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General Assembly Raised Bill No. 182
February Session, 2020
LCO No. 1678
Referred to Committee on GENERAL LAW
Introduced by:
(GL)
AN ACT CONCERNING NE W HOME CONSTRUCTION
CONTRACTORS AND HOME IMPROVEMENT CONTRACTORS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 20-417b of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective July 1, 2021): 2
(a) No person shall engage in the business of new home construction 3
or hold himself or herself out as a new home construction contractor 4
unless such person has been issued a certificate of registration by the 5
commissioner in accordance with the provisions of sections 20-417a to 6
20-417j, inclusive, as amended by this act. No new home construction 7
contractor shall be relieved of responsibility for the conduct and acts of 8
its agents, employees or officers by reason of such new home 9
construction contractor's compliance with the provisions of sections 20-10
417a to 20-417j, inclusive, as amended by this act. 11
(b) Any person seeking a certificate of registration shall apply to the 12
commissioner, [in writing] online, on a form provided by the 13
commissioner. The application shall include (1) the applicant's name, 14
business street address and business telephone number, (2) the identity 15 Raised Bill No. 182
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of the insurer that provides the applicant with insurance coverage for 16
liability, (3) if such applicant is required by any provision of the general 17
statutes to have workers' compensation coverage, the identity of the 18
insurer that provides the applicant with such workers' compensation 19
coverage, [and] (4) if such applicant is required by any provision of the 20
general statutes to have an agent for service of process, the name and 21
address of such agent, and (5) proof of general liability insurance 22
coverage in an amount not less than six hundred thousand dollars, 23
demonstrated by providing the policy number and business name of the 24
insurance provider. Each such application shall be accompanied by a fee 25
of [two] one hundred [forty] twenty dollars, except that no such 26
application fee shall be required if such person has paid the registration 27
fee required under section 20-421, as amended by this act, during any 28
year in which such person's registration as a new home construction 29
contractor would be valid. 30
(c) Certificates issued to new home construction contractors shall not 31
be transferable or assignable, except when the holder of a certificate, 32
who is engaged in the business, changes the name or form of such 33
business. 34
(d) All certificates issued under the provisions of sections 20-417a to 35
20-417j, inclusive, as amended by this act, shall expire [biennially] 36
annually. The fee for renewal of a certificate shall be the same as the fee 37
charged for an original application, except that no renewal fee is due if 38
a person seeking renewal of a certificate has paid the registration fee 39
under section 20-427, as amended by this act, during any year in which 40
such person's registration as a new home construction contractor would 41
be valid. 42
(e) All certificates issued under the provisions of this chapter shall 43
expire [biennially] annually on the thirty-first day of March. [and may 44
be renewed by the applicant not later than six months after the 45
expiration date of such certificate.] The fee for renewal of a certificate 46
shall be the same as charged for the original application. [but shall be 47
charged on a pro rata basis, based upon the application date for such 48 Raised Bill No. 182
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renewal.] 49
(f) Failure to receive a notice of expiration or a renewal application 50
shall not exempt a new home construction contractor from the 51
obligation to renew. 52
(g) The holder of a certificate of registration issued by the 53
commissioner in accordance with the provisions of sections 20-417a to 54
20-417j, inclusive, as amended by this act, may opt to engage in home 55
improvement, as defined in section 20-419, as amended by this act. If a 56
new home construction contractor does opt to engage in such home 57
improvement, such new home construction contractor shall first notify 58
the commissioner in writing and shall pay to the Department of 59
Consumer Protection all the Home Improvement Guaranty Fund fees 60
due pursuant to section 20-432, as amended by this act. 61
Sec. 2. (NEW) (Effective July 1, 2021) (a) (1) A contract, as defined in 62
section 20-417a of the general statutes, shall not be valid or enforceable 63
against a consumer unless it: (A) Is in writing, (B) is signed by the new 64
home construction contractor and the consumer, (C) contains the entire 65
agreement between the new home construction contractor and the 66
consumer, (D) contains the date of the transaction, (E) contains the name 67
and address of the new home construction contractor and the 68
contractor's registration number, (F) contains a starting date and 69
completion date, (G) is entered into by a registered new home 70
construction contractor, and (H) includes a provision disclosing each 71
corporation, limited liability company, partnership, sole proprietorship 72
or other legal entity, which is or has been a new home construction 73
contractor pursuant to the provisions of chapter 399a of the general 74
statutes, in which the owner or owners of the new home construction 75
contractor are or have been a shareholder, member, partner or owner 76
during the previous five years. 77
(2) Each change in the terms and conditions of a contract, as defined 78
in section 20-417a of the general statutes, shall be in writing and shall be 79
signed by the new home construction contractor and the consumer, 80 Raised Bill No. 182
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except that the commissioner may, by regulation, dispense with the 81
necessity for complying with the provisions of this subdivision. 82
(b) The new home construction contractor shall provide and deliver 83
to the consumer, without charge, a completed copy of the new home 84
construction contract at the time such contract is executed. 85
(c) The commissioner may, by regulation, require the inclusion of 86
additional contractual provisions for contracts, as defined in section 20-87
417a of the general statutes. 88
(d) Each contract, as defined in section 20-417a of the general statutes, 89
in which the consumer agrees to repay the new home construction 90
contractor an amount loaned or advanced to the consumer by the 91
contractor for the purposes of paying for the goods and services or real 92
estate provided in such contract, or which contains a finance charge, (1) 93
shall set forth the information required to be disclosed pursuant to the 94
Truth-in-Lending Act, sections 36a-675 to 36a-685, inclusive, of the 95
general statutes, (2) shall allow the consumer to pay off in advance the 96
full amount due and obtain a partial refund of any unearned finance 97
charge, and (3) may contain a finance charge set at a rate of not more 98
than the rate allowed for loans pursuant to section 37-4 of the general 99
