CT
Connecticut House Bill HB05272

Connecticut 2024 Regular Session

Connecticut House Bill HB05272 Compare Versions

OldNewDifferences
11
22
33 LCO 1 of 17
44
55 General Assembly Substitute Bill No. 5272
66 February Session, 2024
77
88
99
1010
1111
1212 AN ACT CONCERNING THE EXPIRATION OF CERTAIN LAND USE
1313 APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY
1414 FUND.
1515 Be it enacted by the Senate and House of Representatives in General
1616 Assembly convened:
1717
1818 Section 1. Subsection (m) of section 8-3 of the 2024 supplement to the 1
1919 general statutes is repealed and the following is substituted in lieu 2
2020 thereof (Effective from passage): 3
2121 (m) (1) Notwithstanding the provisions of this section, any site plan 4
2222 approval made under this section [prior to July 1, 2011] on or before June 5
2323 10, 2021, that has not expired [prior to] on or before July 12, 2021, except 6
2424 an approval made under subsection (j) of this section or as provided in 7
2525 subdivision (2) of this subsection, shall expire not less than fourteen 8
2626 years after the date of such approval and the commission may grant one 9
2727 or more extensions of time to complete all or part of the work in 10
2828 connection with such site plan, provided no approval, including all 11
2929 extensions, shall be valid for more than nineteen years from the date the 12
3030 site plan was approved. 13
3131 (2) Notwithstanding the provisions of this section, a commission that 14
3232 has granted any site plan approval [made] under this section [on or after 15
3333 July 1, 2011, but prior to June 10, 2021, that did not expire prior to March 16
3434 10, 2020, except an approval made under subsection (j) of this section, 17 Substitute Bill No. 5272
3535
3636
3737 LCO 2 of 17
3838
3939 shall expire not less than fourteen years after the date of such approval 18
4040 and the commission may grant one or more extensions of time to 19
4141 complete all or part of the work in connection with such site plan, 20
4242 provided no approval, including all extensions, shall be valid for more 21
4343 than nineteen years from the date the site plan was approved] on or 22
4444 before June 10, 2021, that has not expired on or before July 12, 2021, may, 23
4545 by affirmative vote of the commission, set an earlier date upon which 24
4646 such approval shall expire, provided the commission (A) holds a public 25
4747 hearing on such proposed earlier date in accordance with the provisions 26
4848 of section 8-7d, and (B) finds that (i) because of incomplete or 27
4949 substandard work undertaken in connection with the site plan 28
5050 approval, a condition exists that poses a significant hazard to the public, 29
5151 or (ii) no work required in connection with the site plan approval has 30
5252 been performed in the previous five years. 31
5353 Sec. 2. Subsection (e) of section 8-26c of the general statutes is 32
5454 repealed and the following is substituted in lieu thereof (Effective from 33
5555 passage): 34
5656 (e) (1) Notwithstanding the provisions of this section, any 35
5757 subdivision approval made under this section [prior to July 1, 2011] on 36
5858 or before June 10, 2021, that has not expired [prior to] on or before July 37
5959 12, 2021, except as provided in subdivision (2) of this subsection, shall 38
6060 expire not less than fourteen years after the date of such approval and 39
6161 the commission may grant one or more extensions of time to complete 40
6262 all or part of the work in connection with such subdivision, provided no 41
6363 subdivision approval, including all extensions, shall be valid for more 42
6464 than nineteen years from the date the subdivision was approved. 43
6565 (2) Notwithstanding the provisions of this section, a commission that 44
6666 has granted any subdivision approval [made] under this section [on or 45
6767 after July 1, 2011, but prior to June 10, 2021, that did not expire prior to 46
6868 March 10, 2020, shall expire not less than fourteen years after the date of 47
6969 such approval and the commission may grant one or more extensions of 48
7070 time to complete all or part of the work in connection with such 49
7171 subdivision, provided no subdivision approval, including all 50 Substitute Bill No. 5272
7272
7373
7474 LCO 3 of 17
7575
7676 extensions, shall be valid for more than nineteen years from the date the 51
7777 subdivision was approved] on or before June 10, 2021, that has not 52
7878 expired on or before July 12, 2021, may, by affirmative vote of the 53
7979 commission, set an earlier date upon which such approval shall expire, 54
8080 provided the commission (A) holds a public hearing on such proposed 55
8181 earlier date in accordance with the provisions of section 8-7d, and (B) 56
8282 finds that (i) because of incomplete or substandard work undertaken in 57
8383 connection with the approval, a condition exists that poses a significant 58
8484 hazard to the public, or (ii) no work required in connection with the 59
8585 approval has been performed in the previous five years. 60
8686 Sec. 3. Subsection (c) of section 8-26g of the general statutes is 61
