Connecticut 2020 Regular Session

Connecticut Senate Bill SB00182 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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2	2
3	3	LCO No. 1678 1 of 26
4	4
5	5	General Assembly Raised Bill No. 182
6	6	February Session, 2020
7	7	LCO No. 1678
8	8
9	9
10	10	Referred to Committee on GENERAL LAW
11	11
12	12
13	13	Introduced by:
14	14	(GL)
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16	16
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19	19	AN ACT CONCERNING NE W HOME CONSTRUCTION
20	20	CONTRACTORS AND HOME IMPROVEMENT CONTRACTORS.
21	21	Be it enacted by the Senate and House of Representatives in General
22	22	Assembly convened:
23	23
24	24	Section 1. Section 20-417b of the general statutes is repealed and the 1
25	25	following is substituted in lieu thereof (Effective July 1, 2021): 2
26	26	(a) No person shall engage in the business of new home construction 3
27	27	or hold himself or herself out as a new home construction contractor 4
28	28	unless such person has been issued a certificate of registration by the 5
29	29	commissioner in accordance with the provisions of sections 20-417a to 6
30	30	20-417j, inclusive, as amended by this act. No new home construction 7
31	31	contractor shall be relieved of responsibility for the conduct and acts of 8
32	32	its agents, employees or officers by reason of such new home 9
33	33	construction contractor's compliance with the provisions of sections 20-10
34	34	417a to 20-417j, inclusive, as amended by this act. 11
35	35	(b) Any person seeking a certificate of registration shall apply to the 12
36	36	commissioner, [in writing] online, on a form provided by the 13
37	37	commissioner. The application shall include (1) the applicant's name, 14
38	38	business street address and business telephone number, (2) the identity 15 Raised Bill No. 182
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40	40
41	41
42	42	LCO No. 1678 2 of 26
43	43
44	44	of the insurer that provides the applicant with insurance coverage for 16
45	45	liability, (3) if such applicant is required by any provision of the general 17
46	46	statutes to have workers' compensation coverage, the identity of the 18
47	47	insurer that provides the applicant with such workers' compensation 19
48	48	coverage, [and] (4) if such applicant is required by any provision of the 20
49	49	general statutes to have an agent for service of process, the name and 21
50	50	address of such agent, and (5) proof of general liability insurance 22
51	51	coverage in an amount not less than six hundred thousand dollars, 23
52	52	demonstrated by providing the policy number and business name of the 24
53	53	insurance provider. Each such application shall be accompanied by a fee 25
54	54	of [two] one hundred [forty] twenty dollars, except that no such 26
55	55	application fee shall be required if such person has paid the registration 27
56	56	fee required under section 20-421, as amended by this act, during any 28
57	57	year in which such person's registration as a new home construction 29
58	58	contractor would be valid. 30
59	59	(c) Certificates issued to new home construction contractors shall not 31
60	60	be transferable or assignable, except when the holder of a certificate, 32
61	61	who is engaged in the business, changes the name or form of such 33
62	62	business. 34
63	63	(d) All certificates issued under the provisions of sections 20-417a to 35
64	64	20-417j, inclusive, as amended by this act, shall expire [biennially] 36
65	65	annually. The fee for renewal of a certificate shall be the same as the fee 37
66	66	charged for an original application, except that no renewal fee is due if 38
67	67	a person seeking renewal of a certificate has paid the registration fee 39
68	68	under section 20-427, as amended by this act, during any year in which 40
69	69	such person's registration as a new home construction contractor would 41
70	70	be valid. 42
71	71	(e) All certificates issued under the provisions of this chapter shall 43
72	72	expire [biennially] annually on the thirty-first day of March. [and may 44
73	73	be renewed by the applicant not later than six months after the 45
74	74	expiration date of such certificate.] The fee for renewal of a certificate 46
75	75	shall be the same as charged for the original application. [but shall be 47
76	76	charged on a pro rata basis, based upon the application date for such 48 Raised Bill No. 182
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78	78
79	79
80	80	LCO No. 1678 3 of 26
81	81
82	82	renewal.] 49
83	83	(f) Failure to receive a notice of expiration or a renewal application 50
84	84	shall not exempt a new home construction contractor from the 51
85	85	obligation to renew. 52
86	86	(g) The holder of a certificate of registration issued by the 53
87	87	commissioner in accordance with the provisions of sections 20-417a to 54
88	88	20-417j, inclusive, as amended by this act, may opt to engage in home 55
89	89	improvement, as defined in section 20-419, as amended by this act. If a 56
90	90	new home construction contractor does opt to engage in such home 57
91	91	improvement, such new home construction contractor shall first notify 58
92	92	the commissioner in writing and shall pay to the Department of 59
93	93	Consumer Protection all the Home Improvement Guaranty Fund fees 60
94	94	due pursuant to section 20-432, as amended by this act. 61
95	95	Sec. 2. (NEW) (Effective July 1, 2021) (a) (1) A contract, as defined in 62
96	96	section 20-417a of the general statutes, shall not be valid or enforceable 63
97	97	against a consumer unless it: (A) Is in writing, (B) is signed by the new 64
98	98	home construction contractor and the consumer, (C) contains the entire 65
99	99	agreement between the new home construction contractor and the 66
100	100	consumer, (D) contains the date of the transaction, (E) contains the name 67
101	101	and address of the new home construction contractor and the 68
102	102	contractor's registration number, (F) contains a starting date and 69
103	103	completion date, (G) is entered into by a registered new home 70
104	104	construction contractor, and (H) includes a provision disclosing each 71
105	105	corporation, limited liability company, partnership, sole proprietorship 72
106	106	or other legal entity, which is or has been a new home construction 73
107	107	contractor pursuant to the provisions of chapter 399a of the general 74
108	108	statutes, in which the owner or owners of the new home construction 75
109	109	contractor are or have been a shareholder, member, partner or owner 76
110	110	during the previous five years. 77
111	111	(2) Each change in the terms and conditions of a contract, as defined 78
112	112	in section 20-417a of the general statutes, shall be in writing and shall be 79
113	113	signed by the new home construction contractor and the consumer, 80 Raised Bill No. 182
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116	116
117	117	LCO No. 1678 4 of 26
118	118
119	119	except that the commissioner may, by regulation, dispense with the 81
120	120	necessity for complying with the provisions of this subdivision. 82
121	121	(b) The new home construction contractor shall provide and deliver 83
122	122	to the consumer, without charge, a completed copy of the new home 84
123	123	construction contract at the time such contract is executed. 85
124	124	(c) The commissioner may, by regulation, require the inclusion of 86
125	125	additional contractual provisions for contracts, as defined in section 20-87
126	126	417a of the general statutes. 88
127	127	(d) Each contract, as defined in section 20-417a of the general statutes, 89
128	128	in which the consumer agrees to repay the new home construction 90
129	129	contractor an amount loaned or advanced to the consumer by the 91
130	130	contractor for the purposes of paying for the goods and services or real 92
131	131	estate provided in such contract, or which contains a finance charge, (1) 93
132	132	shall set forth the information required to be disclosed pursuant to the 94
133	133	Truth-in-Lending Act, sections 36a-675 to 36a-685, inclusive, of the 95
134	134	general statutes, (2) shall allow the consumer to pay off in advance the 96