statutes. As used in this subsection, "finance charge" means the amount 100
in excess of the cash price for goods, services and real estate under the 101
new home construction contract to be paid by the consumer for the 102
privilege of paying the contract price in installments over a period of 103
time. 104
(e) Nothing in this section shall preclude a new home construction 105
contractor who has complied with subparagraphs (A), (B), (F) and (G) 106
of subdivision (1) of subsection (a) of this section from the recovery of 107
payment for work performed based on the reasonable value of services 108
which were requested by the consumer, provided the court determines 109
that it would be inequitable to deny such recovery. 110
Sec. 3. Section 20-417i of the general statutes is repealed and the 111
following is substituted in lieu thereof (Effective July 1, 2021): 112 Raised Bill No. 182
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(a) The commissioner shall establish and maintain the New Home 113
Construction Guaranty Fund. 114
(b) Each person who receives a certificate pursuant to sections 20-115
417a to 20-417j, inclusive, as amended by this act, shall pay a fee of four 116
hundred eighty dollars biennially to the fund. Such fee shall be payable 117
with the fee for an application for a certificate or renewal of a certificate. 118
(c) (1) For fiscal years commencing on or after July 1, 2003, payments 119
received under subsection (b) of this section shall be credited to the New 120
Home Construction Guaranty Fund until the balance in the fund equals 121
seven hundred fifty thousand dollars. Annually, if the balance in the 122
fund exceeds seven hundred fifty thousand dollars, the first three 123
hundred thousand dollars of the excess shall be deposited in the 124
consumer protection enforcement account established in section 21a-8a. 125
On June 1, 2004, and each June first thereafter, if the balance in the fund 126
exceeds seven hundred fifty thousand dollars, the excess shall be 127
deposited in the General Fund. 128
(2) Any money in the New Home Construction Guaranty Fund may 129
be invested or reinvested in the same manner as funds of the state 130
employees retirement system and the interest arising from such 131
investments shall be credited to the fund. 132
(d) Beginning October 1, 2000, whenever a consumer obtains a court 133
judgment, order or decree against any new home construction 134
contractor holding a certificate or who has held a certificate under 135
sections 20-417a to 20-417j, inclusive, as amended by this act, within [the 136
past] two years of the date of entering into the contract with the 137
consumer, for loss or damages sustained by reason of any violation of 138
the provisions of sections 20-417a to 20-417j, inclusive, as amended by 139
this act, by a person holding a certificate under said sections, such 140
consumer may, upon the final determination of, or expiration of time for 141
taking, an appeal in connection with any such judgment, order or 142
decree, apply to the commissioner for an order directing payment out 143
of the New Home Construction Guaranty Fund of the amount, not 144 Raised Bill No. 182
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exceeding thirty thousand dollars, unpaid upon the judgment, order or 145
decree for actual damages and costs taxed by the court against such 146
contractor, exclusive of punitive damages. The application shall be 147
made on forms provided by the commissioner and shall be 148
accompanied by a copy of the court judgment, order or decree obtained 149
against the new home construction contractor together with a [notarized 150
affidavit,] statement signed and sworn to by the consumer, affirming 151
that the consumer has: (1) Complied with all the requirements of this 152
subsection; (2) obtained a judgment, order or decree stating the amount 153
of the judgment, order or decree and the amount owing on the 154
judgment, order or decree at the date of application; and (3) made a 155
good faith effort to satisfy any such judgment, order or decree in 156
accordance with the provisions of chapter 906 which effort may include 157
causing to be issued a writ of execution upon such judgment, order or 158
decree but the officer executing the same has made a return showing 159
that no bank accounts or personal property of such contractor liable to 160
be levied upon in satisfaction of the judgment, order or decree could be 161
found, or that the amount realized on the sale of them or of such of them 162
as were found, under the execution, was insufficient to satisfy the actual 163
damage portion of the judgment, order or decree or stating the amount 164
realized and the balance remaining due on the judgment, order or 165
decree after application on the judgment, order or decree of the amount 166
realized, except that the requirements of this subdivision shall not apply 167
to a judgment, order or decree obtained by the consumer in small claims 168
court. A true and attested copy of such executing officer's return, when 169
required, shall be attached to such application. [and affidavit.] 170
Whenever the consumer satisfies the commissioner or the 171
commissioner's designee that it is not practicable to comply with the 172
requirements of subdivision (3) of this subsection and that the consumer 173
has taken all reasonable steps to collect the amount of the judgment, 174
order or decree or the unsatisfied part of the judgment, order or decree 175
and has been unable to collect the same, the commissioner or the 176
commissioner's designee may, in the commissioner's or the 177
commissioner's designee's discretion, dispense with the necessity for 178
complying with such requirement. No application for an order directing 179 Raised Bill No. 182
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payment out of the fund shall be made later than two years from the 180
final determination of, or expiration of time for taking, an appeal of such 181
court judgment, order or decree and no such application shall be for an 182
amount in excess of thirty thousand dollars. 183
(e) Upon receipt of such application together with such copy of the 184
court judgment, order or decree, [notarized affidavit] statement and, 185
except as otherwise provided in subsection (d) of this section, true and 186
attested copy of the executing officer's return, the commissioner or the 187
commissioner's designee shall inspect such documents for their veracity 188
and upon a determination that such documents are complete and 189
authentic and that the consumer has not been paid, the commissioner 190
shall order payment out of the New Home Construction Guaranty Fund 191
of the amount not exceeding thirty thousand dollars unpaid upon the 192
judgment, order or decree for actual damages and costs taxed by the 193
court against the contractor, exclusive of punitive damages. 194
(f) Beginning October 1, 2000, whenever a consumer is awarded an 195
order of restitution against any new home construction contractor for 196
loss or damages sustained as a result of any violation of the provisions 197
of sections 20-417a to 20-417j, inclusive, as amended by this act, by a 198