8787 repealed and the following is substituted in lieu thereof (Effective from 62
8888 passage): 63
8989 (c) (1) Notwithstanding the provisions of this section, for any 64
9090 subdivision of land for a project consisting of four hundred or more 65
9191 dwelling units and approved [prior to July 1, 2011] on or before June 10, 66
9292 2021, that has not expired [prior to] on or before July 12, 2021, except as 67
9393 provided in subdivision (2) of this subsection, any person, firm or 68
9494 corporation making such subdivision shall complete all work in 69
9595 connection with such subdivision not later than the date nineteen years 70
9696 after the date of approval of the plan for such subdivision. The 71
9797 commission's endorsement of approval on the plan shall state the date 72
9898 on which such nineteen-year period expires. 73
9999 (2) Notwithstanding the provisions of this section, a commission that 74
100100 has granted approval for any subdivision of land for a project consisting 75
101101 of four hundred or more dwelling units [and approved on or after July 76
102102 1, 2011, but prior to June 10, 2021, that did not expire prior to March 10, 77
103103 2020, any person, firm or corporation making such subdivision shall 78
104104 complete all work in connection with such subdivision not later than the 79
105105 date nineteen years after the date of approval of the plan for such 80
106106 subdivision. The commission's endorsement of approval on the plan 81
107107 shall state the date on which such nineteen-year period expires] on or 82
108108 before June 10, 2021, that has not expired on or before July 12, 2021, may, 83 Substitute Bill No. 5272
109109
110110
111111 LCO 4 of 17
112112
113113 by affirmative vote of the commission, set an earlier date upon which 84
114114 such approval shall expire, provided the commission (A) holds a public 85
115115 hearing on such proposed earlier date in accordance with the provisions 86
116116 of section 8-7d, and (B) finds that (i) because of incomplete or 87
117117 substandard work undertaken in connection with the approval, a 88
118118 condition exists that poses a significant hazard to the public, or (ii) no 89
119119 work required in connection with the approval has been performed in 90
120120 the previous five years. 91
121121 Sec. 4. Subsection (g) of section 22a-42a of the general statutes is 92
122122 repealed and the following is substituted in lieu thereof (Effective from 93
123123 passage): 94
124124 (g) (1) Notwithstanding the provisions of subdivision (2) of 95
125125 subsection (d) of this section, any permit issued under this section [prior 96
126126 to July 1, 2011] on or before June 10, 2021, that has not expired [prior to] 97
127127 on or before July 12, 2021, except as provided in subdivision (2) of this 98
128128 subsection, shall expire not less than fourteen years after the date of such 99
129129 approval. Any such permit shall be renewed upon request of the permit 100
130130 holder unless the agency finds that there has been a substantial change 101
131131 in circumstances that requires a new permit application or an 102
132132 enforcement action has been undertaken with regard to the regulated 103
133133 activity for which the permit was issued, provided no such permit shall 104
134134 be valid for more than nineteen years. 105
135135 (2) Notwithstanding the provisions of subdivision (2) of subsection 106
136136 (d) of this section, an inland wetlands agency that has issued any permit 107
137137 [issued] under this section on or [after July 1, 2011, but prior to June 10, 108
138138 2021, that did not expire prior to March 10, 2020, shall expire not less 109
139139 than fourteen years after the date of such approval] before June 10, 2021, 110
140140 that has not expired on or before July 12, 2021, may, by affirmative vote 111
141141 of such agency, set an earlier date upon which such permit shall expire, 112
142142 provided the agency (A) holds a public hearing on such proposed earlier 113
143143 date in accordance with the provisions of section 8-7d, and (B) finds that 114
144144 (i) because of incomplete or substandard work undertaken in 115
145145 connection with the permit, a condition exists that poses a significant 116 Substitute Bill No. 5272
146146
147147
148148 LCO 5 of 17
149149
150150 hazard to the public, or (ii) no work required in connection with the 117
151151 permit has been performed in the previous five years. Any such permit 118
152152 shall be renewed upon request of the permit holder unless the agency 119
153153 finds that there has been a substantial change in circumstances that 120
154154 requires a new permit application or an enforcement action has been 121
155155 undertaken with regard to the regulated activity for which the permit 122
156156 was issued, provided no such permit shall be valid for more than 123
157157 nineteen years. 124
158158 Sec. 5. Subsection (c) of section 8-3c of the general statutes is repealed 125
159159 and the following is substituted in lieu thereof (Effective from passage): 126
160160 (c) (1) Notwithstanding the provisions of subsections (a) and (b) of 127
161161 this section, any special permit or special exception approval made 128