135	135	full amount due and obtain a partial refund of any unearned finance 97
136	136	charge, and (3) may contain a finance charge set at a rate of not more 98
137	137	than the rate allowed for loans pursuant to section 37-4 of the general 99
138	138	statutes. As used in this subsection, "finance charge" means the amount 100
139	139	in excess of the cash price for goods, services and real estate under the 101
140	140	new home construction contract to be paid by the consumer for the 102
141	141	privilege of paying the contract price in installments over a period of 103
142	142	time. 104
143	143	(e) Nothing in this section shall preclude a new home construction 105
144	144	contractor who has complied with subparagraphs (A), (B), (F) and (G) 106
145	145	of subdivision (1) of subsection (a) of this section from the recovery of 107
146	146	payment for work performed based on the reasonable value of services 108
147	147	which were requested by the consumer, provided the court determines 109
148	148	that it would be inequitable to deny such recovery. 110
149	149	Sec. 3. Section 20-417i of the general statutes is repealed and the 111
150	150	following is substituted in lieu thereof (Effective July 1, 2021): 112 Raised Bill No. 182
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153	153
154	154	LCO No. 1678 5 of 26
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156	156	(a) The commissioner shall establish and maintain the New Home 113
157	157	Construction Guaranty Fund. 114
158	158	(b) Each person who receives a certificate pursuant to sections 20-115
159	159	417a to 20-417j, inclusive, as amended by this act, shall pay a fee of four 116
160	160	hundred eighty dollars biennially to the fund. Such fee shall be payable 117
161	161	with the fee for an application for a certificate or renewal of a certificate. 118
162	162	(c) (1) For fiscal years commencing on or after July 1, 2003, payments 119
163	163	received under subsection (b) of this section shall be credited to the New 120
164	164	Home Construction Guaranty Fund until the balance in the fund equals 121
165	165	seven hundred fifty thousand dollars. Annually, if the balance in the 122
166	166	fund exceeds seven hundred fifty thousand dollars, the first three 123
167	167	hundred thousand dollars of the excess shall be deposited in the 124
168	168	consumer protection enforcement account established in section 21a-8a. 125
169	169	On June 1, 2004, and each June first thereafter, if the balance in the fund 126
170	170	exceeds seven hundred fifty thousand dollars, the excess shall be 127
171	171	deposited in the General Fund. 128
172	172	(2) Any money in the New Home Construction Guaranty Fund may 129
173	173	be invested or reinvested in the same manner as funds of the state 130
174	174	employees retirement system and the interest arising from such 131
175	175	investments shall be credited to the fund. 132
176	176	(d) Beginning October 1, 2000, whenever a consumer obtains a court 133
177	177	judgment, order or decree against any new home construction 134
178	178	contractor holding a certificate or who has held a certificate under 135
179	179	sections 20-417a to 20-417j, inclusive, as amended by this act, within [the 136
180	180	past] two years of the date of entering into the contract with the 137
181	181	consumer, for loss or damages sustained by reason of any violation of 138
182	182	the provisions of sections 20-417a to 20-417j, inclusive, as amended by 139
183	183	this act, by a person holding a certificate under said sections, such 140
184	184	consumer may, upon the final determination of, or expiration of time for 141
185	185	taking, an appeal in connection with any such judgment, order or 142
186	186	decree, apply to the commissioner for an order directing payment out 143
187	187	of the New Home Construction Guaranty Fund of the amount, not 144 Raised Bill No. 182
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189	189
190	190
191	191	LCO No. 1678 6 of 26
192	192
193	193	exceeding thirty thousand dollars, unpaid upon the judgment, order or 145
194	194	decree for actual damages and costs taxed by the court against such 146
195	195	contractor, exclusive of punitive damages. The application shall be 147
196	196	made on forms provided by the commissioner and shall be 148
197	197	accompanied by a copy of the court judgment, order or decree obtained 149
198	198	against the new home construction contractor together with a [notarized 150
199	199	affidavit,] statement signed and sworn to by the consumer, affirming 151
200	200	that the consumer has: (1) Complied with all the requirements of this 152
201	201	subsection; (2) obtained a judgment, order or decree stating the amount 153
202	202	of the judgment, order or decree and the amount owing on the 154
203	203	judgment, order or decree at the date of application; and (3) made a 155
204	204	good faith effort to satisfy any such judgment, order or decree in 156
205	205	accordance with the provisions of chapter 906 which effort may include 157
206	206	causing to be issued a writ of execution upon such judgment, order or 158
207	207	decree but the officer executing the same has made a return showing 159
208	208	that no bank accounts or personal property of such contractor liable to 160
209	209	be levied upon in satisfaction of the judgment, order or decree could be 161
210	210	found, or that the amount realized on the sale of them or of such of them 162
211	211	as were found, under the execution, was insufficient to satisfy the actual 163
212	212	damage portion of the judgment, order or decree or stating the amount 164
213	213	realized and the balance remaining due on the judgment, order or 165
214	214	decree after application on the judgment, order or decree of the amount 166
215	215	realized, except that the requirements of this subdivision shall not apply 167
216	216	to a judgment, order or decree obtained by the consumer in small claims 168
217	217	court. A true and attested copy of such executing officer's return, when 169
218	218	required, shall be attached to such application. [and affidavit.] 170
219	219	Whenever the consumer satisfies the commissioner or the 171
220	220	commissioner's designee that it is not practicable to comply with the 172
221	221	requirements of subdivision (3) of this subsection and that the consumer 173
222	222	has taken all reasonable steps to collect the amount of the judgment, 174
223	223	order or decree or the unsatisfied part of the judgment, order or decree 175
224	224	and has been unable to collect the same, the commissioner or the 176
225	225	commissioner's designee may, in the commissioner's or the 177
226	226	commissioner's designee's discretion, dispense with the necessity for 178
227	227	complying with such requirement. No application for an order directing 179 Raised Bill No. 182
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229	229
230	230
231	231	LCO No. 1678 7 of 26
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233	233	payment out of the fund shall be made later than two years from the 180
234	234	final determination of, or expiration of time for taking, an appeal of such 181
235	235	court judgment, order or decree and no such application shall be for an 182
236	236	amount in excess of thirty thousand dollars. 183
237	237	(e) Upon receipt of such application together with such copy of the 184
238	238	court judgment, order or decree, [notarized affidavit] statement and, 185
239	239	except as otherwise provided in subsection (d) of this section, true and 186
240	240	attested copy of the executing officer's return, the commissioner or the 187
241	241	commissioner's designee shall inspect such documents for their veracity 188
242	242	and upon a determination that such documents are complete and 189
243	243	authentic and that the consumer has not been paid, the commissioner 190
244	244	shall order payment out of the New Home Construction Guaranty Fund 191
245	245	of the amount not exceeding thirty thousand dollars unpaid upon the 192
246	246	judgment, order or decree for actual damages and costs taxed by the 193
247	247	court against the contractor, exclusive of punitive damages. 194
248	248	(f) Beginning October 1, 2000, whenever a consumer is awarded an 195
