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| 2 | 2 | | |
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| 3 | 3 | | LCO No. 4712 1 of 13 |
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| 4 | 4 | | |
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| 5 | 5 | | General Assembly Raised Bill No. 7268 |
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| 6 | 6 | | January Session, 2019 |
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| 7 | 7 | | LCO No. 4712 |
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| 8 | 8 | | |
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| 9 | 9 | | |
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| 10 | 10 | | Referred to Committee on INSURANCE AND REAL ESTATE |
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| 11 | 11 | | |
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| 12 | 12 | | |
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| 13 | 13 | | Introduced by: |
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| 14 | 14 | | (INS) |
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| 15 | 15 | | |
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| 16 | 16 | | |
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| 17 | 17 | | |
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| 18 | 18 | | |
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| 19 | 19 | | AN ACT CONCERNING HO ME IMPROVEMENT CONTRACT ORS AND |
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| 20 | 20 | | SALESPERSONS. |
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| 21 | 21 | | Be it enacted by the Senate and House of Representatives in General |
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| 22 | 22 | | Assembly convened: |
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| 23 | 23 | | |
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| 24 | 24 | | Section 1. Section 20-419 of the general statutes is repealed and the 1 |
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| 25 | 25 | | following is substituted in lieu thereof (Effective October 1, 2019): 2 |
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| 26 | 26 | | As used in this chapter and sections 2 and 3 of this act, unless the 3 |
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| 27 | 27 | | context otherwise requires: 4 |
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| 28 | 28 | | (1) "Business day" has the same meaning as provided in section 42-5 |
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| 29 | 29 | | 134a. 6 |
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| 30 | 30 | | [(1)] (2) "Certificate" means a certificate of registration issued under 7 |
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| 31 | 31 | | section 20-422. 8 |
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| 32 | 32 | | [(2)] (3) "Commissioner" means the Commissioner of Consumer 9 |
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| 33 | 33 | | Protection or any person designated by the commissioner to 10 |
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| 34 | 34 | | administer and enforce this chapter. 11 |
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| 35 | 35 | | [(3)] (4) "Contractor" means any person who owns and operates a 12 Raised Bill No. 7268 |
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| 36 | 36 | | |
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| 37 | 37 | | |
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| 38 | 38 | | |
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| 39 | 39 | | LCO No. 4712 2 of 13 |
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| 40 | 40 | | |
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| 41 | 41 | | home improvement business or who undertakes, offers to undertake 13 |
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| 42 | 42 | | or agrees to perform any home improvement. "Contractor" does not 14 |
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| 43 | 43 | | include a person for whom the total price of all of his home 15 |
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| 44 | 44 | | improvement contracts with all of his customers does not exceed one 16 |
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| 45 | 45 | | thousand dollars during any period of twelve consecutive months. 17 |
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| 46 | 46 | | [(4)] (5) "Home improvement" includes, but is not limited to, the 18 |
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| 47 | 47 | | repair, replacement, remodeling, alteration, conversion, 19 |
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| 48 | 48 | | modernization, improvement, rehabilitation or sandblasting of, or 20 |
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| 49 | 49 | | addition to any land or building or that portion thereof which is used 21 |
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| 50 | 50 | | or designed to be used as a private residence, dwelling place or 22 |
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| 51 | 51 | | residential rental property, or the construction, replacement, 23 |
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| 52 | 52 | | installation or improvement of driveways, swimming pools, porches, 24 |
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| 53 | 53 | | garages, roofs, siding, insulation, sunrooms, flooring, patios, 25 |
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| 54 | 54 | | landscaping, fences, doors and windows, waterproofing, water, fire or 26 |
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| 55 | 55 | | storm restoration or mold remediation in connection with such land or 27 |
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| 56 | 56 | | building or that portion thereof which is used or designed to be used 28 |
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| 57 | 57 | | as a private residence, dwelling place or residential rental property or 29 |
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| 58 | 58 | | the removal or replacement of a residential underground heating oil 30 |
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| 59 | 59 | | storage tank system, in which the total price for all work agreed upon 31 |
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| 60 | 60 | | between the contractor and owner or proposed or offered by the 32 |
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| 61 | 61 | | contractor exceeds two hundred dollars. "Home improvement" does 33 |
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| 62 | 62 | | not include: (A) The construction of a new home; (B) the sale of goods 34 |
