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General Assembly Raised Bill No. 5272
February Session, 2024
LCO No. 1429
Referred to Committee on PLANNING AND DEVELOPMENT
Introduced by:
(PD)
AN ACT CONCERNING THE EXPIRATION OF CERTAIN LAND USE
APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY
FUND.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Subsection (m) of section 8-3 of the 2024 supplement to the 1
general statutes is repealed and the following is substituted in lieu 2
thereof (Effective from passage): 3
(m) (1) Notwithstanding the provisions of this section, any site plan 4
approval made under this section [prior to July 1, 2011] on or before June 5
10, 2021, that has not expired [prior to] on or before July 12, 2021, except 6
an approval made under subsection (j) of this section or as provided in 7
subdivision (2) of this subsection, shall expire not less than fourteen 8
years after the date of such approval and the commission may grant one 9
or more extensions of time to complete all or part of the work in 10
connection with such site plan, provided no approval, including all 11
extensions, shall be valid for more than nineteen years from the date the 12
site plan was approved. 13
(2) Notwithstanding the provisions of this section, a commission that 14
has granted any site plan approval [made] under this section [on or after 15 Raised Bill No. 5272
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July 1, 2011, but prior to June 10, 2021, that did not expire prior to March 16
10, 2020, except an approval made under subsection (j) of this section, 17
shall expire not less than fourteen years after the date of such approval 18
and the commission may grant one or more extensions of time to 19
complete all or part of the work in connection with such site plan, 20
provided no approval, including all extensions, shall be valid for more 21
than nineteen years from the date the site plan was approved] on or 22
before June 10, 2021, that has not expired on or before July 12, 2021, may, 23
by affirmative vote of the commission, set an earlier date upon which 24
such approval shall expire, provided the commission (A) holds a public 25
hearing on such proposed earlier date in accordance with the provisions 26
of section 8-7d, and (B) finds that (i) because of incomplete or 27
substandard work undertaken in connection with the site plan 28
approval, a condition exists that poses a significant hazard to the public, 29
or (ii) no work required in connection with the site plan approval has 30
been performed in the previous five years. 31
Sec. 2. Subsection (e) of section 8-26c of the general statutes is 32
repealed and the following is substituted in lieu thereof (Effective from 33
passage): 34
(e) (1) Notwithstanding the provisions of this section, any 35
subdivision approval made under this section [prior to July 1, 2011] on 36
or before June 10, 2021, that has not expired [prior to] on or before July 37
12, 2021, except as provided in subdivision (2) of this subsection, shall 38
expire not less than fourteen years after the date of such approval and 39
the commission may grant one or more extensions of time to complete 40
all or part of the work in connection with such subdivision, provided no 41
subdivision approval, including all extensions, shall be valid for more 42
than nineteen years from the date the subdivision was approved. 43
(2) Notwithstanding the provisions of this section, a commission that 44
has granted any subdivision approval [made] under this section [on or 45
after July 1, 2011, but prior to June 10, 2021, that did not expire prior to 46
March 10, 2020, shall expire not less than fourteen years after the date of 47
such approval and the commission may grant one or more extensions of 48 Raised Bill No. 5272
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time to complete all or part of the work in connection with such 49
subdivision, provided no subdivision approval, including all 50
extensions, shall be valid for more than nineteen years from the date the 51
subdivision was approved] on or before June 10, 2021, that has not 52
expired on or before July 12, 2021, may, by affirmative vote of the 53
commission, set an earlier date upon which such approval shall expire, 54
provided the commission (A) holds a public hearing on such proposed 55
earlier date in accordance with the provisions of section 8-7d, and (B) 56
finds that (i) because of incomplete or substandard work undertaken in 57
connection with the approval, a condition exists that poses a significant 58
hazard to the public, or (ii) no work required in connection with the 59
approval has been performed in the previous five years. 60
Sec. 3. Subsection (c) of section 8-26g of the general statutes is 61
repealed and the following is substituted in lieu thereof (Effective from 62
passage): 63
(c) (1) Notwithstanding the provisions of this section, for any 64
subdivision of land for a project consisting of four hundred or more 65
dwelling units and approved [prior to July 1, 2011] on or before June 10, 66
2021, that has not expired [prior to] on or before July 12, 2021, except as 67
provided in subdivision (2) of this subsection, any person, firm or 68
corporation making such subdivision shall complete all work in 69