person holding a certificate or who has held a certificate under said 199
sections within [the past] two years of the date of entering into the 200
contract with the consumer, in (1) a proceeding brought by the 201
commissioner pursuant to subsection (h) of this section or subsection (d) 202
of section 42-110d, (2) a proceeding brought by the Attorney General 203
pursuant to subsection (a) of section 42-110m or subsection (d) of section 204
42-110d, or (3) a criminal proceeding pursuant to section 20-417e, such 205
consumer may, upon the final determination of, or expiration of time for 206
taking, an appeal in connection with any such order of restitution, apply 207
to the commissioner for an order directing payment out of the New 208
Home Construction Guaranty Fund of the amount not exceeding thirty 209
thousand dollars unpaid upon the order of resti tution. The 210
commissioner may issue such order upon a determination that the 211
consumer has not been paid. 212 Raised Bill No. 182
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(g) Before the commissioner may issue any order directing payment 213
out of the New Home Construction Guaranty Fund to a consumer 214
pursuant to subsection (e) or (f) of this section, the commissioner shall 215
first notify the new home construction contractor of the consumer's 216
application for an order directing payment out of the fund and of the 217
new home construction contractor's right to a hearing to contest the 218
disbursement in the event that such contractor has already paid the 219
consumer. Such notice shall be given to the new home construction 220
contractor not later than fifteen days after receipt by the commissioner 221
of the consumer's application for an order directing payment out of the 222
fund. If the new home construction contractor requests a hearing, in 223
writing, by certified mail not later than fifteen days after receiving the 224
notice from the commissioner, the commissioner shall grant such 225
request and shall conduct a hearing in accordance with the provisions 226
of chapter 54. If the commissioner does not receive a written request for 227
a hearing by certified mail from the new home construction contractor 228
on or before the fifteenth day from the contractor's receipt of such notice, 229
the commissioner shall conclude that the consumer has not been paid, 230
and the commissioner shall issue an order directing payment out of the 231
fund for the amount not exceeding thirty thousand dollars unpaid upon 232
the judgment, order or decree for actual damages and costs taxed by the 233
court against the new home construction contractor, exclusive of 234
punitive damages, or for the amount not exceeding thirty thousand 235
dollars unpaid upon the order of restitution. 236
(h) The commissioner or the commissioner's designee may proceed 237
against any new home construction contractor holding a certificate or 238
who has held a certificate under sections 20-417a to 20-417j, inclusive, as 239
amended by this act, within [the past] two years of the effective date of 240
entering into the contract with the consumer, for an order of restitution 241
arising from loss or damages sustained by any consumer as a result of 242
any violation of the provisions of said sections 20-417a to 20-417j, 243
inclusive, as amended by this act. Any such proceeding shall be held in 244
accordance with the provisions of chapter 54. In the course of such 245
proceeding, the commissioner or the commissioner's designee shall 246 Raised Bill No. 182
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decide whether to (1) exercise the powers specified in section 20-417c, 247
as amended by this act, (2) order restitution arising from loss or 248
damages sustained by any consumer as a result of any violation of the 249
provisions of sections 20-417a to 20-417j, inclusive, as amended by this 250
act, and (3) order payment out of the New Home Construction Guaranty 251
Fund. Notwithstanding the provisions of chapter 54, the decision of the 252
commissioner or the commissioner's designee shall be final with respect 253
to any proceeding to order payment out of the fund and the 254
commissioner and the commissioner's designee shall not be subject to 255
the requirements of chapter 54 as such requirements relate to an appeal 256
from any such decision. The commissioner or the commissioner's 257
designee may hear complaints of all consumers submitting claims 258
against a single new home construction contractor in one proceeding. 259
(i) No application for an order directing payment out of the New 260
Home Construction Guaranty Fund shall be made later than two years 261
from the final determination of, or expiration of time for, an appeal in 262
connection with any judgment, order or decree of restitution, and no 263
such application shall be for an amount in excess of thirty thousand 264
dollars. 265
(j) In order to preserve the integrity of the New Home Construction 266
Guaranty Fund, the commissioner, in the commissioner's sole 267
discretion, may order payment out of the fund of an amount less than 268
the actual loss or damages incurred by the consumer or less than the 269
order of restitution awarded by the commissioner or the Superior Court. 270
In no event shall any payment out of the fund be in excess of thirty 271
thousand dollars for any single claim by a consumer. 272
(k) If the money deposited in the New Home Construction Guaranty 273
Fund is insufficient to satisfy any duly authorized claim or portion of a 274
claim, the commissioner shall, when sufficient money has been 275
deposited in the fund, satisfy such unpaid claims or portions of claims 276
not exceeding thirty thousand dollars, in the order that such claims or 277
portions of claims were originally determined. 278 Raised Bill No. 182
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(l) Whenever the commissioner has caused any sum to be paid from 279
the New Home Construction Guaranty Fund to a consumer, the 280
commissioner shall be subrogated to all of the rights of the consumer up 281
to the amount paid plus reasonable interest, and prior to receipt of any 282
payment from the fund, the consumer shall assign all of the consumer's 283
right, title and interest in the claim up to such amount to the 284
commissioner, and any amount and interest recovered by the 285
commissioner on the claim shall be deposited in the fund. 286
(m) If the commissioner orders the payment of any amount as a result 287
of a claim against a new home construction contractor, the 288
commissioner shall determine if such contractor is possessed of assets 289
liable to be sold or applied in satisfaction of the claim on the New Home 290
Construction Guaranty Fund. If the commissioner discovers any such 291
assets, the commissioner may request that the Attorney General take 292
any action necessary for the reimbursement of the fund. 293
(n) If the commissioner orders the payment of an amount as a result 294
of a claim against a new home c onstruction contractor, the 295
commissioner may, after notice and hearing in accordance with the 296
provisions of chapter 54, revoke the certificate of such contractor and 297
such contractor shall not be eligible to receive a new or renewed 298