249	249	order of restitution against any new home construction contractor for 196
250	250	loss or damages sustained as a result of any violation of the provisions 197
251	251	of sections 20-417a to 20-417j, inclusive, as amended by this act, by a 198
252	252	person holding a certificate or who has held a certificate under said 199
253	253	sections within [the past] two years of the date of entering into the 200
254	254	contract with the consumer, in (1) a proceeding brought by the 201
255	255	commissioner pursuant to subsection (h) of this section or subsection (d) 202
256	256	of section 42-110d, (2) a proceeding brought by the Attorney General 203
257	257	pursuant to subsection (a) of section 42-110m or subsection (d) of section 204
258	258	42-110d, or (3) a criminal proceeding pursuant to section 20-417e, such 205
259	259	consumer may, upon the final determination of, or expiration of time for 206
260	260	taking, an appeal in connection with any such order of restitution, apply 207
261	261	to the commissioner for an order directing payment out of the New 208
262	262	Home Construction Guaranty Fund of the amount not exceeding thirty 209
263	263	thousand dollars unpaid upon the order of resti tution. The 210
264	264	commissioner may issue such order upon a determination that the 211
265	265	consumer has not been paid. 212 Raised Bill No. 182
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268	268
269	269	LCO No. 1678 8 of 26
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271	271	(g) Before the commissioner may issue any order directing payment 213
272	272	out of the New Home Construction Guaranty Fund to a consumer 214
273	273	pursuant to subsection (e) or (f) of this section, the commissioner shall 215
274	274	first notify the new home construction contractor of the consumer's 216
275	275	application for an order directing payment out of the fund and of the 217
276	276	new home construction contractor's right to a hearing to contest the 218
277	277	disbursement in the event that such contractor has already paid the 219
278	278	consumer. Such notice shall be given to the new home construction 220
279	279	contractor not later than fifteen days after receipt by the commissioner 221
280	280	of the consumer's application for an order directing payment out of the 222
281	281	fund. If the new home construction contractor requests a hearing, in 223
282	282	writing, by certified mail not later than fifteen days after receiving the 224
283	283	notice from the commissioner, the commissioner shall grant such 225
284	284	request and shall conduct a hearing in accordance with the provisions 226
285	285	of chapter 54. If the commissioner does not receive a written request for 227
286	286	a hearing by certified mail from the new home construction contractor 228
287	287	on or before the fifteenth day from the contractor's receipt of such notice, 229
288	288	the commissioner shall conclude that the consumer has not been paid, 230
289	289	and the commissioner shall issue an order directing payment out of the 231
290	290	fund for the amount not exceeding thirty thousand dollars unpaid upon 232
291	291	the judgment, order or decree for actual damages and costs taxed by the 233
292	292	court against the new home construction contractor, exclusive of 234
293	293	punitive damages, or for the amount not exceeding thirty thousand 235
294	294	dollars unpaid upon the order of restitution. 236
295	295	(h) The commissioner or the commissioner's designee may proceed 237
296	296	against any new home construction contractor holding a certificate or 238
297	297	who has held a certificate under sections 20-417a to 20-417j, inclusive, as 239
298	298	amended by this act, within [the past] two years of the effective date of 240
299	299	entering into the contract with the consumer, for an order of restitution 241
300	300	arising from loss or damages sustained by any consumer as a result of 242
301	301	any violation of the provisions of said sections 20-417a to 20-417j, 243
302	302	inclusive, as amended by this act. Any such proceeding shall be held in 244
303	303	accordance with the provisions of chapter 54. In the course of such 245
304	304	proceeding, the commissioner or the commissioner's designee shall 246 Raised Bill No. 182
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306	306
307	307
308	308	LCO No. 1678 9 of 26
309	309
310	310	decide whether to (1) exercise the powers specified in section 20-417c, 247
311	311	as amended by this act, (2) order restitution arising from loss or 248
312	312	damages sustained by any consumer as a result of any violation of the 249
313	313	provisions of sections 20-417a to 20-417j, inclusive, as amended by this 250
314	314	act, and (3) order payment out of the New Home Construction Guaranty 251
315	315	Fund. Notwithstanding the provisions of chapter 54, the decision of the 252
316	316	commissioner or the commissioner's designee shall be final with respect 253
317	317	to any proceeding to order payment out of the fund and the 254
318	318	commissioner and the commissioner's designee shall not be subject to 255
319	319	the requirements of chapter 54 as such requirements relate to an appeal 256
320	320	from any such decision. The commissioner or the commissioner's 257
321	321	designee may hear complaints of all consumers submitting claims 258
322	322	against a single new home construction contractor in one proceeding. 259
323	323	(i) No application for an order directing payment out of the New 260
324	324	Home Construction Guaranty Fund shall be made later than two years 261
325	325	from the final determination of, or expiration of time for, an appeal in 262
326	326	connection with any judgment, order or decree of restitution, and no 263
327	327	such application shall be for an amount in excess of thirty thousand 264
328	328	dollars. 265
329	329	(j) In order to preserve the integrity of the New Home Construction 266
330	330	Guaranty Fund, the commissioner, in the commissioner's sole 267
331	331	discretion, may order payment out of the fund of an amount less than 268
332	332	the actual loss or damages incurred by the consumer or less than the 269
333	333	order of restitution awarded by the commissioner or the Superior Court. 270
334	334	In no event shall any payment out of the fund be in excess of thirty 271
335	335	thousand dollars for any single claim by a consumer. 272
336	336	(k) If the money deposited in the New Home Construction Guaranty 273
337	337	Fund is insufficient to satisfy any duly authorized claim or portion of a 274
338	338	claim, the commissioner shall, when sufficient money has been 275
339	339	deposited in the fund, satisfy such unpaid claims or portions of claims 276
340	340	not exceeding thirty thousand dollars, in the order that such claims or 277
341	341	portions of claims were originally determined. 278 Raised Bill No. 182
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345	345	LCO No. 1678 10 of 26
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347	347	(l) Whenever the commissioner has caused any sum to be paid from 279
348	348	the New Home Construction Guaranty Fund to a consumer, the 280
349	349	commissioner shall be subrogated to all of the rights of the consumer up 281
350	350	to the amount paid plus reasonable interest, and prior to receipt of any 282
351	351	payment from the fund, the consumer shall assign all of the consumer's 283
352	352	right, title and interest in the claim up to such amount to the 284
353	353	commissioner, and any amount and interest recovered by the 285
354	354	commissioner on the claim shall be deposited in the fund. 286
355	355	(m) If the commissioner orders the payment of any amount as a result 287
356	356	of a claim against a new home construction contractor, the 288
357	357	commissioner shall determine if such contractor is possessed of assets 289
358	358	liable to be sold or applied in satisfaction of the claim on the New Home 290
359	359	Construction Guaranty Fund. If the commissioner discovers any such 291
360	360	assets, the commissioner may request that the Attorney General take 292
361	361	any action necessary for the reimbursement of the fund. 293
362	362	(n) If the commissioner orders the payment of an amount as a result 294