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| 63 | 63 | | by a seller who neither arranges to perform nor performs, directly or 35 |
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| 64 | 64 | | indirectly, any work or labor in connection with the installation or 36 |
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| 65 | 65 | | application of the goods or materials; (C) the sale of goods or services 37 |
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| 66 | 66 | | furnished for commercial or business use or for resale, provided 38 |
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| 67 | 67 | | commercial or business use does not include use as residential rental 39 |
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| 68 | 68 | | property; (D) the sale of appliances, such as stoves, refrigerators, 40 |
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| 69 | 69 | | freezers, room air conditioners and others which are designed for and 41 |
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| 70 | 70 | | are easily removable from the premises without material alteration 42 |
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| 71 | 71 | | thereof; and (E) any work performed without compensation by the 43 |
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| 72 | 72 | | owner on his own private residence or residential rental property. 44 |
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| 73 | 73 | | [(5)] (6) "Home improvement contract" means an agreement 45 |
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| 74 | 74 | | between a contractor and an owner for the performance of a home 46 Raised Bill No. 7268 |
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| 75 | 75 | | |
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| 76 | 76 | | |
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| 77 | 77 | | |
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| 78 | 78 | | LCO No. 4712 3 of 13 |
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| 79 | 79 | | |
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| 80 | 80 | | improvement. 47 |
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| 81 | 81 | | [(6)] (7) "Owner" means a person who owns or resides in a private 48 |
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| 82 | 82 | | residence and includes any agent thereof, including, but not limited to, 49 |
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| 83 | 83 | | a condominium association. An owner of a private residence shall not 50 |
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| 84 | 84 | | be required to reside in such residence to be deemed an owner under 51 |
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| 85 | 85 | | this subdivision. 52 |
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| 86 | 86 | | [(7)] (8) "Person" means an individual, partnership, limited liability 53 |
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| 87 | 87 | | company or corporation. 54 |
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| 88 | 88 | | [(8)] (9) "Private residence" means a single family dwelling, a 55 |
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| 89 | 89 | | multifamily dwelling consisting of not more than six units, or a unit, 56 |
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| 90 | 90 | | common element or limited common element in a condominium, as 57 |
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| 91 | 91 | | defined in section 47-68a, or in a common interest community, as 58 |
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| 92 | 92 | | defined in section 47-202, or any number of condominium units for 59 |
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| 93 | 93 | | which a condominium association acts as an agent for such unit 60 |
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| 94 | 94 | | owners. 61 |
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| 95 | 95 | | [(9)] (10) "Salesman" means any individual who (A) negotiates or 62 |
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| 96 | 96 | | offers to negotiate a home improvement contract with an owner or (B) 63 |
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| 97 | 97 | | solicits or otherwise endeavors to procure by any means whatsoever, 64 |
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| 98 | 98 | | directly or indirectly, a home improvement contract from an owner on 65 |
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| 99 | 99 | | behalf of a contractor. 66 |
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| 100 | 100 | | [(10)] (11) "Residential rental property" means a single family 67 |
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| 101 | 101 | | dwelling, a multifamily dwelling consisting of not more than six units, 68 |
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| 102 | 102 | | or a unit, common element or limited common element in a 69 |
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| 103 | 103 | | condominium, as defined in section 47-68a, or in a common interest 70 |
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| 104 | 104 | | community, as defined in section 47-202, which is not owner-occupied. 71 |
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| 105 | 105 | | [(11)] (12) "Residential underground heating oil storage tank 72 |
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| 106 | 106 | | system" means an underground storage tank system used with or 73 |
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| 107 | 107 | | without ancillary components in connection with real property 74 |
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| 108 | 108 | | composed of four or less residential units. 75 |
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| 109 | 109 | | [(12)] (13) "Underground storage tank system" means an 76 Raised Bill No. 7268 |
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| 110 | 110 | | |
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| 111 | 111 | | |
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| 112 | 112 | | |
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| 113 | 113 | | LCO No. 4712 4 of 13 |
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| 114 | 114 | | |
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| 115 | 115 | | underground tank or combination of tanks, with any underground 77 |
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| 116 | 116 | | pipes or ancillary equipment or containment systems connected to 78 |