certificate until such contractor has repaid such amount in full, plus 299
interest from the time such payment is made from the New Home 300
Construction Guaranty Fund, at a rate to be in accordance with section 301
37-3b, except that the commissioner may, in the commissioner's sole 302
discretion, permit a new home construction contractor to receive a new 303
or renewed certificate after such contractor has entered into an 304
agreement with the commissioner whereby such contractor agrees to 305
repay the fund in full in the form of periodic payments over a set period 306
of time. Any such agreement shall include a provision providing for the 307
summary suspension of any and all certificates held by the new home 308
construction contractor if payment is not made in accordance with the 309
terms of the agreement. 310
Sec. 4. Section 20-419 of the general statutes is repealed and the 311 Raised Bill No. 182
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following is substituted in lieu thereof (Effective July 1, 2021): 312
As used in this chapter, unless the context otherwise requires: 313
(1) "Certificate" means a certificate of registration issued under 314
section 20-422. 315
(2) "Commissioner" means the Commissioner of Consumer 316
Protection or any person designated by the commissioner to administer 317
and enforce this chapter. 318
(3) "Contractor" means any person who owns and operates a home 319
improvement business or who undertakes, offers to undertake or agrees 320
to perform any home improvement. "Contractor" does not include a 321
person for whom the total price of all of his home improvement 322
contracts with all of his customers does not exceed one thousand dollars 323
during any period of twelve consecutive months. 324
(4) "Home improvement" includes, but is not limited to, the repair, 325
replacement, remodeling, alteration, conversion, modernization, 326
improvement, rehabilitation or sandblasting of, or addition to any land 327
or building or that portion thereof which is used or designed to be used 328
as a private residence, dwelling place or residential rental property, or 329
the construction, replacement, installation or improvement of alarm 330
systems not requiring electrical work as defined by section 20-330, 331
driveways, swimming pools, porches, garages, roofs, siding, insulation, 332
sunrooms, flooring, patios, landscaping, fences, doors and windows, 333
waterproofing, water, fire or storm restoration or mold remediation in 334
connection with such land or building or that portion thereof which is 335
used or designed to be used as a private residence, dwelling place or 336
residential rental property or the removal or replacement of a residential 337
underground heating oil storage tank system, in which the total price 338
for all work agreed upon between the contractor and owner or proposed 339
or offered by the contractor exceeds two hundred dollars. "Home 340
improvement" does not include: (A) The construction of a new home; 341
(B) the sale of goods by a seller who neither arranges to perform nor 342
performs, directly or indirectly, any work or labor in connection with 343 Raised Bill No. 182
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the installation or application of the goods or materials; (C) the sale of 344
goods or services furnished for commercial or business use or for resale, 345
provided commercial or business use does not include use as residential 346
rental property; (D) the sale of appliances, such as stoves, refrigerators, 347
freezers, room air conditioners and others which are designed for and 348
are easily removable from the premises without material alteration 349
thereof; [and] (E) tree cutting or the grinding of tree stumps or shrubs; 350
and (F) any work performed without compensation by the owner on his 351
own private residence or residential rental property. 352
(5) "Home improvement contract" means an agreement between a 353
contractor and an owner for the performance of a home improvement. 354
(6) "Owner" means a person who owns or resides in a private 355
residence and includes any agent thereof, including, but not limited to, 356
a condominium association. An owner of a private residence shall not 357
be required to reside in such residence to be deemed an owner under 358
this subdivision. 359
(7) "Person" means an individual, partnership, limited liability 360
company or corporation. 361
(8) "Private residence" means a single family dwelling, a multifamily 362
dwelling consisting of not more than six units, or a unit, common 363
element or limited common element in a condominium, as defined in 364
section 47-68a, or in a common interest community, as defined in section 365
47-202, or any number of condominium units for which a condominium 366
association acts as an agent for such unit owners. 367
(9) "Salesman" means any individual who (A) negotiates or offers to 368
negotiate a home improvement contract with an owner or, (B) solicits or 369
otherwise endeavors to procure by any means whatsoever, directly or 370
indirectly, a home improvement contract from an owner on behalf of a 371
contractor. 372
(10) "Residential rental property" means a single family dwelling, a 373
multifamily dwelling consisting of not more than six units, or a unit, 374 Raised Bill No. 182
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common element or limited common element in a condominium, as 375
defined in section 47-68a, or in a common interest community, as 376
defined in section 47-202, which is not owner-occupied. 377
(11) "Residential underground heating oil storage tank system" 378
means an underground storage tank system used with or without 379
ancillary components in connection with real property composed of 380
four or less residential units. 381
(12) "Underground storage tank system" means an underground tank 382
or combination of tanks, with any underground pipes or ancillary 383
equipment or containment systems connected to such tank or tanks, 384
used to contain an accumulation of petroleum, which volume is ten per 385
cent or more beneath the surface of the ground. 386
Sec. 5. Section 20-420a of the general statutes is repealed and the 387
following is substituted in lieu thereof (Effective July 1, 2021): 388
(a) No corporation shall perform or offer to perform home 389
improvements in this state unless such corporation has been issued a 390
certificate of registration by the commissioner. No such corporation 391
shall be relieved of responsibility for the conduct and acts of its agents, 392
employees or officers by reason of its compliance with the provisions of 393
this section, nor shall any individual contractor be relieved of 394
responsibility for home improvements performed by reason of his 395
employment or relationship with such corporation. 396
(b) A qualifying corporation desiring a certificate of registration shall 397
apply to the commissioner, [in writing] online, on a form provided by 398
the commissioner. The application shall (1) state the name and address 399
of such corporation, the city or town and the street and number where 400
such corporation is to maintain its principal place of business in this 401