363	363	of a claim against a new home c onstruction contractor, the 295
364	364	commissioner may, after notice and hearing in accordance with the 296
365	365	provisions of chapter 54, revoke the certificate of such contractor and 297
366	366	such contractor shall not be eligible to receive a new or renewed 298
367	367	certificate until such contractor has repaid such amount in full, plus 299
368	368	interest from the time such payment is made from the New Home 300
369	369	Construction Guaranty Fund, at a rate to be in accordance with section 301
370	370	37-3b, except that the commissioner may, in the commissioner's sole 302
371	371	discretion, permit a new home construction contractor to receive a new 303
372	372	or renewed certificate after such contractor has entered into an 304
373	373	agreement with the commissioner whereby such contractor agrees to 305
374	374	repay the fund in full in the form of periodic payments over a set period 306
375	375	of time. Any such agreement shall include a provision providing for the 307
376	376	summary suspension of any and all certificates held by the new home 308
377	377	construction contractor if payment is not made in accordance with the 309
378	378	terms of the agreement. 310
379	379	Sec. 4. Section 20-419 of the general statutes is repealed and the 311 Raised Bill No. 182
380	380
381	381
382	382
383	383	LCO No. 1678 11 of 26
384	384
385	385	following is substituted in lieu thereof (Effective July 1, 2021): 312
386	386	As used in this chapter, unless the context otherwise requires: 313
387	387	(1) "Certificate" means a certificate of registration issued under 314
388	388	section 20-422. 315
389	389	(2) "Commissioner" means the Commissioner of Consumer 316
390	390	Protection or any person designated by the commissioner to administer 317
391	391	and enforce this chapter. 318
392	392	(3) "Contractor" means any person who owns and operates a home 319
393	393	improvement business or who undertakes, offers to undertake or agrees 320
394	394	to perform any home improvement. "Contractor" does not include a 321
395	395	person for whom the total price of all of his home improvement 322
396	396	contracts with all of his customers does not exceed one thousand dollars 323
397	397	during any period of twelve consecutive months. 324
398	398	(4) "Home improvement" includes, but is not limited to, the repair, 325
399	399	replacement, remodeling, alteration, conversion, modernization, 326
400	400	improvement, rehabilitation or sandblasting of, or addition to any land 327
401	401	or building or that portion thereof which is used or designed to be used 328
402	402	as a private residence, dwelling place or residential rental property, or 329
403	403	the construction, replacement, installation or improvement of alarm 330
404	404	systems not requiring electrical work as defined by section 20-330, 331
405	405	driveways, swimming pools, porches, garages, roofs, siding, insulation, 332
406	406	sunrooms, flooring, patios, landscaping, fences, doors and windows, 333
407	407	waterproofing, water, fire or storm restoration or mold remediation in 334
408	408	connection with such land or building or that portion thereof which is 335
409	409	used or designed to be used as a private residence, dwelling place or 336
410	410	residential rental property or the removal or replacement of a residential 337
411	411	underground heating oil storage tank system, in which the total price 338
412	412	for all work agreed upon between the contractor and owner or proposed 339
413	413	or offered by the contractor exceeds two hundred dollars. "Home 340
414	414	improvement" does not include: (A) The construction of a new home; 341
415	415	(B) the sale of goods by a seller who neither arranges to perform nor 342
416	416	performs, directly or indirectly, any work or labor in connection with 343 Raised Bill No. 182
417	417
418	418
419	419
420	420	LCO No. 1678 12 of 26
421	421
422	422	the installation or application of the goods or materials; (C) the sale of 344
423	423	goods or services furnished for commercial or business use or for resale, 345
424	424	provided commercial or business use does not include use as residential 346
425	425	rental property; (D) the sale of appliances, such as stoves, refrigerators, 347
426	426	freezers, room air conditioners and others which are designed for and 348
427	427	are easily removable from the premises without material alteration 349
428	428	thereof; [and] (E) tree cutting or the grinding of tree stumps or shrubs; 350
429	429	and (F) any work performed without compensation by the owner on his 351
430	430	own private residence or residential rental property. 352
431	431	(5) "Home improvement contract" means an agreement between a 353
432	432	contractor and an owner for the performance of a home improvement. 354
433	433	(6) "Owner" means a person who owns or resides in a private 355
434	434	residence and includes any agent thereof, including, but not limited to, 356
435	435	a condominium association. An owner of a private residence shall not 357
436	436	be required to reside in such residence to be deemed an owner under 358
437	437	this subdivision. 359
438	438	(7) "Person" means an individual, partnership, limited liability 360
439	439	company or corporation. 361
440	440	(8) "Private residence" means a single family dwelling, a multifamily 362
441	441	dwelling consisting of not more than six units, or a unit, common 363
442	442	element or limited common element in a condominium, as defined in 364
443	443	section 47-68a, or in a common interest community, as defined in section 365
444	444	47-202, or any number of condominium units for which a condominium 366
445	445	association acts as an agent for such unit owners. 367
446	446	(9) "Salesman" means any individual who (A) negotiates or offers to 368
447	447	negotiate a home improvement contract with an owner or, (B) solicits or 369
448	448	otherwise endeavors to procure by any means whatsoever, directly or 370
449	449	indirectly, a home improvement contract from an owner on behalf of a 371
450	450	contractor. 372
451	451	(10) "Residential rental property" means a single family dwelling, a 373
452	452	multifamily dwelling consisting of not more than six units, or a unit, 374 Raised Bill No. 182
453	453
454	454
455	455
456	456	LCO No. 1678 13 of 26
457	457
458	458	common element or limited common element in a condominium, as 375
459	459	defined in section 47-68a, or in a common interest community, as 376
460	460	defined in section 47-202, which is not owner-occupied. 377
461	461	(11) "Residential underground heating oil storage tank system" 378
462	462	means an underground storage tank system used with or without 379
463	463	ancillary components in connection with real property composed of 380
464	464	four or less residential units. 381
465	465	(12) "Underground storage tank system" means an underground tank 382
466	466	or combination of tanks, with any underground pipes or ancillary 383
467	467	equipment or containment systems connected to such tank or tanks, 384
468	468	used to contain an accumulation of petroleum, which volume is ten per 385
469	469	cent or more beneath the surface of the ground. 386
470	470	Sec. 5. Section 20-420a of the general statutes is repealed and the 387
471	471	following is substituted in lieu thereof (Effective July 1, 2021): 388
472	472	(a) No corporation shall perform or offer to perform home 389
473	473	improvements in this state unless such corporation has been issued a 390
474	474	certificate of registration by the commissioner. No such corporation 391
475	475	shall be relieved of responsibility for the conduct and acts of its agents, 392
476	476	employees or officers by reason of its compliance with the provisions of 393
477	477	this section, nor shall any individual contractor be relieved of 394
478	478	responsibility for home improvements performed by reason of his 395
479	479	employment or relationship with such corporation. 396
480	480	(b) A qualifying corporation desiring a certificate of registration shall 397
481	481	apply to the commissioner, [in writing] online, on a form provided by 398
482	482	the commissioner. The application shall (1) state the name and address 399
