Bill No. 7179
339+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
340+R01-HB.docx }
341+10 of 12
449342
450-Public Act No. 19-192 15 of 36
343+Sec. 4. Section 38a-331 of the general statutes is repealed and the 272
344+following is substituted in lieu thereof (Effective from passage): 273
345+(a) (1) [Beginning on January 1, 2019, until December 31, 2029, there 274
346+shall be imposed a surcharge at the rate of twelve dollars on the named 275
347+insured under each policy of homeowners insurance delivered, issued 276
348+for delivery, renewed, amended or endorsed on or after January 1, 277
349+2019, for a personal risk insurance policy on owned dwellings with 278
350+four or fewer units or on condominiums.] There is imposed a twelve-279
351+dollar surcharge on the issuance or renewal of each insurance policy 280
352+providing: 281
353+(A) Personal risk insurance coverage for an owned dwelling in this 282
354+state with four or fewer units, except for a mobile home; 283
355+(B) Coverage for an individual unit in this state that is part of a 284
356+condominium, as such terms are defined in section 47-68a; or 285
357+(C) Coverage for an individual unit in this state that is part of a 286
358+common interest community and exclusively used for residential 287
359+purposes, as such terms are defined in section 47-202. 288
360+(2) The surcharge imposed under this subsection shall be assessed 289
361+on insurance policies issued or renewed during the period beginning 290
362+on January 1, 2019, and ending on December 31, 2029. Such surcharge 291
363+is not premium and shall not be considered premium for any purpose. 292
364+(b) Payment of the surcharge imposed under subsection (a) of this 293
365+section shall be the obligation of the person that is first listed as an 294
366+insured under the policy, provided collection and remittance of such 295
367+surcharge may be effected in such manner as the insurer, insured and 296
368+any mortgagee may reasonably determine. Such surcharge is payable 297
369+in full upon commencement or renewal of coverage, and no portion of 298
370+such surcharge shall be reimbursed, whether on policy cancellation or 299
371+otherwise. 300
372+[(b)] (c) (1) Acting on behalf of, and as a collection agent of the 301 Substitute Bill No. 7179
451373
452-underground storage tank? Provide any and all written documentation
453-of such removal within your control or possession by attaching a copy
454-of such documentation to this form.
455-(vi) Air conditioning problems? If YES, explain: Air conditioning
456-Type: Central; Window; Other
457-(vii) Plumbing system problems? If YES, explain:
458-(viii) Electrical System problems? If YES, explain:
459-(ix) Electronic security system problems? If YES, explain:
460-(x) Are there carbon monoxide or smoke detectors located in a
461-dwelling on the property? If YES, state the NUMBER of such detectors
462-and whether there have been problems with such detectors;
463-(xi) Fire sprinkler system problems? If YES, explain:
464-(E) A subsection entitled "Water System"
465-(i) Domestic Water System Type: Public; Private Well; Other
466-(ii) If Public Water:
467-(I) Is there a separate expense/fee for water usage? If YES, is the
468-expense/fee for water usage flat or metered? Give the AMOUNT and
469-explain:
470-(II) Are there any UNPAID water charges? If YES, state the amount
471-unpaid:
472-(iii) If Private Well:
473-Has the well water been tested for contaminants/volatile organic
474-compounds? If YES, attach a copy of the report. Substitute House Bill No. 7179
475374
476-Public Act No. 19-192 16 of 36
375+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
376+R01-HB.docx }
377+11 of 12
477378
478-(iv) If Public Water or Private Well: Are you aware of any problems
479-with the well, or with the water quality, quantity, recovery, or
480-pressure? If YES, explain:
481-(F) A subsection entitled "Sewage Disposal System"
482-(i) Sewage Disposal System Type: Public; Septic; Cesspool; Other
483-(ii) If Public Sewer:
484-(I) Is there a separate charge made for sewer use? If YES, is it Flat or
485-Metered?
486-(II) If it is a Flat amount, state amount and due dates:
487-(III) Are there any UNPAID sewer charges? If any unpaid sewer
488-charges, state the amount:
489-(iii) If Private:
490-(I) Name of service company
491-(II) Date last pumped: AND frequency:
492-(III) For any sewage system, are there problems? If YES, explain:
493-(G) A subsection entitled "Asbestos/Lead"
494-(i) Are asbestos containing insulation or building materials present?