state [,] and the names and addresses of officers; [,] and (2) contain a 402
statement that one or more individuals who shall direct, supervise or 403
perform home improvements for such corporation are registered home 404
improvement contractors, a statement that the applicant has obtained 405
general liability insurance coverage in an amount not less than six 406 Raised Bill No. 182
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hundred thousand dollars, demonstrated by providing the policy 407
number and business name of the insurance provider and such other 408
information as the commissioner may require. 409
(c) Any certificate issued by the commissioner pursuant to this 410
section may be revoked, [or] suspended, or have conditions placed upon 411
the holder of the certificate by the commissioner after notice and hearing 412
in accordance with the provisions of chapter 54 concerning contested 413
cases, if it is shown that the holder of such certificate has not conformed 414
to the requirements of this chapter, that the certificate was obtained 415
through fraud or misrepresentation or that the contractor of record 416
employed by or acting on behalf of such corporation has had his 417
certificate of registration suspended or revoked by the commissioner. 418
The commissioner may refuse to issue or renew a certificate if any facts 419
exist which would entitle the commissioner to suspend or revoke an 420
existing certificate. 421
(d) Each such corporation shall file with the commissioner upon 422
application or renewal thereof a designation of an individual or 423
individuals registered to perform home improvements in this state who 424
shall direct or supervise the performance of home improvements by 425
such corporation in this state. Such corporation shall notify the 426
commissioner of any change in such designation within thirty days after 427
such change becomes effective. 428
(e) Each such corporation shall file with the commissioner upon 429
application or renewal thereof a certificate of good standing issued by 430
the office of the Secretary of the State. Such corporation shall notify the 431
commissioner of any change in corporate good standing within thirty 432
days after such change becomes effective. 433
Sec. 6. Subsection (a) of section 20-421 of the general statutes is 434
repealed and the following is substituted in lieu thereof (Effective July 1, 435
2021): 436
(a) Any person seeking a certificate of registration shall apply to the 437
commissioner [in writing] online, on a form provided by the 438 Raised Bill No. 182
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commissioner. The application shall include the applicant's name, 439
residence address, business address, business telephone number, proof 440
that the applicant has obtained general liability insurance coverage in 441
an amount not less than six hundred thousand dollars, demonstrated by 442
providing the policy number and business name of the insurance 443
provider, and such other information as the commissioner may require. 444
Sec. 7. Subsection (e) of section 20-427 of the general statutes is 445
repealed and the following is substituted in lieu thereof (Effective July 1, 446
2021): 447
(e) Certificates issued to home improvement contractors or salesmen 448
shall not be transferable or assignable, except when the holder of the 449
certificate changes only the name or type of business entity of such 450
business. 451
Sec. 8. Section 20-432 of the general statutes is repealed and the 452
following is substituted in lieu thereof (Effective July 1, 2021): 453
(a) The commissioner shall establish and maintain the Home 454
Improvement Guaranty Fund. 455
(b) Each salesman who receives a certificate pursuant to this chapter 456
shall pay a fee of forty dollars annually. Each contractor who receives a 457
certificate pursuant to this chapter shall pay a fee of one hundred dollars 458
annually to the guaranty fund. Such fee shall be payable with the fee for 459
an application for a certificate or renewal thereof. The annual fee for a 460
contractor who receives a certificate of registration as a home 461
improvement contractor acting solely as the contractor of record for a 462
corporation shall be waived, provided the contractor of record shall use 463
such registration for the sole purpose of directing, supervising or 464
performing home improvements for such corporation. 465
(c) Payments received under subsection (b) of this section shall be 466
credited to the guaranty fund until the balance in such fund equals 467
seven hundred fifty thousand dollars. Annually, if the balance in the 468
fund exceeds seven hundred fifty thousand dollars, the first four 469 Raised Bill No. 182
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hundred thousand dollars of the excess shall be deposited into the 470
consumer protection enforcement account established in section 21a-8a. 471
Any excess thereafter shall be deposited in the General Fund. Any 472
money in the guaranty fund may be invested or reinvested in the same 473
manner as funds of the state employees retirement system, and the 474
interest arising from such investments shall be credited to the guaranty 475
fund. 476
(d) Whenever an owner obtains a court judgment, order or decree 477
against any contractor holding a certificate or who has held a certificate 478
under this chapter within [the past] two years of the effective date of 479
entering into the contract with the owner, for loss or damages sustained 480
by reason of performance of or offering to perform a home improvement 481
within this state by a contractor holding a certificate under this chapter, 482
such owner may, upon the final determination of, or expiration of time 483
for, taking an appeal in connection with any such judgment, order or 484
decree, apply to the commissioner for an order directing payment out 485
of said guaranty fund of the amount unpaid upon the judgment, order 486
or decree, for actual damages and costs taxed by the court against the 487
contractor, exclusive of punitive damages. The application shall be 488
made on forms provided by the commissioner and shall be 489
accompanied by a copy of the court judgment, order or decree obtained 490
against the contractor. [together with a notarized affidavit, signed and 491
sworn to by the owner, affirming that: (1) He or she has complied with 492
all the requirements of this subsection; (2) he or she has obtained a 493
judgment, order or decree, stating the amount thereof and the amount 494
owing thereon at the date of application; and (3) he or she has caused to 495
be issued a writ of execution upon said judgment, order or decree and 496
the officer executing the same has made a return showing that no bank 497
accounts or personal property of the contractor liable to be levied upon 498
in satisfaction of the judgment, order or decree could be found, or that 499
the amount realized on the sale of them or of such of them as were 500
found, under the execution, was insufficient to satisfy the actual damage 501
portion of the judgment, order or decree or stating the amount realized 502
and the balance remaining due on the judgment, order or decree after 503 Raised Bill No. 182