connection with such subdivision not later than the date nineteen years 70
after the date of approval of the plan for such subdivision. The 71
commission's endorsement of approval on the plan shall state the date 72
on which such nineteen-year period expires. 73
(2) Notwithstanding the provisions of this section, a commission that 74
has granted approval for any subdivision of land for a project consisting 75
of four hundred or more dwelling units [and approved on or after July 76
1, 2011, but prior to June 10, 2021, that did not expire prior to March 10, 77
2020, any person, firm or corporation making such subdivision shall 78
complete all work in connection with such subdivision not later than the 79
date nineteen years after the date of approval of the plan for such 80
subdivision. The commission's endorsement of approval on the plan 81 Raised Bill No. 5272
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shall state the date on which such nineteen-year period expires] on or 82
before June 10, 2021, that has not expired on or before July 12, 2021, may, 83
by affirmative vote of the commission, set an earlier date upon which 84
such approval shall expire, provided the commission (A) holds a public 85
hearing on such proposed earlier date in accordance with the provisions 86
of section 8-7d, and (B) finds that (i) because of incomplete or 87
substandard work undertaken in connection with the approval, a 88
condition exists that poses a significant hazard to the public, or (ii) no 89
work required in connection with the approval has been performed in 90
the previous five years. 91
Sec. 4. Subsection (g) of section 22a-42a of the general statutes is 92
repealed and the following is substituted in lieu thereof (Effective from 93
passage): 94
(g) (1) Notwithstanding the provisions of subdivision (2) of 95
subsection (d) of this section, any permit issued under this section [prior 96
to July 1, 2011] on or before June 10, 2021, that has not expired [prior to] 97
on or before July 12, 2021, except as provided in subdivision (2) of this 98
subsection, shall expire not less than fourteen years after the date of such 99
approval. Any such permit shall be renewed upon request of the permit 100
holder unless the agency finds that there has been a substantial change 101
in circumstances that requires a new permit application or an 102
enforcement action has been undertaken with regard to the regulated 103
activity for which the permit was issued, provided no such permit shall 104
be valid for more than nineteen years. 105
(2) Notwithstanding the provisions of subdivision (2) of subsection 106
(d) of this section, an inland wetlands agency that has issued any permit 107
[issued] under this section [on or after July 1, 2011, but prior to June 10, 108
2021, that did not expire prior to March 10, 2020, shall expire not less 109
than fourteen years after the date of such approval] on or before June 110
10, 2021, that has not expired on or before July 12, 2021, may, by 111
affirmative vote of such agency, set an earlier date upon which such 112
permit shall expire, provided the agency (A) holds a public hearing on 113
such proposed earlier date in accordance with the provisions of section 114 Raised Bill No. 5272
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8-7d, and (B) finds that (i) because of incomplete or substandard work 115
undertaken in connection with the permit, a condition exists that poses 116
a significant hazard to the public, or (ii) no work required in connection 117
with the permit has been performed in the previous five years. Any such 118
permit shall be renewed upon request of the permit holder unless the 119
agency finds that there has been a substantial change in circumstances 120
that requires a new permit application or an enforcement action has 121
been undertaken with regard to the regulated activity for which the 122
permit was issued, provided no such permit shall be valid for more than 123
nineteen years. 124
Sec. 5. Subsection (c) of section 8-3c of the general statutes is repealed 125
and the following is substituted in lieu thereof (Effective from passage): 126
(c) (1) Notwithstanding the provisions of subsections (a) and (b) of 127
this section, any special permit or special exception approval made 128
under this section [prior to July 1, 2011] on or before June 10, 2021, that 129
has not expired [prior to] on or before July 12, 2021, except as provided 130
in subdivision (2) of this subsection, and that specified a deadline by 131
which all work in connection with such approval is required to be 132
completed, shall expire not less than nineteen years after the date of such 133
approval and the commission may grant one or more extensions of time 134
to complete all or part of the work in connection with such special 135
permit or special exception. 136
(2) Notwithstanding the provisions of subsections (a) and (b) of this 137
section, a commission that has granted any special permit or special 138
exception approval [made] under this section [on or after July 1, 2011, 139
but prior to June 10, 2021, that did not expire prior to March 10, 2020, 140
and that specified a deadline by which all work in connection with such 141