495-If YES, location:
496-(ii) Is lead paint present? If YES, location:
497-(iii) Is lead plumbing present? If YES, location:
498-(H) A subsection entitled "Building/Structure/Improvements"
499-(i) Is the foundation made of concrete? If NO, explain: Substitute House Bill No. 7179
379+Healthy Homes Fund established pursuant to section 8-446, as 302
380+amended by this act, each admitted and nonadmitted insurer, or one 303
381+or more surplus lines brokers licensed pursuant to section 38a-794 304
382+procuring from a nonadmitted insurer an insurance policy providing 305
383+coverage of a type described in subdivision (1) of subsection (a) of this 306
384+section, shall remit to the Insurance Commissioner, not later than the 307
385+thirtieth day of April annually, all surcharges imposed under 308
386+subsection (a) of this section on the named insured that were collected 309
387+during the calendar year next preceding. [for each such policy 310
388+delivered, issued or renewed before January first of the then current 311
389+calendar year.] Each such remittance shall include documentation, in 312
390+the form and manner prescribed by the commissioner, to substantiate 313
391+the total surcharge amount being remitted by such [insurer or licensee] 314
392+admitted or nonadmitted insurer or surplus lines broker. 315
393+(2) All such remittances under subdivision (1) of this subsection, 316
394+except for the amount of remittances equal to the cost of funding an 317
395+administrative officer position at the Insurance Department to facilitate 318
396+the surcharge collection, shall be deposited in the Healthy Homes 319
397+Fund established in section 8-446, as amended by this act. Not later 320
398+than thirty days after such deposit in the Healthy Homes Fund, eighty-321
399+five per cent of such deposits shall be transferred to the Crumbling 322
400+Foundations Assistance Fund established in section 8-441. 323
401+(3) The surcharge imposed [pursuant to] under subsection (a) of this 324
402+section shall constitute a special purpose assessment for the purposes 325
403+of section 12-211. 326
404+[(c)] (d) The commissioner may adopt regulations, in accordance 327
405+with chapter 54, to implement the provisions of this section. 328
406+Sec. 5. Subsection (b) of section 8-446 of the general statutes is 329
407+repealed and the following is substituted in lieu thereof (Effective from 330
408+passage): 331
409+(b) The Department of Housing shall notify the Department of 332 Substitute Bill No. 7179
500410
501-Public Act No. 19-192 17 of 36
502411
503-(ii) Foundation/Slab problems or settling? If YES, explain:
504-(iii) Basement Water Seepage/Dampness? If YES, explain Amount,
505-Frequency and Location:
506-(iv) Sump pump problems? If YES, explain:
507-(v) Do you have any knowledge of any testing or inspection done by
508-a licensed professional related to a foundation on the property? If YES,
509-disclose the testing or inspection method, the areas or locations that
510-were tested or inspected, the results of such testing or inspection and
511-attach a copy of the report concerning such testing or inspection.
512-(vi) Do you have any knowledge of any repairs related to a
513-foundation on the property? If YES, [explain:] describe such repairs,
514-disclose the areas repaired and attach a copy of the report concerning
515-such repairs.
516-(vii) Do you have any knowledge related to the presence of
517-pyrrhotite in a foundation on the property? If YES, explain:
518-[(vii)] (viii) Roof type; Age?
519-[(viii)] (ix) Roof leaks? If YES, explain:
520-[(ix)] (x) Exterior siding problems? If YES, explain:
521-[(x)] (xi) Chimney, Fireplace, Wood or Coal Stove problems? If YES,
522-explain:
523-[(xi)] (xii) Patio/deck problems? If YES, explain:
524-[(xii)] (xiii) If constructed of Wood, is the Wood Treated or
525-Untreated?
526-[(xiii)] (xiv) Driveway problems? If YES, explain: Substitute House Bill No. 7179
412+LCO {\\PRDFS1\HCOUSERS\BARRYJN\WS\2019HB-07179-
413+R01-HB.docx }
414+12 of 12
527415
528-Public Act No. 19-192 18 of 36
416+Public Health not later than thirty days after the deposit of remittances 333
417+in the Healthy Homes Fund pursuant to subdivision (2) of subsection 334
418+[(b)] (c) of section 38a-331, as amended by this act. Not later than thirty 335
419+days after the deposit of remittances pursuant to subdivision (2) of 336
420+subsection [(b)] (c) of section 38a-331, as amended by this act, the 337
421+Department of Public Health shall notify each municipal health 338
422+department in the state annually regarding funds available pursuant to 339
423+the Healthy Homes Fund established pursuant to subsection (a) of this 340
424+section. 341
425+Sec. 6. (Effective July 1, 2019) The sum of eight million dollars is 342
426+appropriated to the Department of Housing, from the General Fund, 343
427+for the fiscal year ending June 30, 2020, to fund grants awarded by the 344
428+Commissioner of Housing as part of the grant program established 345
429+pursuant to section 1 of this act. 346
430+This act shall take effect as follows and shall amend the following
431+sections:
529432
530-[(xiv)] (xv) Water drainage problems? If YES, explain:
531-[(xv)] (xvi) Interior Floor, Wall and/or Ceiling problems? If YES,
532-explain:
533-[(xvi)] (xvii) Fire and/or Smoke damage? If YES, explain:
534-[(xvii)] (xviii) Termite, Insect, Rodent or Pest Infestation problems?
535-If YES, explain:
536-[(xviii)] (xix) Rot or Water damage problems? If YES, explain:
537-[(xix)] (xx) Is house insulated? If YES, Type: Location:
538-[(xx)] (xxi) Has a test for Radon been performed? If YES, attach a
539-copy of the report.