483	483	of such corporation, the city or town and the street and number where 400
484	484	such corporation is to maintain its principal place of business in this 401
485	485	state [,] and the names and addresses of officers; [,] and (2) contain a 402
486	486	statement that one or more individuals who shall direct, supervise or 403
487	487	perform home improvements for such corporation are registered home 404
488	488	improvement contractors, a statement that the applicant has obtained 405
489	489	general liability insurance coverage in an amount not less than six 406 Raised Bill No. 182
490	490
491	491
492	492
493	493	LCO No. 1678 14 of 26
494	494
495	495	hundred thousand dollars, demonstrated by providing the policy 407
496	496	number and business name of the insurance provider and such other 408
497	497	information as the commissioner may require. 409
498	498	(c) Any certificate issued by the commissioner pursuant to this 410
499	499	section may be revoked, [or] suspended, or have conditions placed upon 411
500	500	the holder of the certificate by the commissioner after notice and hearing 412
501	501	in accordance with the provisions of chapter 54 concerning contested 413
502	502	cases, if it is shown that the holder of such certificate has not conformed 414
503	503	to the requirements of this chapter, that the certificate was obtained 415
504	504	through fraud or misrepresentation or that the contractor of record 416
505	505	employed by or acting on behalf of such corporation has had his 417
506	506	certificate of registration suspended or revoked by the commissioner. 418
507	507	The commissioner may refuse to issue or renew a certificate if any facts 419
508	508	exist which would entitle the commissioner to suspend or revoke an 420
509	509	existing certificate. 421
510	510	(d) Each such corporation shall file with the commissioner upon 422
511	511	application or renewal thereof a designation of an individual or 423
512	512	individuals registered to perform home improvements in this state who 424
513	513	shall direct or supervise the performance of home improvements by 425
514	514	such corporation in this state. Such corporation shall notify the 426
515	515	commissioner of any change in such designation within thirty days after 427
516	516	such change becomes effective. 428
517	517	(e) Each such corporation shall file with the commissioner upon 429
518	518	application or renewal thereof a certificate of good standing issued by 430
519	519	the office of the Secretary of the State. Such corporation shall notify the 431
520	520	commissioner of any change in corporate good standing within thirty 432
521	521	days after such change becomes effective. 433
522	522	Sec. 6. Subsection (a) of section 20-421 of the general statutes is 434
523	523	repealed and the following is substituted in lieu thereof (Effective July 1, 435
524	524	2021): 436
525	525	(a) Any person seeking a certificate of registration shall apply to the 437
526	526	commissioner [in writing] online, on a form provided by the 438 Raised Bill No. 182
527	527
528	528
529	529
530	530	LCO No. 1678 15 of 26
531	531
532	532	commissioner. The application shall include the applicant's name, 439
533	533	residence address, business address, business telephone number, proof 440
534	534	that the applicant has obtained general liability insurance coverage in 441
535	535	an amount not less than six hundred thousand dollars, demonstrated by 442
536	536	providing the policy number and business name of the insurance 443
537	537	provider, and such other information as the commissioner may require. 444
538	538	Sec. 7. Subsection (e) of section 20-427 of the general statutes is 445
539	539	repealed and the following is substituted in lieu thereof (Effective July 1, 446
540	540	2021): 447
541	541	(e) Certificates issued to home improvement contractors or salesmen 448
542	542	shall not be transferable or assignable, except when the holder of the 449
543	543	certificate changes only the name or type of business entity of such 450
544	544	business. 451
545	545	Sec. 8. Section 20-432 of the general statutes is repealed and the 452
546	546	following is substituted in lieu thereof (Effective July 1, 2021): 453
547	547	(a) The commissioner shall establish and maintain the Home 454
548	548	Improvement Guaranty Fund. 455
549	549	(b) Each salesman who receives a certificate pursuant to this chapter 456
550	550	shall pay a fee of forty dollars annually. Each contractor who receives a 457
551	551	certificate pursuant to this chapter shall pay a fee of one hundred dollars 458
552	552	annually to the guaranty fund. Such fee shall be payable with the fee for 459
553	553	an application for a certificate or renewal thereof. The annual fee for a 460
554	554	contractor who receives a certificate of registration as a home 461
555	555	improvement contractor acting solely as the contractor of record for a 462
556	556	corporation shall be waived, provided the contractor of record shall use 463
557	557	such registration for the sole purpose of directing, supervising or 464
558	558	performing home improvements for such corporation. 465
559	559	(c) Payments received under subsection (b) of this section shall be 466
560	560	credited to the guaranty fund until the balance in such fund equals 467
561	561	seven hundred fifty thousand dollars. Annually, if the balance in the 468
562	562	fund exceeds seven hundred fifty thousand dollars, the first four 469 Raised Bill No. 182
563	563
564	564
565	565
566	566	LCO No. 1678 16 of 26
567	567
568	568	hundred thousand dollars of the excess shall be deposited into the 470
569	569	consumer protection enforcement account established in section 21a-8a. 471
570	570	Any excess thereafter shall be deposited in the General Fund. Any 472
571	571	money in the guaranty fund may be invested or reinvested in the same 473
572	572	manner as funds of the state employees retirement system, and the 474
573	573	interest arising from such investments shall be credited to the guaranty 475
574	574	fund. 476
575	575	(d) Whenever an owner obtains a court judgment, order or decree 477
576	576	against any contractor holding a certificate or who has held a certificate 478
577	577	under this chapter within [the past] two years of the effective date of 479
578	578	entering into the contract with the owner, for loss or damages sustained 480
579	579	by reason of performance of or offering to perform a home improvement 481
580	580	within this state by a contractor holding a certificate under this chapter, 482
581	581	such owner may, upon the final determination of, or expiration of time 483
582	582	for, taking an appeal in connection with any such judgment, order or 484
583	583	decree, apply to the commissioner for an order directing payment out 485
584	584	of said guaranty fund of the amount unpaid upon the judgment, order 486
585	585	or decree, for actual damages and costs taxed by the court against the 487
586	586	contractor, exclusive of punitive damages. The application shall be 488
587	587	made on forms provided by the commissioner and shall be 489
588	588	accompanied by a copy of the court judgment, order or decree obtained 490
589	589	against the contractor. [together with a notarized affidavit, signed and 491
590	590	sworn to by the owner, affirming that: (1) He or she has complied with 492
591	591	all the requirements of this subsection; (2) he or she has obtained a 493
592	592	judgment, order or decree, stating the amount thereof and the amount 494
593	593	owing thereon at the date of application; and (3) he or she has caused to 495
594	594	be issued a writ of execution upon said judgment, order or decree and 496
595	595	the officer executing the same has made a return showing that no bank 497
596	596	accounts or personal property of the contractor liable to be levied upon 498
597	597	in satisfaction of the judgment, order or decree could be found, or that 499
598	598	the amount realized on the sale of them or of such of them as were 500
599	599	found, under the execution, was insufficient to satisfy the actual damage 501
600	600	portion of the judgment, order or decree or stating the amount realized 502
601	601	and the balance remaining due on the judgment, order or decree after 503 Raised Bill No. 182
