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General Assembly Substitute Bill No. 5272
February Session, 2024
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general statutes is repealed and the following is substituted in lieu 2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
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 Substitute Bill No. 5272
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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
time to complete all or part of the work in connection with such 49
subdivision, provided no subdivision approval, including all 50 Substitute Bill No. 5272
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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
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 Substitute Bill No. 5272
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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] before June 10, 2021, 110
that has not expired on or before July 12, 2021, may, by affirmative vote 111
of such agency, set an earlier date upon which such permit shall expire, 112
provided the agency (A) holds a public hearing on such proposed earlier 113
date in accordance with the provisions of section 8-7d, and (B) finds that 114
(i) because of incomplete or substandard work undertaken in 115
connection with the permit, a condition exists that poses a significant 116 Substitute Bill No. 5272
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hazard to the public, or (ii) no work required in connection with the 117
permit has been performed in the previous five years. Any such permit 118
shall be renewed upon request of the permit holder unless the agency 119
finds that there has been a substantial change in circumstances that 120
requires a new permit application or an enforcement action has been 121
undertaken with regard to the regulated activity for which the permit 122
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] before June 10, 145
2021, that has not expired on or before July 12, 2021, may, by affirmative 146
vote of the commission, set an earlier date upon which such permit or 147
approval shall expire, provided the commission (A) holds a public 148
hearing on such proposed earlier date in accordance with the provisions 149 Substitute Bill No. 5272
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of section 8-7d, and (B) finds that (i) because of incomplete or 150
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] before June 10, 2021, that 176
has not expired on or before July 12, 2021, may, by affirmative vote of 177
the commission, set an earlier date upon which such permit or approval 178
shall expire, provided the commission (A) holds a public hearing on 179
such proposed earlier date in accordance with the provisions of section 180
8-7d, and (B) finds that (i) because of incomplete or substandard work 181
undertaken in connection with the permit or approval, a condition exists 182 Substitute Bill No. 5272
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that poses a significant hazard to the public, or (ii) no work required in 183
connection with the permit or approval has been performed in the 184
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
for more than nineteen years from the date the site plan, subdivision or 214
permit was initially approved] before June 10, 2021, and has not expired 215 Substitute Bill No. 5272
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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
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 Substitute Bill No. 5272
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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] before June 10, 2021, and has not expired on or before July 12, 254
2021, may, by affirmative vote of the zoning commission, planning 255
commission, combined planning and zoning commission, zoning board 256
of appeals or inland wetlands agency, set an earlier date upon which 257
such approval shall expire, provided such commission, board or agency 258
(A) holds a public hearing on such proposed earlier date in accordance 259
with the provisions of section 8-7d, and (B) finds that (i) because of 260
incomplete or substandard work undertaken in connection with the 261
approval, a condition exists that poses a significant hazard to the public, 262
or (ii) no work required in connection with the approval has been 263
performed in the previous five years. 264
Sec. 8. Section 20-417a of the general statutes is repealed and the 265
following is substituted in lieu thereof (Effective October 1, 2024): 266
As used in this section and sections 20-417b to 20-417j, inclusive: 267
(1) "Certificate" means a certificate of registration issued under 268
section 20-417b; 269
(2) "Commissioner" means the Commissioner of Consumer 270
Protection or any person designated by the commissioner to administer 271
and enforce this section and sections 20-417b to 20-417j, inclusive; 272
(3) "Contract" means any agreement between a new home 273
construction contractor and a consumer for the construction or sale of a 274
new home or any portion of a new home prior to occupancy; 275
(4) "Controlling participant" means an individual who exercises day-276
to-day financial or operational control of a business entity that is a new 277
home construction contractor; 278
[(4)] (5) "Engage in the business" means that the person engages in 279 Substitute Bill No. 5272
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the business for the purpose of compensation or profit; 280
[(5)] (6) "New home construction contractor" means any person who 281