162162 under this section [prior to July 1, 2011] on or before June 10, 2021, that 129
163163 has not expired [prior to] on or before July 12, 2021, except as provided 130
164164 in subdivision (2) of this subsection, and that specified a deadline by 131
165165 which all work in connection with such approval is required to be 132
166166 completed, shall expire not less than nineteen years after the date of such 133
167167 approval and the commission may grant one or more extensions of time 134
168168 to complete all or part of the work in connection with such special 135
169169 permit or special exception. 136
170170 (2) Notwithstanding the provisions of subsections (a) and (b) of this 137
171171 section, a commission that has granted any special permit or special 138
172172 exception approval [made] under this section on or [after July 1, 2011, 139
173173 but prior to June 10, 2021, that did not expire prior to March 10, 2020, 140
174174 and that specified a deadline by which all work in connection with such 141
175175 approval is required to be completed, shall expire not less than nineteen 142
176176 years after the date of such approval and the commission may grant one 143
177177 or more extensions of time to complete all or part of the work in 144
178178 connection with such special permit or special exception] before June 10, 145
179179 2021, that has not expired on or before July 12, 2021, may, by affirmative 146
180180 vote of the commission, set an earlier date upon which such permit or 147
181181 approval shall expire, provided the commission (A) holds a public 148
182182 hearing on such proposed earlier date in accordance with the provisions 149 Substitute Bill No. 5272
183183
184184
185185 LCO 6 of 17
186186
187187 of section 8-7d, and (B) finds that (i) because of incomplete or 150
188188 substandard work undertaken in connection with the permit or 151
189189 approval, a condition exists that poses a significant hazard to the public, 152
190190 or (ii) no work required in connection with the permit or approval has 153
191191 been performed in the previous five years. 154
192192 Sec. 6. Subsection (b) of section 8-26e of the general statutes is 155
193193 repealed and the following is substituted in lieu thereof (Effective from 156
194194 passage): 157
195195 (b) (1) Notwithstanding the provisions of subsection (a) of this 158
196196 section, any special permit or special exception approval made under 159
197197 this section [prior to July 1, 2011] on or before June 10, 2021, that has not 160
198198 expired [prior to] on or before July 12, 2021, and that specified a deadline 161
199199 by which all work in connection with such approval is required to be 162
200200 completed, except as provided in subdivision (2) of this subsection, shall 163
201201 expire not less than nineteen years after the date of such approval and 164
202202 the commission may grant one or more extensions of time to complete 165
203203 all or part of the work in connection with such special permit or special 166
204204 exception. 167
205205 (2) Notwithstanding the provisions of subsection (a) of this section, a 168
206206 commission that has granted any special permit or special exception 169
207207 approval [made] under this section on or [after July 1, 2011, but prior to 170
208208 June 10, 2021, that did not expire prior to March 10, 2020, and that 171
209209 specified a deadline by which all work in connection with such approval 172
210210 is required to be completed, shall expire not less than nineteen years 173
211211 after the date of such approval and the commission may grant one or 174
212212 more extensions of time to complete all or part of the work in connection 175
213213 with such special permit or special exception] before June 10, 2021, that 176
214214 has not expired on or before July 12, 2021, may, by affirmative vote of 177
215215 the commission, set an earlier date upon which such permit or approval 178
216216 shall expire, provided the commission (A) holds a public hearing on 179
217217 such proposed earlier date in accordance with the provisions of section 180
218218 8-7d, and (B) finds that (i) because of incomplete or substandard work 181
219219 undertaken in connection with the permit or approval, a condition exists 182 Substitute Bill No. 5272
220220
221221
222222 LCO 7 of 17
223223
224224 that poses a significant hazard to the public, or (ii) no work required in 183
225225 connection with the permit or approval has been performed in the 184
226226 previous five years. 185
227227 Sec. 7. Section 8-3k of the general statutes is repealed and the 186
228228 following is substituted in lieu thereof (Effective from passage): 187
229229 (a) (1) Notwithstanding the provisions of any special act, any site 188
230230 plan, subdivision or permit approval by a zoning commission, planning 189
231231 commission, combined planning and zoning commission, zoning board 190
232232 of appeals or inland wetlands agency pursuant to the provisions of any 191
233233 such special act that occurred [prior to July 1, 2011] on or before June 10, 192