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| 117 | 117 | | such tank or tanks, used to contain an accumulation of petroleum, 79 |
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| 118 | 118 | | which volume is ten per cent or more beneath the surface of the 80 |
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| 119 | 119 | | ground. 81 |
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| 120 | 120 | | Sec. 2. (NEW) (Effective October 1, 2019) Notwithstanding any 82 |
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| 121 | 121 | | provision of the general statutes, no contractor shall: 83 |
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| 122 | 122 | | (1) Require, as a precondition to entering into or performing home 84 |
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| 123 | 123 | | improvements under a home improvement contract, an owner to 85 |
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| 124 | 124 | | deposit with the contractor more than one-half of the total cash price of 86 |
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| 125 | 125 | | all work to be performed pursuant to a home improvement contract; 87 |
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| 126 | 126 | | (2) Advertise, offer or promise to provide, directly or indirectly, any 88 |
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| 127 | 127 | | allowance, compensation, discount, payment or rebate to an owner for 89 |
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| 128 | 128 | | any portion of the owner's insurance deductible as an inducement for 90 |
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| 129 | 129 | | such owner to enter into a home improvement contract with such 91 |
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| 130 | 130 | | contractor; or 92 |
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| 131 | 131 | | (3) Induce the sale of any goods or services by advertising, offering 93 |
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| 132 | 132 | | or promising to provide, directly or indirectly, to an owner any 94 |
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| 133 | 133 | | allowance, bonus, compensation, coupon, credit, discount, fee, gift, 95 |
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| 134 | 134 | | payment, prize, referral fee, trade-in or trade-in payment. 96 |
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| 135 | 135 | | Sec. 3. (NEW) (Effective October 1, 2019) Each contractor shall notify 97 |
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| 136 | 136 | | the commissioner of any change in such contractor's business or trade 98 |
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| 137 | 137 | | name, or primary residence or business address, not later than thirty 99 |
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| 138 | 138 | | days after the date of such change. 100 |
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| 139 | 139 | | Sec. 4. Subsection (a) of section 20-420 of the general statutes is 101 |
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| 140 | 140 | | repealed and the following is substituted in lieu thereof (Effective 102 |
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| 141 | 141 | | October 1, 2019): 103 |
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| 142 | 142 | | (a) (1) No person shall hold himself or herself out to be a contractor 104 |
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| 143 | 143 | | or salesperson without first (A) obtaining a certificate of registration 105 |
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| 144 | 144 | | from the commissioner as provided in this chapter, except that an 106 Raised Bill No. 7268 |
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| 145 | 145 | | |
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| 146 | 146 | | |
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| 147 | 147 | | |
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| 148 | 148 | | LCO No. 4712 5 of 13 |
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| 149 | 149 | | |
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| 150 | 150 | | individual or partner, or officer or director of a corporation registered 107 |
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| 151 | 151 | | as a contractor shall not be required to obtain a salesperson's 108 |
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| 152 | 152 | | certificate, and (B) presenting evidence of (i) bodily injury, property 109 |
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| 153 | 153 | | damage liability, public liability and workers' compensation insurance 110 |
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| 154 | 154 | | coverage in amounts prescribed by the commissioner in consultation 111 |
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| 155 | 155 | | with the Insurance Commissioner, except as provided in subdivision 112 |
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| 156 | 156 | | (3) of this subsection, and (ii) any insurance coverage required by 113 |
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| 157 | 157 | | federal law. 114 |
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| 158 | 158 | | (2) No certificate shall be given to any person who holds himself or 115 |
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| 159 | 159 | | herself out to be a contractor that performs radon mitigation unless 116 |
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| 160 | 160 | | such contractor provides evidence, satisfactory to the commissioner, 117 |
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| 161 | 161 | | that the contractor is certified as a radon mitigator by the National 118 |
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| 162 | 162 | | Radon Safety Board or the National Environmental Health 119 |
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| 163 | 163 | | Association. 120 |
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| 164 | 164 | | (3) No certificate shall be given to any person who holds himself or 121 |
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| 165 | 165 | | herself out to be a contractor that performs removal or replacement of 122 |
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| 166 | 166 | | any residential underground heating oil storage tank system unless 123 |
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| 167 | 167 | | such contractor provides evidence, satisfactory to the commissioner, 124 |
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| 168 | 168 | | that the contractor [(1)] (A) has completed a hazardous material 125 |