approval is required to be completed, shall expire not less than nineteen 142
years after the date of such approval and the commission may grant one 143
or more extensions of time to complete all or part of the work in 144
connection with such special permit or special exception] on or before 145
June 10, 2021, that has not expired on or before July 12, 2021, may, by 146
affirmative vote of the commission, set an earlier date upon which such 147 Raised Bill No. 5272
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permit or approval shall expire, provided the commission (A) holds a 148
public hearing on such proposed earlier date in accordance with the 149
provisions of section 8-7d, and (B) finds that (i) because of incomplete 150
or substandard work undertaken in connection with the permit or 151
approval, a condition exists that poses a significant hazard to the public, 152
or (ii) no work required in connection with the permit or approval has 153
been performed in the previous five years. 154
Sec. 6. Subsection (b) of section 8-26e of the general statutes is 155
repealed and the following is substituted in lieu thereof (Effective from 156
passage): 157
(b) (1) Notwithstanding the provisions of subsection (a) of this 158
section, any special permit or special exception approval made under 159
this section [prior to July 1, 2011] on or before June 10, 2021, that has not 160
expired [prior to] on or before July 12, 2021, and that specified a deadline 161
by which all work in connection with such approval is required to be 162
completed, except as provided in subdivision (2) of this subsection, shall 163
expire not less than nineteen years after the date of such approval and 164
the commission may grant one or more extensions of time to complete 165
all or part of the work in connection with such special permit or special 166
exception. 167
(2) Notwithstanding the provisions of subsection (a) of this section, a 168
commission that has granted any special permit or special exception 169
approval [made] under this section [on or after July 1, 2011, but prior to 170
June 10, 2021, that did not expire prior to March 10, 2020, and that 171
specified a deadline by which all work in connection with such approval 172
is required to be completed, shall expire not less than nineteen years 173
after the date of such approval and the commission may grant one or 174
more extensions of time to complete all or part of the work in connection 175
with such special permit or special exception] on or before June 10, 2021, 176
that has not expired on or before July 12, 2021, may, by affirmative vote 177
of the commission, set an earlier date upon which such permit or 178
approval shall expire, provided the commission (A) holds a public 179
hearing on such proposed earlier date in accordance with the provisions 180 Raised Bill No. 5272
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of section 8-7d, and (B) finds that (i) because of incomplete or 181
substandard work undertaken in connection with the permit or 182
approval, a condition exists that poses a significant hazard to the public, 183
or (ii) no work required in connection with the permit or approval has 184
been performed in the previous five years. 185
Sec. 7. Section 8-3k of the general statutes is repealed and the 186
following is substituted in lieu thereof (Effective from passage): 187
(a) (1) Notwithstanding the provisions of any special act, any site 188
plan, subdivision or permit approval by a zoning commission, planning 189
commission, combined planning and zoning commission, zoning board 190
of appeals or inland wetlands agency pursuant to the provisions of any 191
such special act that occurred [prior to July 1, 2011] on or before June 10, 192
2021, and that has not expired [prior to] on or before July 12, 2021, except 193
as provided in subdivision (2) of this subsection, shall expire not less 194
than fourteen years after the date of such approval and such 195
commission, board or agency, as applicable, may grant one or more 196
extensions of time to complete all or part of the work in connection with 197
such approval, provided no approval, including all extensions, shall be 198
valid for more than nineteen years from the date the site plan, 199
subdivision or permit was initially approved. 200
(2) Notwithstanding the provisions of any special act, a zoning 201
commission, planning commission, combined planning and zoning 202
commission, zoning board of appeals or inland wetlands agency that 203
has approved any site plan, subdivision or permit [approval by a zoning 204
commission, planning commission, combined planning and zoning 205
commission, zoning board of appeals or inland wetlands agency] 206
pursuant to the provisions of any such special act [that] when such 207
approval occurred [on or after July 1, 2011, but prior to July 10, 2021, 208
and that did not expire prior to March 10, 2020, shall expire not less than 209
fourteen years after the date of such approval and such commission, 210
board or agency, as applicable, may grant one or more extensions of 211
time to complete all or part of the work in connection with such 212
approval, provided no approval, including all extensions, shall be valid 213 Raised Bill No. 5272