234234 2021, and that has not expired [prior to] on or before July 12, 2021, except 193
235235 as provided in subdivision (2) of this subsection, shall expire not less 194
236236 than fourteen years after the date of such approval and such 195
237237 commission, board or agency, as applicable, may grant one or more 196
238238 extensions of time to complete all or part of the work in connection with 197
239239 such approval, provided no approval, including all extensions, shall be 198
240240 valid for more than nineteen years from the date the site plan, 199
241241 subdivision or permit was initially approved. 200
242242 (2) Notwithstanding the provisions of any special act, a zoning 201
243243 commission, planning commission, combined planning and zoning 202
244244 commission, zoning board of appeals or inland wetlands agency that 203
245245 has approved any site plan, subdivision or permit [approval by a zoning 204
246246 commission, planning commission, combined planning and zoning 205
247247 commission, zoning board of appeals or inland wetlands agency] 206
248248 pursuant to the provisions of any such special act [that] when such 207
249249 approval occurred on or [after July 1, 2011, but prior to July 10, 2021, 208
250250 and that did not expire prior to March 10, 2020, shall expire not less than 209
251251 fourteen years after the date of such approval and such commission, 210
252252 board or agency, as applicable, may grant one or more extensions of 211
253253 time to complete all or part of the work in connection with such 212
254254 approval, provided no approval, including all extensions, shall be valid 213
255255 for more than nineteen years from the date the site plan, subdivision or 214
256256 permit was initially approved] before June 10, 2021, and has not expired 215 Substitute Bill No. 5272
257257
258258
259259 LCO 8 of 17
260260
261261 on or before July 12, 2021, may, by affirmative vote of the zoning 216
262262 commission, planning commission, combined planning and zoning 217
263263 commission, zoning board of appeals or inland wetlands agency, set an 218
264264 earlier date upon which such approval shall expire, provided such 219
265265 commission, board or agency (A) holds a public hearing on such 220
266266 proposed earlier date in accordance with the provisions of section 8-7d, 221
267267 and (B) finds that (i) because of incomplete or substandard work 222
268268 undertaken in connection with the approval, a condition exists that 223
269269 poses a significant hazard to the public, or (ii) no work required in 224
270270 connection with the approval has been performed in the previous five 225
271271 years. 226
272272 (b) (1) Notwithstanding the provisions of any special act, any special 227
273273 permit or special exception approval by a zoning commission, planning 228
274274 commission, combined planning and zoning commission, zoning board 229
275275 of appeals or inland wetlands agency pursuant to the provisions of any 230
276276 such special act that occurred [prior to July 1, 2011] on or before June 10, 231
277277 2021, that has not expired [prior to] on or before July 12, 2021, and that 232
278278 specified a deadline by which all work in connection with such approval 233
279279 is required to be completed, except as provided in subdivision (2) of this 234
280280 subsection, shall expire not less than nineteen years after the date of 235
281281 such approval and such commission, board or agency, as applicable, 236
282282 may grant one or more extensions of time to complete all or part of the 237
283283 work in connection with such special permit or special exception 238
284284 approval. 239
285285 (2) Notwithstanding the provisions of any special act, a zoning 240
286286 commission, planning commission, combined planning and zoning 241
287287 commission, zoning board of appeals or inland wetlands agency that 242
288288 has approved any special permit or special exception [approval by a 243
289289 zoning commission, planning commission, combined planning and 244
290290 zoning commission, zoning board of appeals or inland wetlands 245
291291 agency] pursuant to the provisions of any such special act [that] when 246
292292 such approval occurred on or [after July 1, 2011, but prior to June 10, 247
293293 2021, that did not expire prior to March 10, 2020, and that specified a 248
294294 deadline by which all work in connection with such approval is required 249 Substitute Bill No. 5272
295295
296296
297297 LCO 9 of 17
298298
299299 to be completed, shall expire not less than nineteen years after the date 250
300300 of such approval and such commission, board or agency, as applicable, 251
301301 may grant one or more extensions of time to complete all or part of the 252
302302 work in connection with such special permit or special exception 253
303303 approval] before June 10, 2021, and has not expired on or before July 12, 254
304304 2021, may, by affirmative vote of the zoning commission, planning 255
305305 commission, combined planning and zoning commission, zoning board 256
306306 of appeals or inland wetlands agency, set an earlier date upon which 257
307307 such approval shall expire, provided such commission, board or agency 258