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| 169 | 169 | | training program approved by the Department of Energy and 126 |
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| 170 | 170 | | Environmental Protection, and [(2)] (B) has presented evidence of 127 |
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| 171 | 171 | | liability insurance coverage of one million dollars. 128 |
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| 172 | 172 | | Sec. 5. Subsection (a) of section 20-421 of the general statutes is 129 |
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| 173 | 173 | | repealed and the following is substituted in lieu thereof (Effective 130 |
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| 174 | 174 | | October 1, 2019): 131 |
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| 175 | 175 | | (a) Any person seeking a certificate of registration shall apply to the 132 |
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| 176 | 176 | | commissioner in writing, on a form provided by the commissioner. 133 |
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| 177 | 177 | | The application shall include: [the] 134 |
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| 178 | 178 | | (1) The applicant's name [, residence address, business address, 135 |
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| 179 | 179 | | business telephone number] and trade name, if the applicant is a 136 |
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| 180 | 180 | | natural person, or business name, if the applicant is not a natural 137 |
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| 181 | 181 | | person; 138 Raised Bill No. 7268 |
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| 182 | 182 | | |
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| 183 | 183 | | |
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| 184 | 184 | | |
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| 185 | 185 | | LCO No. 4712 6 of 13 |
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| 186 | 186 | | |
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| 187 | 187 | | (2) The applicant's principal residence address, if the applicant is a 139 |
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| 188 | 188 | | natural person, or principal business address, if the applicant is not a 140 |
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| 189 | 189 | | natural person; 141 |
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| 190 | 190 | | (3) The applicant's business telephone number, electronic mail 142 |
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| 191 | 191 | | address and Internet web site address; 143 |
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| 192 | 192 | | (4) The applicant's Social Security number, if the applicant is a 144 |
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| 193 | 193 | | natural person, or federal employer identification number, if the 145 |
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| 194 | 194 | | applicant is not a natural person; 146 |
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| 195 | 195 | | (5) For each affiliate, partner, subsidiary or trustee of the applicant, 147 |
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| 196 | 196 | | the name, trade name and principal residence address, or business 148 |
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| 197 | 197 | | name and principal business address, of such affiliate, partner, 149 |
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| 198 | 198 | | subsidiary or trustee; 150 |
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| 199 | 199 | | (6) If the applicant is not a natural person, the name and principal 151 |
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| 200 | 200 | | residence address of each director, officer or principal shareholder of 152 |
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| 201 | 201 | | such applicant; 153 |
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| 202 | 202 | | (7) A statement, signed and sworn to by the applicant, disclosing 154 |
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| 203 | 203 | | whether (A) the applicant previously held a certificate of registration 155 |
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| 204 | 204 | | and, if the applicant previously held such a certificate, (i) under what 156 |
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| 205 | 205 | | name or names such applicant held such certificate, and (ii) whether 157 |
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| 206 | 206 | | such certificate was suspended or revoked, and (B) any judgment or 158 |
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| 207 | 207 | | arbitration award has been entered against the applicant; 159 |
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| 208 | 208 | | (8) Proof that the applicant maintains the insurance coverage 160 |
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| 209 | 209 | | required under subsection (a) of section 20-420, as amended by this act; 161 |
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| 210 | 210 | | and [such] 162 |
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| 211 | 211 | | (9) Such other information as the commissioner may require. 163 |
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| 212 | 212 | | Sec. 6. Subsection (a) of section 20-426 of the general statutes is 164 |
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| 213 | 213 | | repealed and the following is substituted in lieu thereof (Effective 165 |
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| 214 | 214 | | October 1, 2019): 166 |
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| 215 | 215 | | (a) (1) The commissioner may revoke, suspend or refuse to issue or 167 Raised Bill No. 7268 |
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| 216 | 216 | | |
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| 217 | 217 | | |
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| 218 | 218 | | |
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| 219 | 219 | | LCO No. 4712 7 of 13 |
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| 220 | 220 | | |
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| 221 | 221 | | renew any certificate of registration as a home improvement contractor 168 |
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| 222 | 222 | | or salesperson or place a registrant on probation or issue a letter of 169 |
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| 223 | 223 | | reprimand for: 170 |