540-[(xxi)] (xxii) Is there a Radon Control System in place? If YES,
541-explain:
542-[(xxii)] (xxiii) Has a Radon control system been in place in the
543-previous 12 months? If YES, explain:
544-(I) The Seller should attach additional pages to further explain any
545-item(s) above. Indicate here the number of additional pages attached:
546-(J) Questions contained in subparagraphs (A) to (I), inclusive, of this
547-subdivision shall contain checkboxes indicating "yes", "no", "not
548-applicable" or "unknown".
549-(3) The written residential [disclosure] condition report shall contain
550-the following immediately below the questions contained in
551-subparagraphs (A) to (I), inclusive, of subdivision (2) of this
552-subsection:
553-A certification by the seller in the following form: Substitute House Bill No. 7179
433+Section 1 July 1, 2019 New section
434+Sec. 2 July 1, 2019 38a-91vv(b) to (h)
435+Sec. 3 July 1, 2019 8-440
436+Sec. 4 from passage 38a-331
437+Sec. 5 from passage 8-446(b)
438+Sec. 6 July 1, 2019 New section
554439
555-Public Act No. 19-192 19 of 36
440+Statement of Legislative Commissioners:
441+In Section 5(b), "(b)" was bracketed and "(c)" was inserted after the
442+closing bracket to conform with the changes being made in Section 4.
556443
557-SELLER'S CERTIFICATION
558-"To the extent of the seller's knowledge as a property owner, the
559-seller acknowledges that the information contained above is true and
560-accurate for those areas of the property listed. In the event a real estate
561-broker or salesperson is utilized, the seller authorizes the brokers or
562-salespersons to provide the above information to prospective buyers,
563-selling agents or buyers' agents.
564- .... (Date) .... (Seller)
565- .... (Date) .... (Seller)"
566-
567-(4) The written residential [disclosure] condition report shall contain
568-the following in a separate section immediately below the seller's
569-certification:
570-IMPORTANT INFORMATION
571-(A) RESPONSIBILITIES OF REAL ESTATE BROKERS
572-This report in no way relieves a real estate broker of the broker's
573-obligation under the provisions of section 20-328-5a of the Regulations
574-of Connecticut State Agencies to disclose any material facts. Failure to
575-do so could result in punitive action taken against the broker, such as
576-fines, suspension or revocation of license.
577-(B) STATEMENTS NOT TO CONSTITUTE A WARRANTY
578-Any representations made by the seller on the written residential
579-[disclosure] condition report shall not constitute a warranty to the
580-buyer.
581-(C) NATURE OF [DISCLOSURE] REPORT
582-This Residential Property Condition [Disclosure] Report is not a
583-substitute for inspections, tests and other methods of determining the Substitute House Bill No. 7179
584-
585-Public Act No. 19-192 20 of 36
586-
587-physical condition of property.
588-(D) INFORMATION ON THE RESIDENCE OF CONVICTED
589-FELONS
590-Information concerning the residence address of a person convicted
591-of a crime may be available from law enforcement agencies or the
592-Department of Public Safety.
593-(E) BUILDING PERMITS AND CERTIFICATES OF OCCUPANCY
594-Prospective buyers should consult with the municipal building
595-official in the municipality in which the property is located to confirm
596-that building permits and certificates of occupancy have been issued
597-for work on the property.
598-(F) HOME INSPECTION
599-Buyers should have the property inspected by a licensed home
600-inspector.
601-(G) CONCRETE FOUNDATION
602-Prospective buyers may have a concrete foundation inspected by a
603-licensed professional engineer who is a structural engineer for
604-deterioration of the foundation due to the presence of pyrrhotite.
605-(5) The written residential [disclosure] condition report shall contain
606-the following immediately below the statements contained in
607-subparagraphs (A) to (G), inclusive, of subdivision (4) of this
608-subsection:
609-A certification by the buyer in the following form:
610-BUYER'S CERTIFICATION
611-"The buyer is urged to carefully inspect the property and, if desired, Substitute House Bill No. 7179
612-
613-Public Act No. 19-192 21 of 36
614-
615-to have the property inspected by an expert. The buyer understands
616-that there are areas of the property for which the seller has no
617-knowledge and that this [disclosure statement] report does not
618-encompass those areas. The buyer also acknowledges that the buyer
619-has read and received a signed copy of this [statement] report from the
620-seller or seller's agent.
621- .... (Date) .... [(Seller)] (Buyer)
622- .... (Date) .... [(Seller)] (Buyer)"
623-
624-(e) On or after January 1, 1996, the Commissioner of Consumer
625-Protection shall make available the written residential [disclosure
626-report] condition reports prescribed in accordance with the provisions
627-of this section and sections 20-327c to 20-327e, inclusive, as amended
628-by this act, to the Division of Real Estate, all municipal town clerks, the
629-Connecticut Association of Realtors, Inc., and any other person or
630-institution that the commissioner believes would aid in the
631-dissemination and distribution of such [form] forms. The
632-commissioner shall also cause information concerning such [form]
633-forms and the completion of such [form] forms to be disseminated in a
634-manner best calculated, in the commissioner's judgment, to reach
635-members of the public, attorneys and real estate licensees.