308308 (A) holds a public hearing on such proposed earlier date in accordance 259
309309 with the provisions of section 8-7d, and (B) finds that (i) because of 260
310310 incomplete or substandard work undertaken in connection with the 261
311311 approval, a condition exists that poses a significant hazard to the public, 262
312312 or (ii) no work required in connection with the approval has been 263
313313 performed in the previous five years. 264
314314 Sec. 8. Section 20-417a of the general statutes is repealed and the 265
315315 following is substituted in lieu thereof (Effective October 1, 2024): 266
316316 As used in this section and sections 20-417b to 20-417j, inclusive: 267
317317 (1) "Certificate" means a certificate of registration issued under 268
318318 section 20-417b; 269
319319 (2) "Commissioner" means the Commissioner of Consumer 270
320320 Protection or any person designated by the commissioner to administer 271
321321 and enforce this section and sections 20-417b to 20-417j, inclusive; 272
322322 (3) "Contract" means any agreement between a new home 273
323323 construction contractor and a consumer for the construction or sale of a 274
324324 new home or any portion of a new home prior to occupancy; 275
325325 (4) "Controlling participant" means an individual who exercises day-276
326326 to-day financial or operational control of a business entity that is a new 277
327327 home construction contractor; 278
328328 [(4)] (5) "Engage in the business" means that the person engages in 279 Substitute Bill No. 5272
329329
330330
331331 LCO 10 of 17
332332
333333 the business for the purpose of compensation or profit; 280
334334 [(5)] (6) "New home construction contractor" means any person who 281
335335 contracts with a consumer to construct or sell a new home or any portion 282
336336 of a new home prior to occupancy; 283
337337 [(6)] (7) "New home" means any newly constructed (A) single-family 284
338338 dwelling unit, (B) dwelling consisting of not more than two units, or (C) 285
339339 unit, common element or limited common element in a condominium, 286
340340 as defined in section 47-68a, or in a common interest community, as 287
341341 defined in section 47-202; 288
342342 [(7)] (8) "Person" means one or more individuals, partnerships, 289
343343 associations, corporations, limited liability companies, business trusts, 290
344344 legal representatives or any organized group of persons; 291
345345 [(8)] (9) "Consumer" means the buyer or prospective buyer, or the 292
346346 buyer's or prospective buyer's heirs or designated representatives, of 293
347347 any new home or the owner of property on which a new home is being 294
348348 or will be constructed regardless of whether such owner obtains a 295
349349 building permit as the owner of the premises affected pursuant to 296
350350 section 29-263; and 297
351351 [(9)] (10) "Completion" means the stage of construction of a new home 298
352352 in which the new home construction contractor is in receipt of the 299
353353 certificate of occupancy for such new home issued by the municipality 300
354354 in which such new home is constructed. 301
355355 Sec. 9. Subsections (c) to (n), inclusive, of section 20-417i of the general 302
356356 statutes are repealed and the following is substituted in lieu thereof 303
357357 (Effective July 1, 2024, and effective for fiscal years commencing on or after 304
358358 July 1, 2024): 305
359359 (c) (1) For fiscal years commencing on or after July 1, 2003, payments 306
360360 received under subsection (b) of this section shall be credited to the New 307
361361 Home Construction Guaranty Fund until the balance in the fund equals 308
362362 [seven] six hundred fifty thousand dollars. Annually, if the balance in 309 Substitute Bill No. 5272
363363
364364
365365 LCO 11 of 17
366366
367367 the fund exceeds [seven] six hundred fifty thousand dollars, the first 310
368368 [three] four hundred thousand dollars of the excess shall be deposited 311
369369 in the consumer protection enforcement account established in section 312
370370 21a-8a. On June 1, 2004, and each June first thereafter, if the balance in 313
371371 the fund exceeds [seven] six hundred fifty thousand dollars, the excess 314
372372 shall be deposited in the General Fund. 315
373373 (2) Any money in the New Home Construction Guaranty Fund may 316
374374 be invested or reinvested in the same manner as funds of the state 317
375375 employees retirement system and the interest arising from such 318
376376 investments shall be credited to the fund. 319
377377 (d) Whenever a consumer obtains a binding arbitration decision, a 320
378378 court judgment, order or decree against or regarding any new home 321
379379 construction contractor holding a certificate or who has held a certificate 322
380380 under sections 20-417a to 20-417j, inclusive, as amended by this act, or 323
381381 against or regarding any controlling participant, within two years of the 324
382382 date [of entering] such contractor entered into the contract with the 325
383383 consumer, for loss or damages sustained by reason of any violation of 326