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| 224 | 224 | | [(1)] (A) Conduct of a character likely to mislead, deceive or defraud 171 |
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| 225 | 225 | | the public or the commissioner; [(2) engaging] 172 |
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| 226 | 226 | | (B) Engaging in any untruthful or misleading advertising; [(3) 173 |
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| 227 | 227 | | failing] 174 |
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| 228 | 228 | | (C) Failing to reimburse the guaranty fund established pursuant to 175 |
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| 229 | 229 | | section 20-432 for any moneys paid to an owner pursuant to subsection 176 |
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| 230 | 230 | | (o) of section 20-432; [(4) unfair] 177 |
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| 231 | 231 | | (D) Unfair or deceptive business practices; [or (5) violation] 178 |
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| 232 | 232 | | (E) Violation of any of the provisions of the general statutes relating 179 |
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| 233 | 233 | | to home improvements or any regulation adopted pursuant to any of 180 |
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| 234 | 234 | | such provisions; [.] 181 |
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| 235 | 235 | | (F) Gross malpractice or incompetence, as determined by the 182 |
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| 236 | 236 | | commissioner; 183 |
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| 237 | 237 | | (G) Failing to maintain insurance coverage required under 184 |
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| 238 | 238 | | subsection (a) of section 20-420, as amended by this act; or 185 |
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| 239 | 239 | | (H) Failing to pay any fees or taxes due and owing to this state. 186 |
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| 240 | 240 | | (2) The commissioner may refuse to issue or renew any certificate of 187 |
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| 241 | 241 | | registration as a home improvement contractor or salesperson of any 188 |
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| 242 | 242 | | person subject to the registration requirements of chapter 969. 189 |
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| 243 | 243 | | Sec. 7. Section 20-429 of the general statutes is repealed and the 190 |
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| 244 | 244 | | following is substituted in lieu thereof (Effective October 1, 2019, and 191 |
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| 245 | 245 | | applicable to home improvement contracts entered into, amended or renewed 192 |
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| 246 | 246 | | on or after said date): 193 |
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| 247 | 247 | | (a) (1) (A) No home improvement contract shall be valid or 194 |
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| 248 | 248 | | enforceable against an owner unless it: 195 Raised Bill No. 7268 |
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| 249 | 249 | | |
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| 250 | 250 | | |
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| 251 | 251 | | |
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| 252 | 252 | | LCO No. 4712 8 of 13 |
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| 253 | 253 | | |
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| 254 | 254 | | (i) Is in writing; [,] 196 |
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| 255 | 255 | | (ii) [is] Is signed by the owner and the contractor; [,] 197 |
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| 256 | 256 | | (iii) [contains] Contains the entire agreement between the owner 198 |
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| 257 | 257 | | and the contractor; [, (iv) contains] 199 |
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| 258 | 258 | | (iv) Contains an itemized list and description of all home 200 |
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| 259 | 259 | | improvements to be performed pursuant to the contract; 201 |
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| 260 | 260 | | (v) Contains the cash price of each home improvement to be 202 |
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| 261 | 261 | | performed pursuant to the contract; 203 |
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| 262 | 262 | | (vi) Contains a reasonable estimate by the contractor of the total 204 |
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| 263 | 263 | | cash price of all home improvements to be performed pursuant to the 205 |
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| 264 | 264 | | contract; 206 |
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| 265 | 265 | | (vii) Contains the date of the transaction; [, (v) contains the name 207 |
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| 266 | 266 | | and address of the contractor and the contractor's registration number, 208 |
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| 267 | 267 | | (vi) contains] 209 |
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| 268 | 268 | | (viii) Contains the contractor's full legal name, business and trade 210 |
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| 269 | 269 | | names, principal residence or business address, business telephone 211 |
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| 270 | 270 | | number, business electronic mail address and registration number; 212 |
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| 271 | 271 | | (ix) Contains the information required by subparagraph (A)(viii) of 213 |
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| 272 | 272 | | this subdivision for each person who will perform any home 214 |
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| 273 | 273 | | improvements described in the contract in such person's capacity as a 215 |
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| 274 | 274 | | day laborer, independent contractor or subcontractor; 216 |
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| 275 | 275 | | (x) Contains a notice of the owner's cancellation rights in accordance 217 |
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| 276 | 276 | | with the provisions of chapter 740; [, (vii) contains] 218 |