contracts with a consumer to construct or sell a new home or any portion 282
of a new home prior to occupancy; 283
[(6)] (7) "New home" means any newly constructed (A) single-family 284
dwelling unit, (B) dwelling consisting of not more than two units, or (C) 285
unit, common element or limited common element in a condominium, 286
as defined in section 47-68a, or in a common interest community, as 287
defined in section 47-202; 288
[(7)] (8) "Person" means one or more individuals, partnerships, 289
associations, corporations, limited liability companies, business trusts, 290
legal representatives or any organized group of persons; 291
[(8)] (9) "Consumer" means the buyer or prospective buyer, or the 292
buyer's or prospective buyer's heirs or designated representatives, of 293
any new home or the owner of property on which a new home is being 294
or will be constructed regardless of whether such owner obtains a 295
building permit as the owner of the premises affected pursuant to 296
section 29-263; and 297
[(9)] (10) "Completion" means the stage of construction of a new home 298
in which the new home construction contractor is in receipt of the 299
certificate of occupancy for such new home issued by the municipality 300
in which such new home is constructed. 301
Sec. 9. Subsections (c) to (n), inclusive, of section 20-417i of the general 302
statutes are repealed and the following is substituted in lieu thereof 303
(Effective July 1, 2024, and effective for fiscal years commencing on or after 304
July 1, 2024): 305
(c) (1) For fiscal years commencing on or after July 1, 2003, payments 306
received under subsection (b) of this section shall be credited to the New 307
Home Construction Guaranty Fund until the balance in the fund equals 308
[seven] six hundred fifty thousand dollars. Annually, if the balance in 309 Substitute Bill No. 5272
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the fund exceeds [seven] six hundred fifty thousand dollars, the first 310
[three] four hundred thousand dollars of the excess shall be deposited 311
in the consumer protection enforcement account established in section 312
21a-8a. On June 1, 2004, and each June first thereafter, if the balance in 313
the fund exceeds [seven] six hundred fifty thousand dollars, the excess 314
shall be deposited in the General Fund. 315
(2) Any money in the New Home Construction Guaranty Fund may 316
be invested or reinvested in the same manner as funds of the state 317
employees retirement system and the interest arising from such 318
investments shall be credited to the fund. 319
(d) Whenever a consumer obtains a binding arbitration decision, a 320
court judgment, order or decree against or regarding any new home 321
construction contractor holding a certificate or who has held a certificate 322
under sections 20-417a to 20-417j, inclusive, as amended by this act, or 323
against or regarding any controlling participant, within two years of the 324
date [of entering] such contractor entered into the contract with the 325
consumer, for loss or damages sustained by reason of any violation of 326
the provisions of sections 20-417a to 20-417j, inclusive, as amended by 327
this act, by a person holding a certificate under said sections, such 328
consumer may, upon the final determination of, or expiration of time for 329
taking, an appeal in connection with any such decision, judgment, order 330
or decree, apply to the commissioner for an order directing payment out 331
of the New Home Construction Guaranty Fund of the amount, not 332
exceeding [thirty] fifty thousand dollars, unpaid upon the decision, 333
judgment, order or decree for actual damages and costs taxed by the 334
court against such contractor or controlling participant, exclusive of 335
punitive damages. The application shall be made on forms provided by 336
the commissioner and shall be accompanied by a copy of the decision, 337
court judgment, order or decree obtained against the new home 338
construction contractor or controlling participant together with a 339
statement signed and sworn to by the consumer, affirming that the 340
consumer has: (1) Complied with all the requirements of this subsection; 341
(2) obtained a decision, judgment, order or decree stating the amount of 342
the decision, judgment, order or decree and the amount owing on the 343 Substitute Bill No. 5272
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decision, judgment, order or decree at the date of application; and (3) 344
made a good faith effort to satisfy any such decision, judgment, order or 345
decree in accordance with the provisions of chapter 906 which effort 346
may include causing to be issued a writ of execution upon such decision, 347
judgment, order or decree but the officer executing the same has made 348
a return showing that no bank accounts or personal property of such 349
contractor liable to be levied upon in satisfaction of the decision, 350
judgment, order or decree could be found, or that the amount realized 351
on the sale of them or of such of them as were found, under the 352
execution, was insufficient to satisfy the actual damage portion of the 353
decision, judgment, order or decree or stating the amount realized and 354
the balance remaining due on the decision, judgment, order or decree 355
after application on the decision, judgment, order or decree of the 356
amount realized, except that the requirements of this subdivision shall 357
not apply to a judgment, order or decree obtained by the consumer in 358
small claims court. A true and attested copy of such executing officer's 359
return, when required, shall be attached to such application. Whenever 360