384384 the provisions of sections 20-417a to 20-417j, inclusive, as amended by 327
385385 this act, by a person holding a certificate under said sections, such 328
386386 consumer may, upon the final determination of, or expiration of time for 329
387387 taking, an appeal in connection with any such decision, judgment, order 330
388388 or decree, apply to the commissioner for an order directing payment out 331
389389 of the New Home Construction Guaranty Fund of the amount, not 332
390390 exceeding [thirty] fifty thousand dollars, unpaid upon the decision, 333
391391 judgment, order or decree for actual damages and costs taxed by the 334
392392 court against such contractor or controlling participant, exclusive of 335
393393 punitive damages. The application shall be made on forms provided by 336
394394 the commissioner and shall be accompanied by a copy of the decision, 337
395395 court judgment, order or decree obtained against the new home 338
396396 construction contractor or controlling participant together with a 339
397397 statement signed and sworn to by the consumer, affirming that the 340
398398 consumer has: (1) Complied with all the requirements of this subsection; 341
399399 (2) obtained a decision, judgment, order or decree stating the amount of 342
400400 the decision, judgment, order or decree and the amount owing on the 343 Substitute Bill No. 5272
401401
402402
403403 LCO 12 of 17
404404
405405 decision, judgment, order or decree at the date of application; and (3) 344
406406 made a good faith effort to satisfy any such decision, judgment, order or 345
407407 decree in accordance with the provisions of chapter 906 which effort 346
408408 may include causing to be issued a writ of execution upon such decision, 347
409409 judgment, order or decree but the officer executing the same has made 348
410410 a return showing that no bank accounts or personal property of such 349
411411 contractor liable to be levied upon in satisfaction of the decision, 350
412412 judgment, order or decree could be found, or that the amount realized 351
413413 on the sale of them or of such of them as were found, under the 352
414414 execution, was insufficient to satisfy the actual damage portion of the 353
415415 decision, judgment, order or decree or stating the amount realized and 354
416416 the balance remaining due on the decision, judgment, order or decree 355
417417 after application on the decision, judgment, order or decree of the 356
418418 amount realized, except that the requirements of this subdivision shall 357
419419 not apply to a judgment, order or decree obtained by the consumer in 358
420420 small claims court. A true and attested copy of such executing officer's 359
421421 return, when required, shall be attached to such application. Whenever 360
422422 the consumer satisfies the commissioner or the commissioner's designee 361
423423 that it is not practicable to comply with the requirements of subdivision 362
424424 (3) of this subsection and that the consumer has taken all reasonable 363
425425 steps to collect the amount of the decision, judgment, order or decree or 364
426426 the unsatisfied part of the decision, judgment, order or decree and has 365
427427 been unable to collect the same, the commissioner or the commissioner's 366
428428 designee may, in the commissioner's or the commissioner's designee's 367
429429 discretion, dispense with the necessity for complying with such 368
430430 requirement. No application for an order directing payment out of the 369
431431 fund shall be made later than two years from the final determination of, 370
432432 or expiration of time for taking, an appeal of such decision, court 371
433433 judgment, order or decree and no such application shall be for an 372
434434 amount in excess of [thirty] fifty thousand dollars. 373
435435 (e) Upon receipt of such application together with such copy of the 374
436436 decision, court judgment, order or decree, statement and, except as 375
437437 otherwise provided in subsection (d) of this section, a true and attested 376
438438 copy of the executing officer's return, the commissioner or the 377 Substitute Bill No. 5272
439439
440440
441441 LCO 13 of 17
442442
443443 commissioner's designee shall inspect such documents for their veracity 378
444444 and upon a determination that such documents are complete and 379
445445 authentic and that the consumer has not been paid, the commissioner 380
446446 shall order payment out of the New Home Construction Guaranty Fund 381
447447 of the amount not exceeding [thirty] fifty thousand dollars unpaid upon 382
448448 the decision, judgment, order or decree for actual damages and costs 383
449449 taxed by the court against the contractor or controlling participant, 384
450450 exclusive of punitive damages. 385
451451 (f) Beginning October 1, 2000, whenever a consumer is awarded an 386
452452 order of restitution against any new home construction contractor, or a 387
453453 controlling participant, for loss or damages sustained as a result of any 388
454454 violation of the provisions of sections 20-417a to 20-417j, inclusive, as 389
455455 amended by this act, by a person holding a certificate or who has held a 390