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| 277 | 277 | | (xi) Contains a notice of the owner's cancellation rights in 219 |
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| 278 | 278 | | accordance with subparagraph (B) of this subdivision; 220 |
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| 279 | 279 | | (xii) Contains not fewer than two cancellation forms in accordance 221 |
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| 280 | 280 | | with subparagraph (B) of this subdivision; 222 Raised Bill No. 7268 |
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| 281 | 281 | | |
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| 282 | 282 | | |
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| 283 | 283 | | |
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| 284 | 284 | | LCO No. 4712 9 of 13 |
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| 285 | 285 | | |
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| 286 | 286 | | (xiii) Contains a starting date and completion date; [, (viii) is] 223 |
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| 287 | 287 | | (xiv) Is entered into by a registered salesman or registered 224 |
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| 288 | 288 | | contractor; [, and (ix) includes] 225 |
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| 289 | 289 | | (xv) Includes a provision disclosing each corporation, limited 226 |
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| 290 | 290 | | liability company, partnership, sole proprietorship or other legal 227 |
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| 291 | 291 | | entity, which is or has been a home improvement contractor pursuant 228 |
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| 292 | 292 | | to the provisions of this chapter or a new home construction contractor 229 |
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| 293 | 293 | | pursuant to the provisions of chapter 399a, in which the owner or 230 |
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| 294 | 294 | | owners of the home improvement contractor are or have been a 231 |
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| 295 | 295 | | shareholder, member, partner, or owner during the previous five 232 |
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| 296 | 296 | | years; 233 |
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| 297 | 297 | | (xvi) Includes a provision disclosing that the contractor maintains 234 |
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| 298 | 298 | | the insurance coverage required under subsection (a) of section 20-420, 235 |
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| 299 | 299 | | as amended by this act, the name of each insurer that issued such 236 |
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| 300 | 300 | | coverage to the contractor and the coverage limits under each policy 237 |
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| 301 | 301 | | providing such coverage; and 238 |
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| 302 | 302 | | (xvii) Includes a provision allowing the owner, at the owner's 239 |
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| 303 | 303 | | discretion, to make payments to the contractor pursuant to the contract 240 |
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| 304 | 304 | | by cash, check or credit card. 241 |
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| 305 | 305 | | (B) (i) Each contract shall provide the owner with a right to cancel 242 |
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| 306 | 306 | | such contract and include a statement, in substantially the following 243 |
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| 307 | 307 | | form, in not less than ten-point, boldface type located immediately 244 |
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| 308 | 308 | | above the place provided in such contract for the owner's signature: 245 |
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| 309 | 309 | | "You may cancel this contract not later than midnight on the third 246 |
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| 310 | 310 | | business day after both you and the contractor signed this contract or 247 |
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| 311 | 311 | | you received notice from your insurer denying any part of your claim 248 |
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| 312 | 312 | | for the cost of the home improvements to be performed pursuant to 249 |
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| 313 | 313 | | this contract, whichever last occurs. Please see the attached notice of 250 |
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| 314 | 314 | | cancellation forms for additional information." 251 |
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| 315 | 315 | | (ii) Each contract shall contain not fewer than two cancellation 252 Raised Bill No. 7268 |
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| 316 | 316 | | |
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| 317 | 317 | | |
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| 318 | 318 | | |
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| 319 | 319 | | LCO No. 4712 10 of 13 |
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| 320 | 320 | | |
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| 321 | 321 | | forms, in substantially the following form and in not less than ten-253 |
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| 322 | 322 | | point, boldface type, attached to, and easily detachable from, such 254 |
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| 323 | 323 | | contract: 255 |
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| 324 | 324 | | NOTICE OF CANCELLATION 256 |
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| 325 | 325 | | You may cancel this contract not later than midnight on the third 257 |
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| 326 | 326 | | business day after both you and the contractor sign this contract or you 258 |
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| 327 | 327 | | receive notice from your insurer denying any part of your claim for the 259 |
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| 328 | 328 | | cost of the home improvements to be performed pursuant to this 260 |
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| 329 | 329 | | contract, whichever last occurs. In order to cancel this contract, you 261 |
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| 330 | 330 | | must sign, date and deliver, mail or electronically mail this notice to 262 |