636-(f) Any written residential [disclosure] condition report prescribed
637-in accordance with the provisions of this section and sections 20-327c
638-to 20-327e, inclusive, as amended by this act, shall take effect for new
639-listings thirty days following posting of the notice regarding such
640-report on the Department of Consumer Protection's Internet web site.
641-(g) In any transfer of residential real property that is located in a
642-municipality that the Capitol Region Council of Governments
643-determines is affected, or potentially affected, by crumbling
644-foundations and was acquired by a political subdivision of this state or
645-was acquired by a judgment of strict foreclosure or by foreclosure by Substitute House Bill No. 7179
646-
647-Public Act No. 19-192 22 of 36
648-
649-sale or by a deed in lieu of foreclosure, the owner or political
650-subdivision shall, through a written residential condition report
651-described in subsection (h) of this section, disclose to the prospective
652-purchaser of such real property, at any time prior to the prospective
653-purchaser's execution of any binder, contract to purchase, option or
654-lease containing a purchase option, any facts that are within such
655-owner's or political subdivision's actual knowledge concerning:
656-(1) The presence of pyrrhotite in any concrete foundation on such
657-property;
658-(2) Any damage or deterioration in any concrete foundation on such
659-property, including, but not limited to, any damage or deterioration
660-caused by the presence of pyrrhotite in any foundation on such
661-property; and
662-(3) Any repairs or remediation to any concrete foundation on such
663-property.
664-(h) In any transfer of residential real property that is located in a
665-municipality that the Capitol Region Council of Governments
666-determines is affected, or potentially affected, by crumbling
667-foundations and was acquired by a political subdivision of this state or
668-was acquired by a judgment of strict foreclosure or by foreclosure by
669-sale or by a deed in lieu of foreclosure, the owner or political
670-subdivision shall satisfy the provisions of subsection (g) of this section
671-through a written residential condition report prescribed by the
672-Commissioner of Consumer Protection pursuant to subsection (d) of
673-this section, which report shall be entitled "Residential Foundation
674-Condition Report" and exclusively contain the following in the
675-following order:
676-(1) A section entitled "Instructions to Sellers"
677-You MUST answer ALL questions based on your knowledge. You Substitute House Bill No. 7179
678-
679-Public Act No. 19-192 23 of 36
680-
681-are not required to undertake investigations or inspections of the
682-foundation to verify your answers.
683-YOUR REAL ESTATE LICENSEE CANNOT COMPLETE THIS
684-FORM ON YOUR BEHALF.
685-UNK means Unknown, N/A means Not Applicable.
686-If you need additional space to complete any answer or explanation,
687-attach additional page(s) to this form. Include subject property
688-address, seller's name and the date.
689-(2) Pursuant to the Uniform Property Condition Disclosure Act, the
690-seller is obligated to answer the following questions and to disclose
691-herein any knowledge of any problem regarding the following:
692-(A) A subsection entitled "Subject Property"
693-(i) Name of seller(s)
694-(ii) Street address, municipality, zip code
695-(B) A subsection entitled "Information About the Foundation"
696-(i) Do you have any knowledge related to the presence of pyrrhotite
697-in any concrete foundation on the subject property? If YES, explain:
698-(ii) Are you aware of any damage or deterioration in any concrete
699-foundation on the subject property, including, but not limited to, any
700-damage or deterioration caused by the presence of pyrrhotite in any
701-concrete foundation on the property? If YES, explain:
702-(iii) Are you aware of any repairs or remediation to any concrete
703-foundation on the subject property? If YES, explain:
704-(3) In a separate section immediately below the questions contained
705-in subdivision (2) of this subsection, the following information in the Substitute House Bill No. 7179
706-
707-Public Act No. 19-192 24 of 36
708-
709-following form:
710-IMPORTANT INFORMATION
711-(A) RESPONSIBILITIES OF REAL ESTATE BROKERS
712-This report in no way relieves a real estate broker of the broker's
713-obligation under the provisions of section 20-328-5a of the Regulations
714-of Connecticut State Agencies to disclose any material facts. Failure to
715-do so could result in punitive action taken against the broker, such as
716-fines, suspension or revocation of license.
717-(B) STATEMENTS NOT TO CONSTITUTE A WARRANTY
718-Any representations made by the seller in this residential
719-foundation condition report shall not constitute a warranty to the
720-buyer.
721-(C) NATURE OF REPORT
722-This report is not a substitute for inspections, tests and other
723-methods of determining the physical condition of the foundation.
724-Prospective buyers may have a concrete foundation inspected by a
725-licensed professional engineer who is a structural engineer for
726-deterioration of the foundation due to the presence of pyrrhotite.
727-(4) Immediately following the information contained in subdivision
728-(3) of this subsection, a certification by the buyer in the following form:
729-BUYER'S CERTIFICATION
730-"The buyer is urged to carefully inspect the foundation and, if
731-desired, to have the foundation inspected by an expert. The buyer
732-understands that there are parts of the property, including the
733-foundation, for which the seller has no knowledge and that this report
734-does not encompass those parts. The buyer also acknowledges that the Substitute House Bill No. 7179
735-
736-Public Act No. 19-192 25 of 36
737-
738-buyer has read and reviewed a signed copy of this report from the
739-seller or the seller's agent.