456456 certificate under said sections within two years of the date [of entering] 391
457457 such contractor entered into the contract with the consumer, in (1) a 392
458458 proceeding brought by the commissioner pursuant to subsection [(h)] (i) 393
459459 of this section or subsection (d) of section 42-110d, (2) a proceeding 394
460460 brought by the Attorney General pursuant to subsection (a) of section 395
461461 42-110m or subsection (d) of section 42-110d, or (3) a criminal 396
462462 proceeding pursuant to section 20-417e, such consumer may, upon the 397
463463 final determination of, or expiration of time for taking, an appeal in 398
464464 connection with any such order of restitution, apply to the 399
465465 commissioner for an order directing payment out of the New Home 400
466466 Construction Guaranty Fund of the amount not exceeding [thirty] fifty 401
467467 thousand dollars unpaid upon the order of restitution. The 402
468468 commissioner may issue such order upon a determination that the 403
469469 consumer has not been paid. 404
470470 (g) Whenever the commissioner orders payment to a consumer out 405
471471 of the New Home Construction Guaranty Fund based upon a decision, 406
472472 judgment, order or decree of restitution against a controlling 407
473473 participant, both such controlling participant and the new home 408
474474 construction contractor who entered into a contract with such consumer 409
475475 shall be liable for the resulting debt to the New Home Construction 410
476476 Guaranty Fund. 411 Substitute Bill No. 5272
477477
478478
479479 LCO 14 of 17
480480
481481 [(g)] (h) Before the commissioner may issue any order directing 412
482482 payment out of the New Home Construction Guaranty Fund to a 413
483483 consumer pursuant to subsection (e) or (f) of this section, the 414
484484 commissioner shall first notify the new home construction contractor or 415
485485 controlling participant of the consumer's application for an order 416
486486 directing payment out of the fund and of the new home construction 417
487487 contractor's or controlling participant's right to a hearing to contest the 418
488488 disbursement in the event that such contractor or controlling participant 419
489489 has already paid the consumer. Such notice shall be given to the new 420
490490 home construction contractor not later than fifteen days after receipt by 421
491491 the commissioner of the consumer's application for an order directing 422
492492 payment out of the fund. If the new home construction contractor 423
493493 requests a hearing, in writing, by certified mail not later than fifteen 424
494494 days after receiving the notice from the commissioner, the 425
495495 commissioner shall grant such request and shall conduct a hearing in 426
496496 accordance with the provisions of chapter 54. If the commissioner does 427
497497 not receive a written request for a hearing by certified mail from the new 428
498498 home construction contractor on or before the fifteenth day from the 429
499499 contractor's receipt of such notice, the commissioner shall conclude that 430
500500 the consumer has not been paid, and the commissioner shall issue an 431
501501 order directing payment out of the fund for the amount not exceeding 432
502502 [thirty] fifty thousand dollars unpaid upon the judgment, order or 433
503503 decree for actual damages and costs taxed by the court against the new 434
504504 home construction contractor or controlling participant, exclusive of 435
505505 punitive damages, or for the amount not exceeding [thirty] fifty 436
506506 thousand dollars unpaid upon the order of restitution. 437
507507 [(h)] (i) The commissioner or the commissioner's designee may 438
508508 proceed against any new home construction contractor holding a 439
509509 certificate or who has held a certificate under sections 20-417a to 20-417j, 440
510510 inclusive, as amended by this act, within two years of the effective date 441
511511 of entering into the contract with the consumer, or a controlling 442
512512 participant, for an order of restitution arising from loss or damages 443
513513 sustained by any consumer as a result of any violation of the provisions 444
514514 of said sections 20-417a to 20-417j, inclusive, by the contractor or 445 Substitute Bill No. 5272
515515
516516
517517 LCO 15 of 17
518518
519519 controlling participant. Any such proceeding shall be held in accordance 446
520520 with the provisions of chapter 54. In the course of such proceeding, the 447
521521 commissioner or the commissioner's designee shall decide whether to 448
522522 (1) exercise the powers specified in section 20-417c, (2) order restitution 449
523523 arising from loss or damages sustained by any consumer as a result of 450
524524 any violation of the provisions of sections 20-417a to 20-417j, inclusive, 451
525525 as amended by this act, and (3) order payment out of the New Home 452
526526 Construction Guaranty Fund. Notwithstanding the provisions of 453
527527 chapter 54, the decision of the commissioner or the commissioner's 454
528528 designee shall be final with respect to any proceeding to order payment 455