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for more than nineteen years from the date the site plan, subdivision or 214
permit was initially approved] on or before June 10, 2021, and has not 215
expired on or before July 12, 2021, may, by affirmative vote of the zoning 216
commission, planning commission, combined planning and zoning 217
commission, zoning board of appeals or inland wetlands agency, set an 218
earlier date upon which such approval shall expire, provided such 219
commission, board or agency (A) holds a public hearing on such 220
proposed earlier date in accordance with the provisions of section 8-7d, 221
and (B) finds that (i) because of incomplete or substandard work 222
undertaken in connection with the approval, a condition exists that 223
poses a significant hazard to the public, or (ii) no work required in 224
connection with the approval has been performed in the previous five 225
years. 226
(b) (1) Notwithstanding the provisions of any special act, any special 227
permit or special exception approval by a zoning commission, planning 228
commission, combined planning and zoning commission, zoning board 229
of appeals or inland wetlands agency pursuant to the provisions of any 230
such special act that occurred [prior to July 1, 2011] on or before June 10, 231
2021, that has not expired [prior to] on or before July 12, 2021, and that 232
specified a deadline by which all work in connection with such approval 233
is required to be completed, except as provided in subdivision (2) of this 234
subsection, shall expire not less than nineteen years after the date of 235
such approval and such commission, board or agency, as applicable, 236
may grant one or more extensions of time to complete all or part of the 237
work in connection with such special permit or special exception 238
approval. 239
(2) Notwithstanding the provisions of any special act, a zoning 240
commission, planning commission, combined planning and zoning 241
commission, zoning board of appeals or inland wetlands agency that 242
has approved any special permit or special exception [approval by a 243
zoning commission, planning commission, combined planning and 244
zoning commission, zoning board of appeals or inland wetlands 245
agency] pursuant to the provisions of any such special act [that] when 246
such approval occurred [on or after July 1, 2011, but prior to June 10, 247 Raised Bill No. 5272
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2021, that did not expire prior to March 10, 2020, and that specified a 248
deadline by which all work in connection with such approval is required 249
to be completed, shall expire not less than nineteen years after the date 250
of such approval and such commission, board or agency, as applicable, 251
may grant one or more extensions of time to complete all or part of the 252
work in connection with such special permit or special exception 253
approval] on or before June 10, 2021, and has not expired on or before 254
July 12, 2021, may, by affirmative vote of the zoning commission, 255
planning commission, combined planning and zoning commission, 256
zoning board of appeals or inland wetlands agency, set an earlier date 257
upon which such approval shall expire, provided such commission, 258
board or agency (A) holds a public hearing on such proposed earlier 259
date in accordance with the provisions of section 8-7d, and (B) finds that 260
(i) because of incomplete or substandard work undertaken in 261
connection with the approval, a condition exists that poses a significant 262
hazard to the public, or (ii) no work required in connection with the 263
approval has been performed in the previous five years. 264
Sec. 8. Subsections (c) to (n), inclusive, of section 20-417i of the general 265
statutes are repealed and the following is substituted in lieu thereof 266
(Effective July 1, 2024, and effective for fiscal years commencing on or after 267
July 1, 2024): 268
(c) (1) For fiscal years commencing on or after July 1, 2003, payments 269
received under subsection (b) of this section shall be credited to the New 270
Home Construction Guaranty Fund until the balance in the fund equals 271
[seven] six hundred fifty thousand dollars. Annually, if the balance in 272
the fund exceeds [seven] six hundred fifty thousand dollars, the first 273
[three] four hundred thousand dollars of the excess shall be deposited 274
in the consumer protection enforcement account established in section 275
21a-8a. On June 1, 2004, and each June first thereafter, if the balance in 276
the fund exceeds [seven] six hundred fifty thousand dollars, the excess 277
shall be deposited in the General Fund. 278
(2) Any money in the New Home Construction Guaranty Fund may 279
be invested or reinvested in the same manner as funds of the state 280 Raised Bill No. 5272
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employees retirement system and the interest arising from such 281
investments shall be credited to the fund. 282
(d) Whenever a consumer obtains a binding arbitration decision, a 283
court judgment, order or decree against or regarding any new home 284
construction contractor holding a certificate or who has held a certificate 285