602	602
603	603
604	604
605	605	LCO No. 1678 17 of 26
606	606
607	607	application thereon of the amount realized, except that the requirements 504
608	608	of this subdivision shall not apply to a judgment, order or decree 505
609	609	obtained by the owner in small claims court.] A true and attested copy 506
610	610	of said executing officer's return, when required, shall be attached to 507
611	611	such application. [and affidavit.] No application for an order directing 508
612	612	payment out of the guaranty fund shall be made later than two years 509
613	613	after the final determination of, or expiration of time for, taking an 510
614	614	appeal of said court judgment, order or decree. 511
615	615	(e) Upon receipt of said application together with said copy of the 512
616	616	court judgment, order or decree, [notarized affidavit] and true and 513
617	617	attested copy of the executing officer's return, the commissioner or his 514
618	618	designee shall inspect such documents for their veracity and upon a 515
619	619	determination that such documents are complete and authentic, and a 516
620	620	determination that the owner has not been paid, the commissioner shall 517
621	621	order payment out of the guaranty fund of the amount unpaid upon the 518
622	622	judgment, order or decree for actual damages and costs taxed by the 519
623	623	court against the contractor, exclusive of punitive damages. 520
624	624	(f) Whenever an owner is awarded an order of restitution against any 521
625	625	contractor for loss or damages sustained by reason of performance of or 522
626	626	offering to perform a home improvement in this state by a contractor 523
627	627	holding a certificate or who has held a certificate under this chapter 524
628	628	within [the past] two years of the date of entering into the contract with 525
629	629	the owner, in a proceeding brought by the commissioner pursuant to 526
630	630	this section or subsection (d) of section 42-110d, or in a proceeding 527
631	631	brought by the Attorney General pursuant to subsection (a) of section 528
632	632	42-110m or subsection (d) of section 42-110d, or a criminal proceeding 529
633	633	pursuant to section 20-427, as amended by this act, such owner may, 530
634	634	upon the final determination of, or expiration of time for, taking an 531
635	635	appeal in connection with any such order of restitution, apply to the 532
636	636	commissioner for an order directing payment out of said guaranty fund 533
637	637	of the amount unpaid upon the order of restitution. The commissioner 534
638	638	may issue said order upon a determination that the owner has not been 535
639	639	paid. 536 Raised Bill No. 182
640	640
641	641
642	642
643	643	LCO No. 1678 18 of 26
644	644
645	645	(g) Before the commissioner may issue any order directing payment 537
646	646	out of the guaranty fund to an owner pursuant to subsections (e) or (f) 538
647	647	of this section, the commissioner shall first notify the contractor of the 539
648	648	owner's application for an order directing payment out of the guaranty 540
649	649	fund and of the contractor's right to a hearing to contest the 541
650	650	disbursement in the event that the contractor has already paid the owner 542
651	651	or is complying with a payment schedule in accordance with a court 543
652	652	judgment, order or decree. Such notice shall be given to the contractor 544
653	653	not later than fifteen days after receipt by the commissioner of the 545
654	654	owner's application for an order directing payment out of the guaranty 546
655	655	fund. If the contractor requests a hearing, in writing, by certified mail 547
656	656	not later than fifteen days after receiving the notice from the 548
657	657	commissioner, the commissioner shall grant such request and shall 549
658	658	conduct a hearing in accordance with the provisions of chapter 54. If the 550
659	659	commissioner does not receive a request by certified mail from the 551
660	660	contractor for a hearing not later than fifteen days after the contractor's 552
661	661	receipt of such notice, the commissioner shall determine that the owner 553
662	662	has not been paid, and the commissioner shall issue an order directing 554
663	663	payment out of the guaranty fund for the amount unpaid upon the 555
664	664	judgment, order or decree for actual damages and costs taxed by the 556
665	665	court against the contractor, exclusive of punitive damages, or for the 557
666	666	amount unpaid upon the order of restitution. 558
667	667	(h) The commissioner or his designee may proceed against any 559
668	668	contractor holding a certificate or who has held a certificate under this 560
669	669	chapter within the past two years of the effective date of entering into 561
670	670	the contract with the owner, for an order of restitution arising from loss 562
671	671	or damages sustained by any person by reason of such contractor's 563
672	672	performance of or offering to perform a home improvement in this state. 564
673	673	Any such proceeding shall be held in accordance with the provisions of 565
674	674	chapter 54. In the course of such proceeding, the commissioner or his 566
675	675	designee shall decide whether to exercise his powers pursuant to section 567
676	676	20-426, as amended by this act; whether to order restitution arising from 568
677	677	loss or damages sustained by any person by reason of such contractor's 569
678	678	performance or offering to perform a home improvement in this state; 570 Raised Bill No. 182
679	679
680	680
681	681
682	682	LCO No. 1678 19 of 26
683	683
684	684	and whether to order payment out of the guaranty fund. 571
685	685	Notwithstanding the provisions of chapter 54, the decision of the 572
686	686	commissioner or his designee shall be final with respect to any 573
687	687	proceeding to order payment out of the guaranty fund and the 574
688	688	commissioner and his designee shall not be subject to the requirements 575
689	689	of chapter 54 as they relate to appeal from any such decision. The 576
690	690	commissioner or his designee may hear complaints of all owners 577
691	691	submitting claims against a single contractor in one proceeding. 578
692	692	(i) No application for an order directing payment out of the guaranty 579
693	693	fund shall be made later than two years from the final determination of, 580
694	694	or expiration of time for, appeal in connection with any judgment, order 581
695	695	or decree of restitution. 582
696	696	(j) Whenever the owner satisfies the commissioner or his designee 583
697	697	that it is not practicable to comply with the requirements of [subdivision 584
698	698	(3) of] subsection (d) of this section and that the owner has taken all 585
699	699	reasonable steps to collect the amount of the judgment, order or decree 586
700	700	or the unsatisfied part thereof and has been unable to collect the same, 587
701	701	the commissioner or his designee may in his discretion dispense with 588
702	702	the necessity for complying with such requirement. 589
703	703	(k) In order to preserve the integrity of the guaranty fund, the 590
704	704	commissioner, in the commissioner's sole discretion, may order 591
705	705	payment out of said fund of an amount less than the actual loss or 592
706	706	damages incurred by the owner or less than the order of restitution 593
707	707	awarded by the commissioner or the Superior Court. In no event shall 594
708	708	any payment out of said guaranty fund be in excess of fifteen thousand 595
709	709	dollars for any single claim by an owner. 596
710	710	(l) If the money deposited in the guaranty fund is insufficient to 597
711	711	satisfy any duly authorized claim or portion thereof, the commissioner 598
712	712	shall, when sufficient money has been deposited in the fund, satisfy 599
713	713	such unpaid claims or portions thereof, in the order that such claims or 600
714	714	portions thereof were originally determined. 601
715	715	(m) Whenever the commissioner has caused any sum to be paid from 602 Raised Bill No. 182
716	716
717	717
718	718
719	719	LCO No. 1678 20 of 26
720	720
721	721	the guaranty fund to an owner, the commissioner shall be subrogated to 603