529529 out of the fund and the commissioner and the commissioner's designee 456
530530 shall not be subject to the requirements of chapter 54 as such 457
531531 requirements relate to an appeal from any such decision. The 458
532532 commissioner or the commissioner's designee may hear complaints of 459
533533 all consumers submitting claims against a single new home construction 460
534534 contractor in one proceeding. 461
535535 [(i)] (j) No application for an order directing payment out of the New 462
536536 Home Construction Guaranty Fund shall be made later than two years 463
537537 from the final determination of [, or expiration of time for, an appeal in 464
538538 connection with] any judgment, order or decree of restitution, and no 465
539539 such application shall be for an amount in excess of [thirty] fifty 466
540540 thousand dollars. 467
541541 [(j)] (k) In order to preserve the integrity of the New Home 468
542542 Construction Guaranty Fund, the commissioner, in the commissioner's 469
543543 sole discretion, may order payment out of the fund of an amount less 470
544544 than the actual loss or damages incurred by the consumer or less than 471
545545 the order of restitution awarded by the commissioner or the Superior 472
546546 Court. In no event shall any payment out of the fund be in excess of 473
547547 [thirty] fifty thousand dollars for any single claim by a consumer. 474
548548 [(k)] (l) If the money deposited in the New Home Construction 475
549549 Guaranty Fund is insufficient to satisfy any duly authorized claim or 476
550550 portion of a claim, the commissioner shall, when sufficient money has 477
551551 been deposited in the fund, satisfy such unpaid claims or portions of 478 Substitute Bill No. 5272
552552
553553
554554 LCO 16 of 17
555555
556556 claims not exceeding [thirty] fifty thousand dollars, in the order that 479
557557 such claims or portions of claims were originally determined. 480
558558 [(l)] (m) Whenever the commissioner has caused any sum to be paid 481
559559 from the New Home Construction Guaranty Fund to a consumer, the 482
560560 commissioner shall be subrogated to all of the rights of the consumer up 483
561561 to the amount paid plus reasonable interest, and prior to receipt of any 484
562562 payment from the fund, the consumer shall assign all of the consumer's 485
563563 right, title and interest in the claim up to such amount to the 486
564564 commissioner, and any amount and interest recovered by the 487
565565 commissioner on the claim shall be deposited in the fund. 488
566566 [(m)] (n) If the commissioner orders the payment of any amount as a 489
567567 result of a claim against a new home construction contractor, or a 490
568568 controlling participant, the commissioner shall determine if such 491
569569 contractor or controlling participant is possessed of assets liable to be 492
570570 sold or applied in satisfaction of the claim on the New Home 493
571571 Construction Guaranty Fund. If the commissioner discovers any such 494
572572 assets, the commissioner may request that the Attorney General take 495
573573 any action necessary for the reimbursement of the fund. 496
574574 [(n)] (o) If the commissioner orders the payment of an amount as a 497
575575 result of a claim against a new home construction contractor, or a 498
576576 controlling participant, the commissioner may, after notice and hearing 499
577577 in accordance with the provisions of chapter 54, revoke the certificate of 500
578578 such contractor and such contractor shall not be eligible to receive a new 501
579579 or renewed certificate until such contractor has repaid such amount in 502
580580 full, plus interest from the time such payment is made from the New 503
581581 Home Construction Guaranty Fund, at a rate to be in accordance with 504
582582 section 37-3b, except that the commissioner may, in the commissioner's 505
583583 sole discretion, permit a new home construction contractor to receive a 506
584584 new or renewed certificate after such contractor has entered into an 507
585585 agreement with the commissioner whereby such contractor agrees to 508
586586 repay the fund in full in the form of periodic payments over a set period 509
587587 of time. Any such agreement shall include a provision providing for the 510
588588 summary suspension of any and all certificates held by the new home 511 Substitute Bill No. 5272
589589
590590
591591 LCO 17 of 17
592592
593593 construction contractor if payment is not made in accordance with the 512
594594 terms of the agreement. 513
595595 This act shall take effect as follows and shall amend the following
596596 sections:
597597
598598 Section 1 from passage 8-3(m)
599599 Sec. 2 from passage 8-26c(e)
600600 Sec. 3 from passage 8-26g(c)
601601 Sec. 4 from passage 22a-42a(g)
602602 Sec. 5 from passage 8-3c(c)
603603 Sec. 6 from passage 8-26e(b)
604604 Sec. 7 from passage 8-3k
605605 Sec. 8 October 1, 2024 20-417a
606606 Sec. 9 July 1, 2024, and effective
607607 for fiscal years
608608 commencing on or after
609609 July 1, 2024
610610 20-417i(c) to (n)
611611
612612 PD Joint Favorable Subst.
613-APP Joint Favorable
614613