LCO No. 1678 17 of 26
application thereon of the amount realized, except that the requirements 504
of this subdivision shall not apply to a judgment, order or decree 505
obtained by the owner in small claims court.] A true and attested copy 506
of said executing officer's return, when required, shall be attached to 507
such application. [and affidavit.] No application for an order directing 508
payment out of the guaranty fund shall be made later than two years 509
after the final determination of, or expiration of time for, taking an 510
appeal of said court judgment, order or decree. 511
(e) Upon receipt of said application together with said copy of the 512
court judgment, order or decree, [notarized affidavit] and true and 513
attested copy of the executing officer's return, the commissioner or his 514
designee shall inspect such documents for their veracity and upon a 515
determination that such documents are complete and authentic, and a 516
determination that the owner has not been paid, the commissioner shall 517
order payment out of the guaranty fund of the amount unpaid upon the 518
judgment, order or decree for actual damages and costs taxed by the 519
court against the contractor, exclusive of punitive damages. 520
(f) Whenever an owner is awarded an order of restitution against any 521
contractor for loss or damages sustained by reason of performance of or 522
offering to perform a home improvement in this state by a contractor 523
holding a certificate or who has held a certificate under this chapter 524
within [the past] two years of the date of entering into the contract with 525
the owner, in a proceeding brought by the commissioner pursuant to 526
this section or subsection (d) of section 42-110d, or in a proceeding 527
brought by the Attorney General pursuant to subsection (a) of section 528
42-110m or subsection (d) of section 42-110d, or a criminal proceeding 529
pursuant to section 20-427, as amended by this act, such owner may, 530
upon the final determination of, or expiration of time for, taking an 531
appeal in connection with any such order of restitution, apply to the 532
commissioner for an order directing payment out of said guaranty fund 533
of the amount unpaid upon the order of restitution. The commissioner 534
may issue said order upon a determination that the owner has not been 535
paid. 536 Raised Bill No. 182
LCO No. 1678 18 of 26
(g) Before the commissioner may issue any order directing payment 537
out of the guaranty fund to an owner pursuant to subsections (e) or (f) 538
of this section, the commissioner shall first notify the contractor of the 539
owner's application for an order directing payment out of the guaranty 540
fund and of the contractor's right to a hearing to contest the 541
disbursement in the event that the contractor has already paid the owner 542
or is complying with a payment schedule in accordance with a court 543
judgment, order or decree. Such notice shall be given to the contractor 544
not later than fifteen days after receipt by the commissioner of the 545
owner's application for an order directing payment out of the guaranty 546
fund. If the contractor requests a hearing, in writing, by certified mail 547
not later than fifteen days after receiving the notice from the 548
commissioner, the commissioner shall grant such request and shall 549
conduct a hearing in accordance with the provisions of chapter 54. If the 550
commissioner does not receive a request by certified mail from the 551
contractor for a hearing not later than fifteen days after the contractor's 552
receipt of such notice, the commissioner shall determine that the owner 553
has not been paid, and the commissioner shall issue an order directing 554
payment out of the guaranty fund for the amount unpaid upon the 555
judgment, order or decree for actual damages and costs taxed by the 556
court against the contractor, exclusive of punitive damages, or for the 557
amount unpaid upon the order of restitution. 558
(h) The commissioner or his designee may proceed against any 559
contractor holding a certificate or who has held a certificate under this 560
chapter within the past two years of the effective date of entering into 561
the contract with the owner, for an order of restitution arising from loss 562
or damages sustained by any person by reason of such contractor's 563
performance of or offering to perform a home improvement in this state. 564
Any such proceeding shall be held in accordance with the provisions of 565
chapter 54. In the course of such proceeding, the commissioner or his 566
designee shall decide whether to exercise his powers pursuant to section 567
20-426, as amended by this act; whether to order restitution arising from 568
loss or damages sustained by any person by reason of such contractor's 569
performance or offering to perform a home improvement in this state; 570 Raised Bill No. 182
LCO No. 1678 19 of 26
and whether to order payment out of the guaranty fund. 571
Notwithstanding the provisions of chapter 54, the decision of the 572
commissioner or his designee shall be final with respect to any 573
proceeding to order payment out of the guaranty fund and the 574
commissioner and his designee shall not be subject to the requirements 575
of chapter 54 as they relate to appeal from any such decision. The 576
commissioner or his designee may hear complaints of all owners 577
submitting claims against a single contractor in one proceeding. 578
(i) No application for an order directing payment out of the guaranty 579
fund shall be made later than two years from the final determination of, 580
or expiration of time for, appeal in connection with any judgment, order 581
or decree of restitution. 582
(j) Whenever the owner satisfies the commissioner or his designee 583
that it is not practicable to comply with the requirements of [subdivision 584
(3) of] subsection (d) of this section and that the owner has taken all 585
reasonable steps to collect the amount of the judgment, order or decree 586
or the unsatisfied part thereof and has been unable to collect the same, 587
the commissioner or his designee may in his discretion dispense with 588
the necessity for complying with such requirement. 589
(k) In order to preserve the integrity of the guaranty fund, the 590
commissioner, in the commissioner's sole discretion, may order 591
payment out of said fund of an amount less than the actual loss or 592
damages incurred by the owner or less than the order of restitution 593
awarded by the commissioner or the Superior Court. In no event shall 594
any payment out of said guaranty fund be in excess of fifteen thousand 595
dollars for any single claim by an owner. 596
(l) If the money deposited in the guaranty fund is insufficient to 597
satisfy any duly authorized claim or portion thereof, the commissioner 598
shall, when sufficient money has been deposited in the fund, satisfy 599
such unpaid claims or portions thereof, in the order that such claims or 600
portions thereof were originally determined. 601
(m) Whenever the commissioner has caused any sum to be paid from 602 Raised Bill No. 182
LCO No. 1678 20 of 26
the guaranty fund to an owner, the commissioner shall be subrogated to 603