740- .... (Date) .... (Buyer)
741- .... (Date) .... (Buyer)"
742-
743-(5) Immediately below the buyer's certification, a certification by the
744-seller in the following form:
745-SELLER'S CERTIFICATION
746-"To the extent of the seller's knowledge as an owner of a property
747-acquired through foreclosure or deed in lieu of foreclosure, the seller
748-acknowledges that the information contained above is true and
749-accurate. In the event a real estate broker or salesperson is utilized, the
750-seller authorizes the broker or salesperson to provide the above
751-information to prospective buyers, selling agents or buyers' agents.
752- .... (Date) .... (Seller)
753- .... (Date) .... (Seller)"
754-
755-Sec. 6. Section 20-327c of the general statutes is repealed and the
756-following is substituted in lieu thereof (Effective January 1, 2020):
757-(a) On or after January 1, 1996, every agreement to purchase
758-residential real estate, for which a written residential condition report
759-is, or written residential condition reports are, required pursuant to
760-section 20-327b, as amended by this act, shall include a requirement
761-that the seller credit the purchaser with the sum of five hundred
762-dollars at closing should the seller fail to furnish the written residential
763-condition report or reports as required by sections 20-327b to 20-327e,
764-inclusive, as amended by this act.
765-(b) (1) No seller who credits a purchaser pursuant to subsection (a)
766-of this section shall, by reason of such credit, be excused from Substitute House Bill No. 7179
767-
768-Public Act No. 19-192 26 of 36
769-
770-disclosing to the purchaser any defect in the residential real estate if
771-such defect:
772-(A) Is subject to disclosure pursuant to section 20-327b, as amended
773-by this act;
774-(B) Is within the seller's actual knowledge of such residential real
775-estate; and
776-(C) Significantly impairs (i) the value of such residential real estate,
777-(ii) the health or safety of future occupants of such residential real
778-estate, or (iii) the useful life of such residential real estate.
779-(2) A purchaser may, without limiting any other remedies available
780-to the purchaser, bring a civil action in the judicial district in which the
781-residential real estate is located to recover actual damages from a seller
782-who fails to disclose any defect described in subdivision (1) of this
783-subsection to such purchaser.
784-Sec. 7. (NEW) (Effective from passage) As used in this section and
785-sections 8 to 11, inclusive, of this act:
786-(1) "Authority" means the Connecticut Housing Finance Authority
787-created under section 8-244 of the general statutes, as amended by this
788-act;
789-(2) "Bank" means a bank or an out-of-state bank, each as defined in
790-section 36a-2 of the general statutes;
791-(3) "Captive insurance company" means the captive insurance
792-company established pursuant to section 38a-91vv of the general
793-statutes, as amended by this act;
794-(4) "Credit union" means a Connecticut credit union or a federal
795-credit union, each as defined in section 36a-2 of the general statutes; Substitute House Bill No. 7179
796-
797-Public Act No. 19-192 27 of 36
798-
799-(5) "Department" means the Department of Banking;
800-(6) "Eligible borrower" means the owner or occupant of a residential
801-building who has received a participation agreement from the captive
802-insurance company;
803-(7) "Eligible financial institution" means a bank or credit union that
804-has a physical presence in this state;
805-(8) "Participation agreement" means an agreement by the captive
806-insurance company to pay for a portion of the cost to repair or replace a
807-concrete foundation that has deteriorated due to the presence of
808-pyrrhotite; and
809-(9) "Residential building" has the same meaning as provided in
810-section 8-440 of the general statutes, as amended by this act.
811-Sec. 8. (NEW) (Effective from passage) (a) The authority shall
812-administer a supplemental collapsing foundation loan program to
813-guarantee the repayment of loans made by an eligible financial
814-institution to an eligible borrower pursuant to sections 7 to 11,
815-inclusive, of this act. Subject to the cessation of new claim approvals
816-under subsection (d) of section 10 of this act, the authority shall submit
817-all processed claims to the Comptroller, who shall pay from the
818-General Fund any and all claims submitted by the authority.
819-(b) (1) Except as provided in subsection (d) of this section, any
820-eligible financial institution may participate in the loan guarantee
821-program after providing the department and the authority with
822-advance written notice of the eligible financial institution's intention to
823-participate in the program. Such notice shall be in the form and
824-manner prescribed by the department and the authority, and shall
825-include contact information for the eligible financial institution.
826-Nothing in this section shall be construed to preclude an eligible
827-financial institution that has elected to participate in the program from Substitute House Bill No. 7179
828-
829-Public Act No. 19-192 28 of 36
830-
831-issuing loans to eligible borrowers outside of the loan guarantee
832-program.