under sections 20-417a to 20-417j, inclusive, within two years of the date 286
of entering into the contract with the consumer, or an individual that 287
has an ownership interest in a business entity or association that is a new 288
home construction contractor, for loss or damages sustained by reason 289
of any violation of the provisions of sections 20-417a to 20-417j, 290
inclusive, by a person holding a certificate under said sections, such 291
consumer may, upon the final determination of, or expiration of time for 292
taking, an appeal in connection with any such decision, judgment, order 293
or decree, apply to the commissioner for an order directing payment out 294
of the New Home Construction Guaranty Fund of the amount, not 295
exceeding [thirty] fifty thousand dollars, unpaid upon the decision, 296
judgment, order or decree for actual damages and costs taxed by the 297
court against such contractor, exclusive of punitive damages. The 298
application shall be made on forms provided by the commissioner and 299
shall be accompanied by a copy of the decision, court judgment, order 300
or decree obtained against the new home construction contractor 301
together with a statement signed and sworn to by the consumer, 302
affirming that the consumer has: (1) Complied with all the requirements 303
of this subsection; (2) obtained a decision, judgment, order or decree 304
stating the amount of the decision, judgment, order or decree and the 305
amount owing on the decision, judgment, order or decree at the date of 306
application; and (3) made a good faith effort to satisfy any such decision, 307
judgment, order or decree in accordance with the provisions of chapter 308
906 which effort may include causing to be issued a writ of execution 309
upon such decision, judgment, order or decree but the officer executing 310
the same has made a return showing that no bank accounts or personal 311
property of such contractor liable to be levied upon in satisfaction of the 312
decision, judgment, order or decree could be found, or that the amount 313
realized on the sale of them or of such of them as were found, under the 314 Raised Bill No. 5272
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execution, was insufficient to satisfy the actual damage portion of the 315
decision, judgment, order or decree or stating the amount realized and 316
the balance remaining due on the decision, judgment, order or decree 317
after application on the decision, judgment, order or decree of the 318
amount realized, except that the requirements of this subdivision shall 319
not apply to a judgment, order or decree obtained by the consumer in 320
small claims court. A true and attested copy of such executing officer's 321
return, when required, shall be attached to such application. Whenever 322
the consumer satisfies the commissioner or the commissioner's designee 323
that it is not practicable to comply with the requirements of subdivision 324
(3) of this subsection and that the consumer has taken all reasonable 325
steps to collect the amount of the decision, judgment, order or decree or 326
the unsatisfied part of the decision, judgment, order or decree and has 327
been unable to collect the same, the commissioner or the commissioner's 328
designee may, in the commissioner's or the commissioner's designee's 329
discretion, dispense with the necessity for complying with such 330
requirement. No application for an order directing payment out of the 331
fund shall be made later than two years from the final determination of, 332
or expiration of time for taking, an appeal of such decision, court 333
judgment, order or decree and no such application shall be for an 334
amount in excess of [thirty] fifty thousand dollars. 335
(e) Upon receipt of such application together with such copy of the 336
decision, court judgment, order or decree, statement and, except as 337
otherwise provided in subsection (d) of this section, a true and attested 338
copy of the executing officer's return, the commissioner or the 339
commissioner's designee shall inspect such documents for their veracity 340
and upon a determination that such documents are complete and 341
authentic and that the consumer has not been paid, the commissioner 342
shall order payment out of the New Home Construction Guaranty Fund 343
of the amount not exceeding [thirty] fifty thousand dollars unpaid upon 344
the decision, judgment, order or decree for actual damages and costs 345
taxed by the court against the contractor, or an individual that has an 346
ownership interest in a business entity or association that is a new home 347
construction contractor, exclusive of punitive damages. 348 Raised Bill No. 5272
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(f) Beginning October 1, 2000, whenever a consumer is awarded an 349
order of restitution against any new home construction contractor, or an 350
individual that has an ownership interest in a business entity or 351
association that is a new home construction contractor, for loss or 352
damages sustained as a result of any violation of the provisions of 353
sections 20-417a to 20-417j, inclusive, by a person holding a certificate or 354
who has held a certificate under said sections within two years of the 355