722	722	all of the rights of the owner up to the amount paid plus reasonable 604
723	723	interest, and prior to receipt of any payment from the guaranty fund, 605
724	724	the owner shall assign all of this right, title and interest in the claim up 606
725	725	to such amount to the commissioner, and any amount and interest 607
726	726	recovered by the commissioner on the claim shall be deposited to the 608
727	727	guaranty fund. 609
728	728	(n) If the commissioner orders the payment of any amount as a result 610
729	729	of a claim against a contractor, the commissioner shall determine if the 611
730	730	contractor is possessed of assets liable to be sold or applied in 612
731	731	satisfaction of the claim on the guaranty fund. If the commissioner 613
732	732	discovers any such assets, he may request that the Attorney General take 614
733	733	any action necessary for the reimbursement of the guaranty fund. 615
734	734	(o) If the commissioner orders the payment of an amount as a result 616
735	735	of a claim against a contractor, the commissioner may, after notice and 617
736	736	hearing in accordance with the provisions of chapter 54, revoke the 618
737	737	certificate of the contractor and the contractor shall not be eligible to 619
738	738	receive a new or renewed certificate until he has repaid such amount in 620
739	739	full, plus interest from the time said payment is made from the guaranty 621
740	740	fund, at a rate to be in accordance with section 37-3b, except that the 622
741	741	commissioner may, in his sole discretion, permit a contractor to receive 623
742	742	a new or renewed certificate after that contractor has entered into an 624
743	743	agreement with the commissioner whereby the contractor agrees to 625
744	744	repay the guaranty fund in full in the form of periodic payments over a 626
745	745	set period of time. Any such agreement shall include a provision 627
746	746	providing for the summary suspension of any and all certificates held 628
747	747	by the contractor if payment is not made in accordance with the terms 629
748	748	of the agreement. 630
749	749	Sec. 9. Section 20-417c of the general statutes is repealed and the 631
750	750	following is substituted in lieu thereof (Effective March 31, 2025): 632
751	751	The commissioner may revoke, suspend, [or] refuse to issue or renew, 633
752	752	or place conditions upon the renewal of any certificate issued pursuant 634 Raised Bill No. 182
753	753
754	754
755	755
756	756	LCO No. 1678 21 of 26
757	757
758	758	to sections 20-417a to 20-417j, inclusive, as amended by this act, or place 635
759	759	a registrant on probation or issue a letter of reprimand after notice and 636
760	760	hearing in accordance with the provisions of chapter 54 concerning 637
761	761	contested cases if it is shown that the holder of such certificate has: (1) 638
762	762	Failed to comply with any provision of sections 20-417a to 20-417j, 639
763	763	inclusive, as amended by this act, or any regulation adopted pursuant 640
764	764	to said sections; (2) obtained the certificate through fraud or 641
765	765	misrepresentation; (3) engaged in conduct of a character likely to 642
766	766	mislead, deceive or defraud the public or the commissioner; (4) engaged 643
767	767	in any untruthful or misleading advertising; (5) [failed to reimburse the 644
768	768	New Home Construction Guaranty Fund established pursuant to 645
769	769	section 20-417i for any moneys paid to a consumer pursuant to said 646
770	770	section; (6)] engaged in an unfair or deceptive business practice under 647
771	771	subsection (a) of section 42-110b; [(7)] (6) failed to timely complete any 648
772	772	task, as specified in a written contract of sale; [(8)] (7) failed to remedy 649
773	773	any violation of any provision of sections 47-116 to 47-121, inclusive, or 650
774	774	any regulation adopted pursuant to said sections; [(9)] (8) failed to 651
775	775	remedy any violation of any provision of the State Building Code; or 652
776	776	[(10)] (9) if applicable, failed to maintain its certificate of good standing 653
777	777	issued by the office of the Secretary of the State. 654
778	778	Sec. 10. Section 20-417j of the general statutes is repealed and the 655
779	779	following is substituted in lieu thereof (Effective March 31, 2025): 656
780	780	(a) Sections 20-417a to 20-417i, inclusive, as amended by this act, do 657
781	781	not apply to any of the following persons or organizations: (1) Any 658
782	782	person holding a current license as a real estate broker or salesperson 659
783	783	issued pursuant to chapter 392, provided such person engages only in 660
784	784	work for which such person is licensed under chapter 392; (2) any 661
785	785	person licensed or otherwise authorized under chapter 412 to sell or 662
786	786	place a mobile manufactured home, as defined in section 21-64, upon a 663
787	787	mobile manufactured home park or mobile manufactured space or lot, 664
788	788	both as defined in section 21-64, provided such person engages only in 665
789	789	work for which such person is licensed or otherwise authorized under 666
790	790	chapter 412; (3) any other person holding a professional or occupational 667
791	791	license, registration or certificate issued pursuant to the general statutes, 668 Raised Bill No. 182
792	792
793	793
794	794
795	795	LCO No. 1678 22 of 26
796	796
797	797	provided such person engages only in the work for which such person 669
798	798	is licensed, registered or certified; and (4) any new home construction 670
799	799	contractor who enters into one or more new home construction 671
800	800	contracts related to the same new home when such contract or contracts 672
801	801	in the aggregate with respect to that home has a total price for work or 673
802	802	services that is less than three thousand five hundred dollars. 674
803	803	(b) The commissioner shall reimburse the amount of the fees paid for 675
804	804	a certificate issued under section 20-417b, as amended by this act, [and 676
805	805	the amount of fees paid into the New Home Construction Guaranty 677
806	806	Fund pursuant to section 20-417i] if such person for whom 678
807	807	reimbursement is requested (1) is a person exempt from registration as 679
808	808	a new home construction contractor pursuant to subsection (a) of this 680
809	809	section, and (2) makes such request in writing to the Department of 681
810	810	Consumer Protection on a form supplied by the department and such 682
811	811	request is received by the department on or before June 30, 2001. 683
812	812	Sec. 11. Section 20-426 of the general statutes is repealed and the 684
813	813	following is substituted in lieu thereof (Effective March 31, 2025): 685
814	814	(a) The commissioner may revoke, suspend or refuse to issue or 686
815	815	renew any certificate of registration as a home improvement contractor 687
816	816	or salesperson or place a registrant on probation or issue a letter of 688
817	817	reprimand for: (1) Conduct of a character likely to mislead, deceive or 689
818	818	defraud the public or the commissioner; (2) engaging in any untruthful 690
819	819	or misleading advertising; (3) [failing to reimburse the guaranty fund 691
820	820	established pursuant to section 20-432 for any moneys paid to an owner 692
821	821	pursuant to subsection (o) of section 20-432; (4)] unfair or deceptive 693
822	822	business practices; or [(5)] (4) violation of any of the provisions of the 694
823	823	general statutes relating to home improvements or any regulation 695
824	824	adopted pursuant to any of such provisions. The commissioner may 696
825	825	refuse to issue or renew any certificate of registration as a home 697
826	826	improvement contractor or salesperson of any person subject to the 698
827	827	registration requirements of chapter 969. 699
828	828	(b) The commissioner shall not revoke or suspend any certificate of 700 Raised Bill No. 182
829	829
830	830
831	831
832	832	LCO No. 1678 23 of 26
833	833
834	834	registration or require the posting of a bond except upon notice and 701
835	835	hearing in accordance with chapter 54. 702
836	836	Sec. 12. Section 21a-11 of the general statutes is repealed and the 703
837	837	following is substituted in lieu thereof (Effective March 31, 2025): 704