833-(2) An eligible financial institution may suspend its participation in,
834-or withdraw from, the loan guarantee program five business days after
835-providing advance written notice to the department and the authority
836-specifying the date on which such suspension or withdrawal becomes
837-effective. Such withdrawal or suspension shall not affect the eligible
838-financial institution's ability to submit a guarantee claim on any loan
839-for which the eligible financial institution provided notice to the
840-authority pursuant to subsection (d) of this section prior to the
841-effective date of the withdrawal or suspension.
842-(3) Not later than September 1, 2019, the department and the
843-authority shall each publish on their Internet web sites a summary of
844-the program and a list of the eligible financial institutions that have
845-elected to participate in the program. The list shall be updated from
846-time to time and shall include the contact information of each
847-participating eligible financial institution. The department shall also
848-provide information concerning the loan guarantee program to
849-mortgage servicers licensed pursuant to section 36a-718 of the general
850-statutes.
851-(c) (1) The authority may develop, in consultation with
852-representatives from the banking industry, one or more standard
853-promissory note and mortgage deed forms that may be used by
854-eligible financial institutions making loans under the program
855-pursuant to section 9 of this act.
856-(2) Not later than September 1, 2019, the authority shall develop, in
857-consultation with representatives from the banking industry, (A)
858-reasonable standards an eligible financial institution may rely upon to
859-demonstrate good faith collection efforts described in subsection (a) of
860-section 10 of this act, and (B) a readily accessible communication portal Substitute House Bill No. 7179
861-
862-Public Act No. 19-192 29 of 36
863-
864-by which participating eligible financial institutions may verify in real
865-time the total dollar amount of loans that have been reported to the
866-authority pursuant to subsection (d) of this section and the total dollar
867-amount of claims submitted to the Comptroller pursuant to subsection
868-(a) of section 10 of this act. The forms and standards developed
869-pursuant to this section shall, to the maximum extent feasible, be
870-closely aligned with existing forms, policies and procedures used by
871-eligible financial institutions participating in the program, but shall not
872-require post-delinquency collection efforts extending beyond ninety
873-days.
874-(d) Each eligible financial institution that makes a loan pursuant to
875-section 9 of this act, shall notify the authority in writing not later than
876-one business day after making the loan, specifying the amount of the
877-loan and any other information about the borrower and the loan the
878-authority may request. When the total amount of loans reported to the
879-authority reaches twenty million dollars, the authority shall
880-immediately close participation in the program under subsection (a) of
881-this section and notify each eligible financial institution participating
882-in the program. A participating eligible financial institution may
883-condition the availability of any loan commitment on the availability of
884-the loan guarantee program.
885-Sec. 9. (NEW) (Effective from passage) Each eligible financial
886-institution that is participating in the program may make loans to an
887-eligible borrower, provided:
888-(1) The eligible borrower demonstrates to the satisfaction of the
889-financial institution that the eligible borrower has a participation
890-agreement with the captive insurance company.
891-(2) The loan shall (A) be secured by a mortgage deed on the eligible
892-borrower's residential building, (B) be made in accordance with the
893-eligible financial institution's underwriting policy and standards, (C) Substitute House Bill No. 7179
894-
895-Public Act No. 19-192 30 of 36
896-
897-be in an amount not to exceed seventy-five thousand dollars, and (D)
898-bear an interest rate that does not exceed the applicable rate of the
899-Federal Home Loan Bank of Boston for Amortizing Advances through
900-the New England Fund program. For the purposes of this subdivision,
901-"applicable rate" means the New England Fund rate that (i) is
902-published on the Internet web site of the Federal Home Loan Bank of
903-Boston as of the date the interest rate is locked-in by the eligible
904-borrower and financial institution, and (ii) has an advance term and
905-amortization schedule that most closely corresponds to the term and
906-amortization schedule of the loan being made by the participating
907-eligible financial institution.
908-(3) The eligible financial institution may recover up to eight
909-hundred dollars from the eligible borrower for expenses paid by the
910-eligible financial institution to third parties for services related to
911-processing the application and closing the loan, including obtaining a
912-credit report, flood certification, title search, appraisal or other
913-valuation, and any recording fees. Such expenses may be financed as
914-part of the loan subject to the seventy-five-thousand-dollar limit
915-described in subparagraph (C) of subdivision (2) of this subsection or
916-paid separately by the eligible borrower.
917-(4) The loan agreement shall require the eligible borrower to repay
918-the loan in full not later than twenty years after the date the loan is
919-issued.
920-(5) The loan proceeds shall be used by the borrower only for eligible
921-repair expenses. For the purposes of this subdivision, "eligible repair
922-expenses" means repair or replacement expenses that are (A) necessary
923-to complete the repair or replacement of the foundation, or (B)
924-otherwise necessary to restore the functionality and appearance of the
925-property to the extent that the functionality and appearance of the
926-property were compromised by the deterioration of the foundation or
927-the demolition and construction process, including, but not limited to, Substitute House Bill No. 7179
928-
929-Public Act No. 19-192 31 of 36
930-
931-the repair or replacement of wall framing, drywall, paint and other
932-wall finishes, porches or decks, gutters, landscaping, outbuildings or
933-sheds and swimming pools. "Eligible repair expenses" do not include
934-any costs associated with significant upgrades to the property that are
935-not otherwise included in subparagraphs (A) and (B) of this
936-subdivision. A participating eligible financial institution may decline
937-an application for a loan under the program that includes a request to
938-fund expenses associated with upgrades to the property that may not
939-qualify as eligible repair expenses, but the failure to do so shall not
940-affect the ability of the eligible financial institution to include the loan
941-in the loan guarantee program for the full amount of principal
942-extended to the eligible borrower.