date of entering into the contract with the consumer, in (1) a proceeding 356
brought by the commissioner pursuant to subsection [(h)] (i) of this 357
section or subsection (d) of section 42-110d, (2) a proceeding brought by 358
the Attorney General pursuant to subsection (a) of section 42-110m or 359
subsection (d) of section 42-110d, or (3) a criminal proceeding pursuant 360
to section 20-417e, such consumer may, upon the final determination of, 361
or expiration of time for taking, an appeal in connection with any such 362
order of restitution, apply to the commissioner for an order directing 363
payment out of the New Home Construction Guaranty Fund of the 364
amount not exceeding [thirty] fifty thousand dollars unpaid upon the 365
order of restitution. The commissioner may issue such order upon a 366
determination that the consumer has not been paid. 367
(g) Whenever the commissioner orders payment to a consumer out 368
of the New Home Construction Guaranty Fund based upon a decision, 369
judgment, order or decree of restitution against an individual that has 370
an ownership interest in a business entity or association holding a 371
certificate, or who has held a certificate under this chapter within the 372
two years preceding the effective date of the contract with the consumer, 373
the individual against whom such decision, judgment, order or decree 374
was issued shall be jointly and severally liable with the contractor for 375
the resulting debt to the fund. 376
[(g)] (h) Before the commissioner may issue any order directing 377
payment out of the New Home Construction Guaranty Fund to a 378
consumer pursuant to subsection (e) or (f) of this section, the 379
commissioner shall first notify the new home construction contractor, or 380
the individual who has an ownership interest in a business entity or 381
association that is a new home construction contractor against whom a 382 Raised Bill No. 5272
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decision, judgment, order or decree of restitution was issued, of the 383
consumer's application for an order directing payment out of the fund 384
and of the new home construction contractor's right to a hearing to 385
contest the disbursement in the event that such contractor has already 386
paid the consumer. Such notice shall be given to the new home 387
construction contractor not later than fifteen days after receipt by the 388
commissioner of the consumer's application for an order directing 389
payment out of the fund. If the new home construction contractor 390
requests a hearing, in writing, by certified mail not later than fifteen 391
days after receiving the notice from the commissioner, the 392
commissioner shall grant such request and shall conduct a hearing in 393
accordance with the provisions of chapter 54. If the commissioner does 394
not receive a written request for a hearing by certified mail from the new 395
home construction contractor on or before the fifteenth day from the 396
contractor's receipt of such notice, the commissioner shall conclude that 397
the consumer has not been paid, and the commissioner shall issue an 398
order directing payment out of the fund for the amount not exceeding 399
[thirty] fifty thousand dollars unpaid upon the judgment, order or 400
decree for actual damages and costs taxed by the court against the new 401
home construction contractor, exclusive of punitive damages, or for the 402
amount not exceeding [thirty] fifty thousand dollars unpaid upon the 403
order of restitution. 404
[(h)] (i) The commissioner or the commissioner's designee may 405
proceed against any new home construction contractor holding a 406
certificate or who has held a certificate under sections 20-417a to 20-417j, 407
inclusive, within two years of the effective date of entering into the 408
contract with the consumer, or an individual that has an ownership 409
interest in a business entity or association that is a new home 410
construction contractor, for an order of restitution arising from loss or 411
damages sustained by any consumer as a result of any violation of the 412
provisions of said sections 20-417a to 20-417j, inclusive. Any such 413
proceeding shall be held in accordance with the provisions of chapter 414
54. In the course of such proceeding, the commissioner or the 415
commissioner's designee shall decide whether to (1) exercise the powers 416 Raised Bill No. 5272
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specified in section 20-417c, (2) order restitution arising from loss or 417
damages sustained by any consumer as a result of any violation of the 418
provisions of sections 20-417a to 20-417j, inclusive, and (3) order 419
payment out of the New Home Construction Guaranty Fund. 420
Notwithstanding the provisions of chapter 54, the decision of the 421
commissioner or the commissioner's designee shall be final with respect 422
to any proceeding to order payment out of the fund and the 423
commissioner and the commissioner's designee shall not be subject to 424
the requirements of chapter 54 as such requirements relate to an appeal 425
from any such decision. The commissioner or the commissioner's 426
designee may hear complaints of all consumers submitting claims 427