all of the rights of the owner up to the amount paid plus reasonable 604
interest, and prior to receipt of any payment from the guaranty fund, 605
the owner shall assign all of this right, title and interest in the claim up 606
to such amount to the commissioner, and any amount and interest 607
recovered by the commissioner on the claim shall be deposited to the 608
guaranty fund. 609
(n) If the commissioner orders the payment of any amount as a result 610
of a claim against a contractor, the commissioner shall determine if the 611
contractor is possessed of assets liable to be sold or applied in 612
satisfaction of the claim on the guaranty fund. If the commissioner 613
discovers any such assets, he may request that the Attorney General take 614
any action necessary for the reimbursement of the guaranty fund. 615
(o) If the commissioner orders the payment of an amount as a result 616
of a claim against a contractor, the commissioner may, after notice and 617
hearing in accordance with the provisions of chapter 54, revoke the 618
certificate of the contractor and the contractor shall not be eligible to 619
receive a new or renewed certificate until he has repaid such amount in 620
full, plus interest from the time said payment is made from the guaranty 621
fund, at a rate to be in accordance with section 37-3b, except that the 622
commissioner may, in his sole discretion, permit a contractor to receive 623
a new or renewed certificate after that contractor has entered into an 624
agreement with the commissioner whereby the contractor agrees to 625
repay the guaranty fund in full in the form of periodic payments over a 626
set period of time. Any such agreement shall include a provision 627
providing for the summary suspension of any and all certificates held 628
by the contractor if payment is not made in accordance with the terms 629
of the agreement. 630
Sec. 9. Section 20-417c of the general statutes is repealed and the 631
following is substituted in lieu thereof (Effective March 31, 2025): 632
The commissioner may revoke, suspend, [or] refuse to issue or renew, 633
or place conditions upon the renewal of any certificate issued pursuant 634 Raised Bill No. 182
LCO No. 1678 21 of 26
to sections 20-417a to 20-417j, inclusive, as amended by this act, or place 635
a registrant on probation or issue a letter of reprimand after notice and 636
hearing in accordance with the provisions of chapter 54 concerning 637
contested cases if it is shown that the holder of such certificate has: (1) 638
Failed to comply with any provision of sections 20-417a to 20-417j, 639
inclusive, as amended by this act, or any regulation adopted pursuant 640
to said sections; (2) obtained the certificate through fraud or 641
misrepresentation; (3) engaged in conduct of a character likely to 642
mislead, deceive or defraud the public or the commissioner; (4) engaged 643
in any untruthful or misleading advertising; (5) [failed to reimburse the 644
New Home Construction Guaranty Fund established pursuant to 645
section 20-417i for any moneys paid to a consumer pursuant to said 646
section; (6)] engaged in an unfair or deceptive business practice under 647
subsection (a) of section 42-110b; [(7)] (6) failed to timely complete any 648
task, as specified in a written contract of sale; [(8)] (7) failed to remedy 649
any violation of any provision of sections 47-116 to 47-121, inclusive, or 650
any regulation adopted pursuant to said sections; [(9)] (8) failed to 651
remedy any violation of any provision of the State Building Code; or 652
[(10)] (9) if applicable, failed to maintain its certificate of good standing 653
issued by the office of the Secretary of the State. 654
Sec. 10. Section 20-417j of the general statutes is repealed and the 655
following is substituted in lieu thereof (Effective March 31, 2025): 656
(a) Sections 20-417a to 20-417i, inclusive, as amended by this act, do 657
not apply to any of the following persons or organizations: (1) Any 658
person holding a current license as a real estate broker or salesperson 659
issued pursuant to chapter 392, provided such person engages only in 660
work for which such person is licensed under chapter 392; (2) any 661
person licensed or otherwise authorized under chapter 412 to sell or 662
place a mobile manufactured home, as defined in section 21-64, upon a 663
mobile manufactured home park or mobile manufactured space or lot, 664
both as defined in section 21-64, provided such person engages only in 665
work for which such person is licensed or otherwise authorized under 666
chapter 412; (3) any other person holding a professional or occupational 667
license, registration or certificate issued pursuant to the general statutes, 668 Raised Bill No. 182
LCO No. 1678 22 of 26
provided such person engages only in the work for which such person 669
is licensed, registered or certified; and (4) any new home construction 670
contractor who enters into one or more new home construction 671
contracts related to the same new home when such contract or contracts 672
in the aggregate with respect to that home has a total price for work or 673
services that is less than three thousand five hundred dollars. 674
(b) The commissioner shall reimburse the amount of the fees paid for 675
a certificate issued under section 20-417b, as amended by this act, [and 676
the amount of fees paid into the New Home Construction Guaranty 677
Fund pursuant to section 20-417i] if such person for whom 678
reimbursement is requested (1) is a person exempt from registration as 679
a new home construction contractor pursuant to subsection (a) of this 680
section, and (2) makes such request in writing to the Department of 681
Consumer Protection on a form supplied by the department and such 682
request is received by the department on or before June 30, 2001. 683
Sec. 11. Section 20-426 of the general statutes is repealed and the 684
following is substituted in lieu thereof (Effective March 31, 2025): 685
(a) The commissioner may revoke, suspend or refuse to issue or 686
renew any certificate of registration as a home improvement contractor 687
or salesperson or place a registrant on probation or issue a letter of 688
reprimand for: (1) Conduct of a character likely to mislead, deceive or 689
defraud the public or the commissioner; (2) engaging in any untruthful 690
or misleading advertising; (3) [failing to reimburse the guaranty fund 691
established pursuant to section 20-432 for any moneys paid to an owner 692
pursuant to subsection (o) of section 20-432; (4)] unfair or deceptive 693
business practices; or [(5)] (4) violation of any of the provisions of the 694
general statutes relating to home improvements or any regulation 695
adopted pursuant to any of such provisions. The commissioner may 696
refuse to issue or renew any certificate of registration as a home 697
improvement contractor or salesperson of any person subject to the 698
registration requirements of chapter 969. 699
(b) The commissioner shall not revoke or suspend any certificate of 700 Raised Bill No. 182
LCO No. 1678 23 of 26
registration or require the posting of a bond except upon notice and 701
hearing in accordance with chapter 54. 702