943-Sec. 10. (NEW) (Effective from passage) (a) An eligible financial
944-institution that has made a good faith effort to collect the outstanding
945-principal from a loan issued pursuant to section 9 of this act may make
946-a claim to the authority for recovery of an amount equal to the
947-outstanding principal for such loan. Except as provided in subsection
948-(d) of this section, if the eligible financial institution demonstrates to
949-the satisfaction of the authority that the eligible financial institution
950-has made a good faith effort to collect the outstanding principal from
951-the eligible borrower in accordance with the financial institution's loan
952-servicing and collection policies, the authority shall process and
953-submit the claim to the Comptroller for payment. Upon payment of a
954-claim by the Comptroller, and as a condition of such payment, (1) the
955-loan shall be assigned to the state, and (2) the authority, as agent for
956-the state, shall have the right to continue collection efforts on the loan.
957-Any amount necessary for payment by the Comptroller to honor loan
958-guarantees under this section shall be deemed appropriated from the
959-General Fund, and any funds collected by the authority in accordance
960-with this subsection shall be deposited to the General Fund.
961-(b) The authority shall maintain records in the regular course of Substitute House Bill No. 7179
962-
963-Public Act No. 19-192 32 of 36
964-
965-administration of the loan guarantee program, including a record of
966-loans issued and of payments made to honor loan guarantees issued
967-under this section.
968-(c) The authority may terminate any loan guarantee if the financial
969-institution misrepresents any information pertaining to the guarantee
970-or fails to comply with any requirements of this section in connection
971-with the guarantee of the underlying loan.
972-(d) The total amount of claims processed by the authority and paid
973-by the Comptroller to honor loan guarantees under this section shall
974-not exceed two million dollars. When the total amount of claims
975-processed by the authority and paid by the Comptroller reaches two
976-million dollars, the authority shall immediately cease to process claims
977-and shall notify the Comptroller and each eligible financial institution
978-participating in the program that the authority has ceased honoring
979-loan guarantees.
980-Sec. 11. (NEW) (Effective from passage) The Comptroller, the authority
981-and the department may enter into a memorandum of understanding
982-to carry out the provisions of sections 7 to 12, inclusive, of this act.
983-Sec. 12. Subsection (a) of section 8-244 of the general statutes is
984-repealed and the following is substituted in lieu thereof (Effective from
985-passage):
986-(a) There is created a body politic and corporate to be known as the
987-"Connecticut Housing Finance Authority". Said authority is constituted
988-a public instrumentality and political subdivision of this state and the
989-exercise by the authority of the powers conferred by this chapter and
990-sections 7 to 11, inclusive, of this act shall be deemed and held to be the
991-performance of an essential public and governmental function. The
992-Connecticut Housing Finance Authority shall not be construed to be a
993-department, institution or agency of the state. The board of directors of Substitute House Bill No. 7179
994-
995-Public Act No. 19-192 33 of 36
996-
997-the authority shall consist of sixteen members as follows: (1) The
998-Commissioner of Economic and Community Development, the
999-Commissioner of Housing, the Secretary of the Office of Policy and
1000-Management, the Banking Commissioner and the State Treasurer, ex
1001-officio, or their designees, with the right to vote, (2) seven members to
1002-be appointed by the Governor, and (3) four members appointed as
1003-follows: One by the president pro tempore of the Senate, one by the
1004-speaker of the House of Representatives, one by the minority leader of
1005-the Senate and one by the minority leader of the House of
1006-Representatives. The member initially appointed by the speaker of the
1007-House of Representatives shall serve a term of five years; the member
1008-initially appointed by the president pro tempore of the Senate shall
1009-serve a term of four years. The members initially appointed by the
1010-Senate minority leader shall serve a term of three years. The member
1011-initially appointed by the minority leader of the House of
1012-Representatives shall serve a term of two years. Thereafter, each
1013-member appointed by a member of the General Assembly shall serve a
1014-term of five years. The members appointed by the Governor and the
1015-members of the General Assembly shall be appointed in accordance
1016-with section 4-9b and among them be experienced in all aspects of
1017-housing, including housing design, development, finance,
1018-management and state and municipal finance, and at least one of
1019-whom shall be selected from among the officers or employees of the
1020-state. At least one shall have experience in the provision of housing to
1021-very low, low and moderate income families. On or before July first,
1022-annually, the Governor shall appoint a member for a term of five years
1023-from said July first to succeed the member whose term expires and
1024-until such member's successor has been appointed, except that in 1974
1025-and 1995 and quinquennially thereafter, the Governor shall appoint
1026-two members. The chairperson of the board shall be appointed by the
1027-Governor. The board shall annually elect one of its appointed members
1028-as vice-chairperson of the board. Members shall receive no
1029-compensation for the performance of their duties hereunder but shall Substitute House Bill No. 7179
1030-
1031-Public Act No. 19-192 34 of 36
1032-
1033-be reimbursed for necessary expenses incurred in the performance
1034-thereof. The Governor or appointing member of the General Assembly,
1035-as the case may be, shall fill any vacancy for the unexpired term. A
1036-member of the board shall be eligible for reappointment. Any member
1037-of the board may be removed by the Governor or appointing member
1038-of the General Assembly, as the case may be, for misfeasance,
1039-malfeasance or wilful neglect of duty. Each member of the board
1040-before entering upon such member's duties shall take and subscribe
1041-the oath of affirmation required by article XI, section 1, of the State
1042-Constitution. A record of each such oath shall be filed in the office of
1043-the Secretary of the State. Each ex-officio member may designate such
1044-member's deputy or any member of such member's staff to represent
1045-such member at meetings of the board with full power to act and vote
1046-on such member's behalf.