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| 331 | 331 | | (insert name of contractor) at (insert principal business address and 263 |
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| 332 | 332 | | business electronic mail address of contractor) by the end of the three-264 |
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| 333 | 333 | | day period described in this notice. If you cancel this contract, the 265 |
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| 334 | 334 | | contractor shall return all payments that you have made to the 266 |
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| 335 | 335 | | contractor pursuant to this contract, less the reasonable cost of any and 267 |
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| 336 | 336 | | all home improvements that the contractor performed pursuant to this 268 |
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| 337 | 337 | | contract prior to cancellation, and cancel the contractor's security 269 |
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| 338 | 338 | | interest, if any, in any home improvements performed prior to 270 |
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| 339 | 339 | | cancellation not later than ten business days after the contractor 271 |
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| 340 | 340 | | receives this notice. You should retain a copy of this notice for your 272 |
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| 341 | 341 | | records. 273 |
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| 342 | 342 | | I HEREBY CANCEL THIS TRANSACTION: 274 |
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| 343 | 343 | | Signature 275 |
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| 344 | 344 | | (Insert date) 276 |
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| 345 | 345 | | [(B)] (C) Each change in the terms and conditions of a contract shall 277 |
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| 346 | 346 | | be in writing and shall be signed by the owner and contractor, except 278 |
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| 347 | 347 | | that the commissioner may, by regulation, dispense with the necessity 279 |
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| 348 | 348 | | for complying with the requirement that each change in a home 280 |
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| 349 | 349 | | improvement contract shall be in writing and signed by the owner and 281 |
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| 350 | 350 | | contractor. 282 Raised Bill No. 7268 |
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| 351 | 351 | | |
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| 352 | 352 | | |
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| 353 | 353 | | |
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| 354 | 354 | | LCO No. 4712 11 of 13 |
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| 355 | 355 | | |
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| 356 | 356 | | (2) A contract for repair, remediation or mitigation as set forth in 283 |
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| 357 | 357 | | section 38a-313a shall conform to the requirements set forth in 284 |
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| 358 | 358 | | subparagraph (A) of subdivision (1) of this subsection and section 38a-285 |
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| 359 | 359 | | 313a. 286 |
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| 360 | 360 | | (b) No home improvement contract shall be valid if it includes any 287 |
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| 361 | 361 | | provision obligating the owner to instruct the home improvement 288 |
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| 362 | 362 | | contractor, by a date determined by such contractor, that periodic 289 |
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| 363 | 363 | | home improvements are not to be performed unless it also includes a 290 |
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| 364 | 364 | | provision requiring the contractor to remind the owner of that 291 |
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| 365 | 365 | | obligation by means of a card or letter mailed to the owner and 292 |
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| 366 | 366 | | postmarked not earlier than twenty days, and not later than ten days, 293 |
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| 367 | 367 | | prior to such date. 294 |
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| 368 | 368 | | (c) The contractor shall provide and deliver to the owner, without 295 |
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| 369 | 369 | | charge, a completed copy of the home improvement contract at the 296 |
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| 370 | 370 | | time such contract is executed. 297 |
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| 371 | 371 | | (d) The commissioner may, by regulation, require the inclusion of 298 |
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| 372 | 372 | | additional contractual provisions. 299 |
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| 373 | 373 | | (e) Each home improvement contract entered into shall be 300 |
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| 374 | 374 | | considered a home solicitation sale pursuant to chapter 740 and shall 301 |
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| 375 | 375 | | be subject to the requirements of said chapter regardless of the location 302 |
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| 376 | 376 | | of the transaction or of the signing of the contract. Each home 303 |
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| 377 | 377 | | improvement contract in which the owner agrees to repay the 304 |
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| 378 | 378 | | contractor an amount loaned or advanced to the owner by the 305 |
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| 379 | 379 | | contractor for the purposes of paying for the goods and services 306 |
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| 380 | 380 | | provided in such contract, or which contains a finance charge, (1) shall 307 |
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| 381 | 381 | | set forth the information required to be disclosed pursuant to the 308 |
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| 382 | 382 | | Truth-in-Lending Act, sections 36a-675 to 36a-685, inclusive, (2) shall 309 |