838	838	(a) The Commissioner of Consumer Protection may, subject to the 705
839	839	provisions of chapter 67, employ such agents and assistants as are 706
840	840	necessary to enforce the provisions of the general statutes wherein said 707
841	841	commissioner is empowered to carry out the duties and responsibilities 708
842	842	assigned to him or his department. For the purpose of inquiring into any 709
843	843	suspected violation of such provisions, the commissioner and his 710
844	844	deputy and assistants shall have free access, at all reasonable hours, to 711
845	845	all places and premises, homes and apartments of private families 712
846	846	keeping no boarders excepted. The commissioner and his or her deputy 713
847	847	or assistants shall have the authority to issue citations pursuant to 714
848	848	section 51-164n for violations for the purpose of enforcing such 715
849	849	provisions. 716
850	850	(b) On the tender of the market price, the commissioner or his deputy 717
851	851	may take from any person, firm or corporation samples of any article 718
852	852	which he suspects is sold, offered for sale, kept with intent to sell, made 719
853	853	or manufactured contrary to any provision of this chapter or related 720
854	854	chapters under the jurisdiction of said commissioner. He may analyze 721
855	855	such samples or have them analyzed by a state chemist or by an 722
856	856	experiment station or by the laboratories of the Department of Public 723
857	857	Health, and a sworn or affirmed certificate by such analyst shall be 724
858	858	prima facie evidence of the ingredients and constituents of the samples 725
859	859	analyzed. If such analysis shows that any such sample does not conform 726
860	860	to the requirements of law, and gives the commissioner or his deputy 727
861	861	reasonable grounds for believing that any provision of this chapter or 728
862	862	related chapters under his jurisdiction has been violated, he shall cause 729
863	863	such violator to be prosecuted. Any person who refuses the access 730
864	864	provided for herein to the commissioner, his deputy or assistants, or 731
865	865	who refuses to sell the samples provided for herein, shall be guilty of a 732
866	866	class D misdemeanor. Evidence of violation of any provision of this 733 Raised Bill No. 182
867	867
868	868
869	869
870	870	LCO No. 1678 24 of 26
871	871
872	872	section shall be prima facie evidence of wilful violation. 734
873	873	(c) The commissioner may, subject to the provisions of chapter 54, 735
874	874	revoke, suspend or deny any license or registration issued by the 736
875	875	department in the event that such licensee or registrant, including, but 737
876	876	not limited to, an owner of any business entity holding such license or 738
877	877	registration, owes moneys to any guaranty fund or account maintained 739
878	878	or used by the department, including, but not limited to, [the Home 740
879	879	Improvement Guaranty Fund established pursuant to section 20-432, 741
880	880	the New Home Construction Guaranty Fund established pursuant to 742
881	881	section 20-417i,] the Connecticut Health Club Guaranty Fund 743
882	882	established pursuant to section 21a-226, the Real Estate Guaranty Fund 744
883	883	established pursuant to section 20-324a and the privacy protection 745
884	884	guaranty and enforcement account established pursuant to section 42-746
885	885	472a. 747
886	886	Sec. 13. Section 20-420 of the general statutes is repealed and the 748
887	887	following is substituted in lieu thereof (Effective July 1, 2021): 749
888	888	(a) No person shall hold himself or herself out to be a contractor or 750
889	889	salesperson without first obtaining a certificate of registration from the 751
890	890	commissioner as provided in this chapter, except that an individual or 752
891	891	partner, or officer or director of a corporation registered as a contractor 753
892	892	shall not be required to obtain a salesperson's certificate, except as 754
893	893	provided in subsection (e) of this section. No certificate shall be given to 755
894	894	any person who holds himself or herself out to be a contractor that 756
895	895	performs radon mitigation unless such contractor provides evidence, 757
896	896	satisfactory to the commissioner, that the contractor is certified as a 758
897	897	radon mitigator by the National Radon Safety Board or the National 759
898	898	Environmental Health Association. No certificate shall be given to any 760
899	899	person who holds himself or herself out to be a contractor that performs 761
900	900	removal or replacement of any residential underground heating oil 762
901	901	storage tank system unless such contractor provides evidence, 763
902	902	satisfactory to the commissioner, that the contractor (1) has completed a 764
903	903	hazardous material training program approved by the Department of 765
904	904	Energy and Environmental Protection, and (2) has presented evidence 766 Raised Bill No. 182
905	905
906	906
907	907
908	908	LCO No. 1678 25 of 26
909	909
910	910	of liability insurance coverage of one million dollars. 767
911	911	(b) No contractor shall employ any salesman to procure business 768
912	912	from an owner unless the salesman is registered under this chapter. 769
913	913	(c) No individual shall act as a home improvement salesman for an 770
914	914	unregistered contractor. 771
915	915	(d) On and after July 1, 2008, a home improvement contractor shall 772
916	916	not perform gas hearth product work, as defined in subdivision (22) of 773
917	917	section 20-330, unless such home improvement contractor holds a 774
918	918	limited contractor or journeyman gas hearth installer license pursuant 775
919	919	to section 20-334f. 776
920	920	(e) A retail establishment shall apply for a certificate of registration if 777
921	921	it employs or otherwise compensates one or more salespersons whose 778
922	922	sales are made pursuant to negotiations initiated by prospective buyers 779
923	923	at or with a retail establishment that operates from a fixed location 780
924	924	where goods or services are offered for sale. Such application for a 781
925	925	certificate of registration shall include the name, residence address, 782
926	926	business address, business telephone number and such other 783
927	927	information as the commissioner may require, for each such 784
928	928	salesperson. The application fee shall be one hundred twenty dollars per 785
929	929	salesperson listed on the application. 786
930	930	Sec. 14. (NEW) (Effective from passage) While the holder of a limited 787
931	931	license issued pursuant to chapter 393 of the general statutes is enrolled 788
932	932	in an unlimited license apprenticeship program, such limited license 789
933	933	holder shall be considered a journeyman or contractor for purposes of 790
934	934	section 20-332b of the general statutes and any regulation of Connecticut 791
935	935	state agencies adopted pursuant to said section. 792
936	936	Sec. 15. Sections 20-417i and 20-432 of the general statutes are 793
937	937	repealed. (Effective March 31, 2025) 794
938	938	This act shall take effect as follows and shall amend the following
939	939	sections:
940	940	Raised Bill No. 182
941	941
942	942
943	943
944	944	LCO No. 1678 26 of 26
945	945
946	946	Section 1 July 1, 2021 20-417b
947	947	Sec. 2 July 1, 2021 New section
948	948	Sec. 3 July 1, 2021 20-417i
949	949	Sec. 4 July 1, 2021 20-419
950	950	Sec. 5 July 1, 2021 20-420a
951	951	Sec. 6 July 1, 2021 20-421(a)
952	952	Sec. 7 July 1, 2021 20-427(e)
953	953	Sec. 8 July 1, 2021 20-432
954	954	Sec. 9 March 31, 2025 20-417c
955	955	Sec. 10 March 31, 2025 20-417j
956	956	Sec. 11 March 31, 2025 20-426
957	957	Sec. 12 March 31, 2025 21a-11
958	958	Sec. 13 July 1, 2021 20-420
959	959	Sec. 14 from passage New section
960	960	Sec. 15 March 31, 2025 Repealer section
961	961
962	962	Statement of Purpose:
963	963	To protect consumers by effectively regulating new home construction
964	964	contractors and home improvement contractors.
965	965	[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except
966	966	that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not
967	967	underlined.]
968	968