the consumer satisfies the commissioner or the commissioner's designee 361
that it is not practicable to comply with the requirements of subdivision 362
(3) of this subsection and that the consumer has taken all reasonable 363
steps to collect the amount of the decision, judgment, order or decree or 364
the unsatisfied part of the decision, judgment, order or decree and has 365
been unable to collect the same, the commissioner or the commissioner's 366
designee may, in the commissioner's or the commissioner's designee's 367
discretion, dispense with the necessity for complying with such 368
requirement. No application for an order directing payment out of the 369
fund shall be made later than two years from the final determination of, 370
or expiration of time for taking, an appeal of such decision, court 371
judgment, order or decree and no such application shall be for an 372
amount in excess of [thirty] fifty thousand dollars. 373
(e) Upon receipt of such application together with such copy of the 374
decision, court judgment, order or decree, statement and, except as 375
otherwise provided in subsection (d) of this section, a true and attested 376
copy of the executing officer's return, the commissioner or the 377 Substitute Bill No. 5272
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commissioner's designee shall inspect such documents for their veracity 378
and upon a determination that such documents are complete and 379
authentic and that the consumer has not been paid, the commissioner 380
shall order payment out of the New Home Construction Guaranty Fund 381
of the amount not exceeding [thirty] fifty thousand dollars unpaid upon 382
the decision, judgment, order or decree for actual damages and costs 383
taxed by the court against the contractor or controlling participant, 384
exclusive of punitive damages. 385
(f) Beginning October 1, 2000, whenever a consumer is awarded an 386
order of restitution against any new home construction contractor, or a 387
controlling participant, for loss or damages sustained as a result of any 388
violation of the provisions of sections 20-417a to 20-417j, inclusive, as 389
amended by this act, by a person holding a certificate or who has held a 390
certificate under said sections within two years of the date [of entering] 391
such contractor entered into the contract with the consumer, in (1) a 392
proceeding brought by the commissioner pursuant to subsection [(h)] (i) 393
of this section or subsection (d) of section 42-110d, (2) a proceeding 394
brought by the Attorney General pursuant to subsection (a) of section 395
42-110m or subsection (d) of section 42-110d, or (3) a criminal 396
proceeding pursuant to section 20-417e, such consumer may, upon the 397
final determination of, or expiration of time for taking, an appeal in 398
connection with any such order of restitution, apply to the 399
commissioner for an order directing payment out of the New Home 400
Construction Guaranty Fund of the amount not exceeding [thirty] fifty 401
thousand dollars unpaid upon the order of restitution. The 402
commissioner may issue such order upon a determination that the 403
consumer has not been paid. 404
(g) Whenever the commissioner orders payment to a consumer out 405
of the New Home Construction Guaranty Fund based upon a decision, 406
judgment, order or decree of restitution against a controlling 407
participant, both such controlling participant and the new home 408
construction contractor who entered into a contract with such consumer 409
shall be liable for the resulting debt to the New Home Construction 410
Guaranty Fund. 411 Substitute Bill No. 5272
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[(g)] (h) Before the commissioner may issue any order directing 412
payment out of the New Home Construction Guaranty Fund to a 413
consumer pursuant to subsection (e) or (f) of this section, the 414
commissioner shall first notify the new home construction contractor or 415
controlling participant of the consumer's application for an order 416
directing payment out of the fund and of the new home construction 417
contractor's or controlling participant's right to a hearing to contest the 418
disbursement in the event that such contractor or controlling participant 419
has already paid the consumer. Such notice shall be given to the new 420
home construction contractor not later than fifteen days after receipt by 421
the commissioner of the consumer's application for an order directing 422
payment out of the fund. If the new home construction contractor 423
requests a hearing, in writing, by certified mail not later than fifteen 424
days after receiving the notice from the commissioner, the 425
commissioner shall grant such request and shall conduct a hearing in 426
accordance with the provisions of chapter 54. If the commissioner does 427
not receive a written request for a hearing by certified mail from the new 428
home construction contractor on or before the fifteenth day from the 429
contractor's receipt of such notice, the commissioner shall conclude that 430
the consumer has not been paid, and the commissioner shall issue an 431
order directing payment out of the fund for the amount not exceeding 432
[thirty] fifty thousand dollars unpaid upon the judgment, order or 433
decree for actual damages and costs taxed by the court against the new 434
home construction contractor or controlling participant, exclusive of 435
punitive damages, or for the amount not exceeding [thirty] fifty 436
thousand dollars unpaid upon the order of restitution. 437
[(h)] (i) The commissioner or the commissioner's designee may 438