against a single new home construction contractor in one proceeding. 428
[(i)] (j) No application for an order directing payment out of the New 429
Home Construction Guaranty Fund shall be made later than two years 430
from the final determination of [, or expiration of time for, an appeal in 431
connection with] any judgment, order or decree of restitution, and no 432
such application shall be for an amount in excess of [thirty] fifty 433
thousand dollars. 434
[(j)] (k) In order to preserve the integrity of the New Home 435
Construction Guaranty Fund, the commissioner, in the commissioner's 436
sole discretion, may order payment out of the fund of an amount less 437
than the actual loss or damages incurred by the consumer or less than 438
the order of restitution awarded by the commissioner or the Superior 439
Court. In no event shall any payment out of the fund be in excess of 440
[thirty] fifty thousand dollars for any single claim by a consumer. 441
[(k)] (l) If the money deposited in the New Home Construction 442
Guaranty Fund is insufficient to satisfy any duly authorized claim or 443
portion of a claim, the commissioner shall, when sufficient money has 444
been deposited in the fund, satisfy such unpaid claims or portions of 445
claims not exceeding [thirty] fifty thousand dollars, in the order that 446
such claims or portions of claims were originally determined. 447
[(l)] (m) Whenever the commissioner has caused any sum to be paid 448 Raised Bill No. 5272
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from the New Home Construction Guaranty Fund to a consumer, the 449
commissioner shall be subrogated to all of the rights of the consumer up 450
to the amount paid plus reasonable interest, and prior to receipt of any 451
payment from the fund, the consumer shall assign all of the consumer's 452
right, title and interest in the claim up to such amount to the 453
commissioner, and any amount and interest recovered by the 454
commissioner on the claim shall be deposited in the fund. 455
[(m)] (n) If the commissioner orders the payment of any amount as a 456
result of a claim against a new home construction contractor, or an 457
individual that has an ownership interest in a business entity or 458
association that is a new home construction contractor, the 459
commissioner shall determine if such contractor or individual is 460
possessed of assets liable to be sold or applied in satisfaction of the claim 461
on the New Home Construction Guaranty Fund. If the commissioner 462
discovers any such assets, the commissioner may request that the 463
Attorney General take any action necessary for the reimbursement of 464
the fund. 465
[(n)] (o) If the commissioner orders the payment of an amount as a 466
result of a claim against a new home construction contractor, or an 467
individual that has an ownership interest in a business entity or 468
association that is a new home construction contractor, the 469
commissioner may, after notice and hearing in accordance with the 470
provisions of chapter 54, revoke the certificate of such contractor and 471
such contractor shall not be eligible to receive a new or renewed 472
certificate until such contractor has repaid such amount in full, plus 473
interest from the time such payment is made from the New Home 474
Construction Guaranty Fund, at a rate to be in accordance with section 475
37-3b, except that the commissioner may, in the commissioner's sole 476
discretion, permit a new home construction contractor to receive a new 477
or renewed certificate after such contractor has entered into an 478
agreement with the commissioner whereby such contractor agrees to 479
repay the fund in full in the form of periodic payments over a set period 480
of time. Any such agreement shall include a provision providing for the 481
summary suspension of any and all certificates held by the new home 482 Raised Bill No. 5272
LCO No. 1429 16 of 16
construction contractor if payment is not made in accordance with the 483
terms of the agreement. 484
Sec. 9. (Effective July 1, 2024) The sum of one hundred thousand 485
dollars is appropriated to the Department of Consumer Protection from 486
the General Fund, for the fiscal year ending June 30, 2025, for the 487
administration of the New Home Construction Guaranty Fund. 488
This act shall take effect as follows and shall amend the following
sections:
Section 1 from passage 8-3(m)
Sec. 2 from passage 8-26c(e)
Sec. 3 from passage 8-26g(c)
Sec. 4 from passage 22a-42a(g)
Sec. 5 from passage 8-3c(c)
Sec. 6 from passage 8-26e(b)
Sec. 7 from passage 8-3k
Sec. 8 July 1, 2024, and effective
for fiscal years
commencing on or after
July 1, 2024
20-417i(c) to (n)
Sec. 9 July 1, 2024 New section
Statement of Purpose:
To (1) modify the dates upon which the approval of certain land use
applications will expire, (2) increase the maximum payments from the
New Home Construction Guaranty Fund from thirty thousand dollars
to fifty thousand dollars, (3) allow the Commissioner of Consumer
Protection to seek restitution from individual owners of new home
construction contractors against whom judgments have been issued,
and (4) to appropriate funds for the administration of the fund.
[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.]