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| 383 | 383 | | allow the owner to pay off in advance the full amount due and obtain 310 |
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| 384 | 384 | | a partial refund of any unearned finance charge, and (3) may contain a 311 |
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| 385 | 385 | | finance charge set at a rate of not more than the rate allowed for loans 312 |
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| 386 | 386 | | pursuant to section 37-4. As used in this subsection, "finance charge" 313 |
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| 387 | 387 | | means the amount in excess of the cash price for goods and services 314 Raised Bill No. 7268 |
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| 388 | 388 | | |
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| 389 | 389 | | |
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| 390 | 390 | | |
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| 391 | 391 | | LCO No. 4712 12 of 13 |
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| 392 | 392 | | |
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| 393 | 393 | | under the home improvement contract to be paid by the owner for the 315 |
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| 394 | 394 | | privilege of paying the contract price in installments over a period of 316 |
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| 395 | 395 | | time. 317 |
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| 396 | 396 | | (f) Nothing in this section shall preclude a contractor who has 318 |
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| 397 | 397 | | complied with subparagraphs (A)(i), (ii), [(vi)] (x), [(vii)] (xiii) and 319 |
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| 398 | 398 | | [(viii)] (xiv) of subdivision (1) of subsection (a) of this section from the 320 |
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| 399 | 399 | | recovery of payment for work performed based on the reasonable 321 |
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| 400 | 400 | | value of services which were requested by the owner, provided the 322 |
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| 401 | 401 | | court determines that it would be inequitable to deny such recovery. 323 |
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| 402 | 402 | | This act shall take effect as follows and shall amend the following |
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| 403 | 403 | | sections: |
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| 404 | 404 | | |
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| 405 | 405 | | Section 1 October 1, 2019 20-419 |
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| 406 | 406 | | Sec. 2 October 1, 2019 New section |
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| 407 | 407 | | Sec. 3 October 1, 2019 New section |
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| 408 | 408 | | Sec. 4 October 1, 2019 20-420(a) |
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| 409 | 409 | | Sec. 5 October 1, 2019 20-421(a) |
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| 410 | 410 | | Sec. 6 October 1, 2019 20-426(a) |
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| 411 | 411 | | Sec. 7 October 1, 2019, and |
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| 412 | 412 | | applicable to home |
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| 413 | 413 | | improvement contracts |
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| 414 | 414 | | entered into, amended or |
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| 415 | 415 | | renewed on or after said |
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| 416 | 416 | | date |
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| 417 | 417 | | 20-429 |
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| 418 | 418 | | |
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| 419 | 419 | | Statement of Purpose: |
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| 420 | 420 | | To: (1) Modify both the permissible and required terms of home |
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| 421 | 421 | | improvement contracts; (2) preclude home improvement contractors |
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| 422 | 422 | | from engaging in certain conduct to induce owners to enter into home |
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| 423 | 423 | | improvement contracts; (3) require home improvement contractors to |
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| 424 | 424 | | notify the commissioner regarding changes in their business names, |
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| 425 | 425 | | trade names and addresses; (4) require home improvement contractors |
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| 426 | 426 | | to maintain insurance coverage; (5) expand the required content of the |
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| 427 | 427 | | application for a certificate of registration as a home improvement |
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| 428 | 428 | | contractor; and (6) modify the grounds on which the Commissioner of |
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| 429 | 429 | | Consumer Protection may (A) reprimand or place a home |
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| 430 | 430 | | improvement contractor or salesperson on probation, or (B) revoke, Raised Bill No. 7268 |
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| 431 | 431 | | |
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| 432 | 432 | | |
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| 433 | 433 | | |
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| 434 | 434 | | LCO No. 4712 13 of 13 |
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| 435 | 435 | | |
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| 436 | 436 | | suspend, or refuse to issue or renew a certificate of registration as a |
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| 437 | 437 | | home improvement contractor or salesperson. |
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| 438 | 438 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, |
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| 439 | 439 | | except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is |
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| 440 | 440 | | not underlined.] |
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| 441 | 441 | | |
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