proceed against any new home construction contractor holding a 439
certificate or who has held a certificate under sections 20-417a to 20-417j, 440
inclusive, as amended by this act, within two years of the effective date 441
of entering into the contract with the consumer, or a controlling 442
participant, for an order of restitution arising from loss or damages 443
sustained by any consumer as a result of any violation of the provisions 444
of said sections 20-417a to 20-417j, inclusive, by the contractor or 445 Substitute Bill No. 5272
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controlling participant. Any such proceeding shall be held in accordance 446
with the provisions of chapter 54. In the course of such proceeding, the 447
commissioner or the commissioner's designee shall decide whether to 448
(1) exercise the powers specified in section 20-417c, (2) order restitution 449
arising from loss or damages sustained by any consumer as a result of 450
any violation of the provisions of sections 20-417a to 20-417j, inclusive, 451
as amended by this act, and (3) order payment out of the New Home 452
Construction Guaranty Fund. Notwithstanding the provisions of 453
chapter 54, the decision of the commissioner or the commissioner's 454
designee shall be final with respect to any proceeding to order payment 455
out of the fund and the commissioner and the commissioner's designee 456
shall not be subject to the requirements of chapter 54 as such 457
requirements relate to an appeal from any such decision. The 458
commissioner or the commissioner's designee may hear complaints of 459
all consumers submitting claims against a single new home construction 460
contractor in one proceeding. 461
[(i)] (j) No application for an order directing payment out of the New 462
Home Construction Guaranty Fund shall be made later than two years 463
from the final determination of [, or expiration of time for, an appeal in 464
connection with] any judgment, order or decree of restitution, and no 465
such application shall be for an amount in excess of [thirty] fifty 466
thousand dollars. 467
[(j)] (k) In order to preserve the integrity of the New Home 468
Construction Guaranty Fund, the commissioner, in the commissioner's 469
sole discretion, may order payment out of the fund of an amount less 470
than the actual loss or damages incurred by the consumer or less than 471
the order of restitution awarded by the commissioner or the Superior 472
Court. In no event shall any payment out of the fund be in excess of 473
[thirty] fifty thousand dollars for any single claim by a consumer. 474
[(k)] (l) If the money deposited in the New Home Construction 475
Guaranty Fund is insufficient to satisfy any duly authorized claim or 476
portion of a claim, the commissioner shall, when sufficient money has 477
been deposited in the fund, satisfy such unpaid claims or portions of 478 Substitute Bill No. 5272
LCO 16 of 17
claims not exceeding [thirty] fifty thousand dollars, in the order that 479
such claims or portions of claims were originally determined. 480
[(l)] (m) Whenever the commissioner has caused any sum to be paid 481
from the New Home Construction Guaranty Fund to a consumer, the 482
commissioner shall be subrogated to all of the rights of the consumer up 483
to the amount paid plus reasonable interest, and prior to receipt of any 484
payment from the fund, the consumer shall assign all of the consumer's 485
right, title and interest in the claim up to such amount to the 486
commissioner, and any amount and interest recovered by the 487
commissioner on the claim shall be deposited in the fund. 488
[(m)] (n) If the commissioner orders the payment of any amount as a 489
result of a claim against a new home construction contractor, or a 490
controlling participant, the commissioner shall determine if such 491
contractor or controlling participant is possessed of assets liable to be 492
sold or applied in satisfaction of the claim on the New Home 493
Construction Guaranty Fund. If the commissioner discovers any such 494
assets, the commissioner may request that the Attorney General take 495
any action necessary for the reimbursement of the fund. 496
[(n)] (o) If the commissioner orders the payment of an amount as a 497
result of a claim against a new home construction contractor, or a 498
controlling participant, the commissioner may, after notice and hearing 499
in accordance with the provisions of chapter 54, revoke the certificate of 500
such contractor and such contractor shall not be eligible to receive a new 501
or renewed certificate until such contractor has repaid such amount in 502
full, plus interest from the time such payment is made from the New 503
Home Construction Guaranty Fund, at a rate to be in accordance with 504
section 37-3b, except that the commissioner may, in the commissioner's 505
sole discretion, permit a new home construction contractor to receive a 506
new or renewed certificate after such contractor has entered into an 507
agreement with the commissioner whereby such contractor agrees to 508
repay the fund in full in the form of periodic payments over a set period 509
of time. Any such agreement shall include a provision providing for the 510
summary suspension of any and all certificates held by the new home 511 Substitute Bill No. 5272
LCO 17 of 17
construction contractor if payment is not made in accordance with the 512
terms of the agreement. 513
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 October 1, 2024 20-417a
Sec. 9 July 1, 2024, and effective
for fiscal years
commencing on or after
July 1, 2024
20-417i(c) to (n)
PD Joint Favorable Subst.
APP Joint Favorable