1047-Sec. 13. (NEW) (Effective July 1, 2019) (a) There is established a
1048-program to encourage the development of technologies and techniques
1049-regarding the prevention, identification and repair of properties that
1050-have, or may suffer from, crumbling foundations due to the presence
1051-of pyrrhotite.
1052-(b) Connecticut Innovations, Incorporated, shall administer the
1053-program established under subsection (a) of this section within
1054-existing resources and, in conjunction with a volunteer panel of subject
1055-matter experts convened by Connecticut Innovations, Incorporated,
1056-develop criteria for the program established under subsection (a) of
1057-this section.
1058-(c) Connecticut Innovations, Incorporated, may administer the
1059-program established under subsection (a) of this section in
1060-coordination with the coordinating agency from another state or other
1061-states.
1062-Sec. 14. (NEW) (Effective July 1, 2019) (a) The Chief Data Officer Substitute House Bill No. 7179
1063-
1064-Public Act No. 19-192 35 of 36
1065-
1066-shall, in consultation with the Department of Housing, the State
1067-Geologist, the captive insurance company established pursuant to
1068-section 38a-91vv of the general statutes, as amended by this act, and
1069-the volunteer panel convened pursuant to subsection (b) of section 13
1070-of this act, develop and implement a plan to collect the data necessary
1071-to conduct research regarding crumbling foundations.
1072-(b) Any data collected under the plan developed and implemented
1073-pursuant to subsection (a) of this section shall be confidential and
1074-exempt from the Freedom of Information Act, as defined in section 1-
1075-200 of the general statutes, except that the Chief Data Officer may
1076-make such data available for research purposes subject to data sharing
1077-agreements that maintain the confidentiality of personally identifying
1078-information and the specific location of any property.
1079-Sec. 15. (Effective from passage) (a) There is established a working
1080-group to develop a model quality control plan for quarries and to
1081-study the workforce of contractors engaged in the repair and
1082-replacement of concrete foundations that have deteriorated due to the
1083-presence of pyrrhotite.
1084-(b) The working group shall consist of the following members:
1085-(1) Two appointed by the speaker of the House of Representatives,
1086-one of whom shall have expertise in residential home building and one
1087-of whom shall have expertise in the construction industry;
1088-(2) Two appointed by the president pro tempore of the Senate, one
1089-of whom shall be a member of the Capitol Region Council of
1090-Governments;
1091-(3) One appointed by the majority leader of the House of
1092-Representatives;
1093-(4) One appointed by the majority leader of the Senate; Substitute House Bill No. 7179
1094-
1095-Public Act No. 19-192 36 of 36
1096-
1097-(5) One appointed by the minority leader of the House of
1098-Representatives; and
1099-(6) One appointed by the minority leader of the Senate.
1100-(c) Any member of the working group may be a member of the
1101-General Assembly.
1102-(d) All appointments to the working group shall be made not later
1103-than thirty days after the effective date of this section. Any vacancy
1104-shall be filled by the appointing authority.
1105-(e) The speaker of the House of Representatives and the president
1106-pro tempore of the Senate shall select the chairpersons of the working
1107-group from among the members of the working group. Such
1108-chairpersons shall schedule the first meeting of the working group,
1109-which shall be held not later than sixty days after the effective date of
1110-this section.
1111-(f) The administrative staff of the joint standing committee of the
1112-General Assembly having cognizance of matters relating to consumer
1113-protection shall serve as administrative staff of the working group.
1114-(g) Not later than February 1, 2020, the working group shall submit
1115-a report on its findings and recommendations to the joint standing
1116-committee of the General Assembly having cognizance of matters
1117-relating to consumer protection, in accordance with the provisions of
1118-section 11-4a of the general statutes. The working group shall
1119-terminate on the date that it submits such report or February 1, 2020,
1120-whichever is later.
444+INS Joint Favorable Subst.
1121445