Sec. 12. Section 21a-11 of the general statutes is repealed and the 703
following is substituted in lieu thereof (Effective March 31, 2025): 704
(a) The Commissioner of Consumer Protection may, subject to the 705
provisions of chapter 67, employ such agents and assistants as are 706
necessary to enforce the provisions of the general statutes wherein said 707
commissioner is empowered to carry out the duties and responsibilities 708
assigned to him or his department. For the purpose of inquiring into any 709
suspected violation of such provisions, the commissioner and his 710
deputy and assistants shall have free access, at all reasonable hours, to 711
all places and premises, homes and apartments of private families 712
keeping no boarders excepted. The commissioner and his or her deputy 713
or assistants shall have the authority to issue citations pursuant to 714
section 51-164n for violations for the purpose of enforcing such 715
provisions. 716
(b) On the tender of the market price, the commissioner or his deputy 717
may take from any person, firm or corporation samples of any article 718
which he suspects is sold, offered for sale, kept with intent to sell, made 719
or manufactured contrary to any provision of this chapter or related 720
chapters under the jurisdiction of said commissioner. He may analyze 721
such samples or have them analyzed by a state chemist or by an 722
experiment station or by the laboratories of the Department of Public 723
Health, and a sworn or affirmed certificate by such analyst shall be 724
prima facie evidence of the ingredients and constituents of the samples 725
analyzed. If such analysis shows that any such sample does not conform 726
to the requirements of law, and gives the commissioner or his deputy 727
reasonable grounds for believing that any provision of this chapter or 728
related chapters under his jurisdiction has been violated, he shall cause 729
such violator to be prosecuted. Any person who refuses the access 730
provided for herein to the commissioner, his deputy or assistants, or 731
who refuses to sell the samples provided for herein, shall be guilty of a 732
class D misdemeanor. Evidence of violation of any provision of this 733 Raised Bill No. 182
LCO No. 1678 24 of 26
section shall be prima facie evidence of wilful violation. 734
(c) The commissioner may, subject to the provisions of chapter 54, 735
revoke, suspend or deny any license or registration issued by the 736
department in the event that such licensee or registrant, including, but 737
not limited to, an owner of any business entity holding such license or 738
registration, owes moneys to any guaranty fund or account maintained 739
or used by the department, including, but not limited to, [the Home 740
Improvement Guaranty Fund established pursuant to section 20-432, 741
the New Home Construction Guaranty Fund established pursuant to 742
section 20-417i,] the Connecticut Health Club Guaranty Fund 743
established pursuant to section 21a-226, the Real Estate Guaranty Fund 744
established pursuant to section 20-324a and the privacy protection 745
guaranty and enforcement account established pursuant to section 42-746
472a. 747
Sec. 13. Section 20-420 of the general statutes is repealed and the 748
following is substituted in lieu thereof (Effective July 1, 2021): 749
(a) No person shall hold himself or herself out to be a contractor or 750
salesperson without first obtaining a certificate of registration from the 751
commissioner as provided in this chapter, except that an individual or 752
partner, or officer or director of a corporation registered as a contractor 753
shall not be required to obtain a salesperson's certificate, except as 754
provided in subsection (e) of this section. No certificate shall be given to 755
any person who holds himself or herself out to be a contractor that 756
performs radon mitigation unless such contractor provides evidence, 757
satisfactory to the commissioner, that the contractor is certified as a 758
radon mitigator by the National Radon Safety Board or the National 759
Environmental Health Association. No certificate shall be given to any 760
person who holds himself or herself out to be a contractor that performs 761
removal or replacement of any residential underground heating oil 762
storage tank system unless such contractor provides evidence, 763
satisfactory to the commissioner, that the contractor (1) has completed a 764
hazardous material training program approved by the Department of 765
Energy and Environmental Protection, and (2) has presented evidence 766 Raised Bill No. 182
LCO No. 1678 25 of 26
of liability insurance coverage of one million dollars. 767
(b) No contractor shall employ any salesman to procure business 768
from an owner unless the salesman is registered under this chapter. 769
(c) No individual shall act as a home improvement salesman for an 770
unregistered contractor. 771
(d) On and after July 1, 2008, a home improvement contractor shall 772
not perform gas hearth product work, as defined in subdivision (22) of 773
section 20-330, unless such home improvement contractor holds a 774
limited contractor or journeyman gas hearth installer license pursuant 775
to section 20-334f. 776
(e) A retail establishment shall apply for a certificate of registration if 777
it employs or otherwise compensates one or more salespersons whose 778
sales are made pursuant to negotiations initiated by prospective buyers 779
at or with a retail establishment that operates from a fixed location 780
where goods or services are offered for sale. Such application for a 781
certificate of registration shall include the name, residence address, 782
business address, business telephone number and such other 783
information as the commissioner may require, for each such 784
salesperson. The application fee shall be one hundred twenty dollars per 785
salesperson listed on the application. 786
Sec. 14. (NEW) (Effective from passage) While the holder of a limited 787
license issued pursuant to chapter 393 of the general statutes is enrolled 788
in an unlimited license apprenticeship program, such limited license 789
holder shall be considered a journeyman or contractor for purposes of 790
section 20-332b of the general statutes and any regulation of Connecticut 791
state agencies adopted pursuant to said section. 792
Sec. 15. Sections 20-417i and 20-432 of the general statutes are 793
repealed. (Effective March 31, 2025) 794
This act shall take effect as follows and shall amend the following
sections:
Raised Bill No. 182
LCO No. 1678 26 of 26
Section 1 July 1, 2021 20-417b
Sec. 2 July 1, 2021 New section
Sec. 3 July 1, 2021 20-417i
Sec. 4 July 1, 2021 20-419
Sec. 5 July 1, 2021 20-420a
Sec. 6 July 1, 2021 20-421(a)
Sec. 7 July 1, 2021 20-427(e)
Sec. 8 July 1, 2021 20-432
Sec. 9 March 31, 2025 20-417c
Sec. 10 March 31, 2025 20-417j
Sec. 11 March 31, 2025 20-426
Sec. 12 March 31, 2025 21a-11
Sec. 13 July 1, 2021 20-420
Sec. 14 from passage New section
Sec. 15 March 31, 2025 Repealer section
Statement of Purpose:
To protect consumers by effectively regulating new home construction
contractors and home improvement contractors.
[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
underlined.]