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3 | 3 | | LCO No. 1882 1 of 13 |
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4 | 4 | | |
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5 | 5 | | General Assembly Raised Bill No. 5376 |
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6 | 6 | | February Session, 2024 |
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7 | 7 | | LCO No. 1882 |
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8 | 8 | | |
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9 | 9 | | |
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10 | 10 | | Referred to Committee on INSURANCE AND REAL ESTATE |
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12 | 12 | | |
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13 | 13 | | Introduced by: |
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14 | 14 | | (INS) |
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15 | 15 | | |
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16 | 16 | | |
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17 | 17 | | |
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18 | 18 | | |
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19 | 19 | | AN ACT CONCERNING HOME IMPROVEMENT CONTRACTORS AND |
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20 | 20 | | SALESPERSONS. |
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21 | 21 | | Be it enacted by the Senate and House of Representatives in General |
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22 | 22 | | Assembly convened: |
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23 | 23 | | |
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24 | 24 | | Section 1. Section 20-419 of the 2024 supplement to the general 1 |
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25 | 25 | | statutes is repealed and the following is substituted in lieu thereof 2 |
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26 | 26 | | (Effective October 1, 2024): 3 |
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27 | 27 | | As used in this chapter and section 2 of this act, unless the context 4 |
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28 | 28 | | otherwise requires: 5 |
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29 | 29 | | (1) "Business day" has the same meaning as provided in section 42-6 |
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30 | 30 | | 134a. 7 |
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31 | 31 | | [(1)] (2) "Business entity" means an association, corporation, limited 8 |
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32 | 32 | | liability company, limited liability partnership or partnership. 9 |
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33 | 33 | | [(2)] (3) "Certificate" means a certificate of registration issued under 10 |
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34 | 34 | | section 20-422. 11 |
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35 | 35 | | [(3)] (4) "Commissioner" means (A) the Commissioner of Consumer 12 |
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36 | 36 | | Protection, and (B) any person designated by the commissioner to 13 Raised Bill No. 5376 |
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37 | 37 | | |
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38 | 38 | | |
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39 | 39 | | |
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40 | 40 | | LCO No. 1882 2 of 13 |
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41 | 41 | | |
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42 | 42 | | administer and enforce this chapter. 14 |
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43 | 43 | | [(4)] (5) (A) "Contractor" means any person who (i) owns and operates 15 |
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44 | 44 | | a home improvement business, or (ii) undertakes, offers to undertake or 16 |
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45 | 45 | | agrees to perform any home improvement. 17 |
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46 | 46 | | (B) "Contractor" does not include a person for whom the total price 18 |
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47 | 47 | | of all of such person's home improvement contracts with all of such 19 |
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48 | 48 | | person's customers does not exceed one thousand dollars during any 20 |
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49 | 49 | | period of twelve consecutive months. 21 |
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50 | 50 | | [(5)] (6) (A) "Home improvement" includes, but is not limited to, the 22 |
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51 | 51 | | repair, replacement, remodeling, alteration, conversion, modernization, 23 |
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52 | 52 | | improvement, rehabilitation or sandblasting of, or addition to, any land 24 |
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53 | 53 | | or building or that portion thereof which is used or designed to be used 25 |
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54 | 54 | | as a private residence, dwelling place or residential rental property, or 26 |
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55 | 55 | | the construction, replacement, installation or improvement of alarm 27 |
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56 | 56 | | systems not requiring electrical work, as defined in section 20-330, 28 |
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57 | 57 | | driveways, swimming pools, porches, garages, roofs, siding, insulation, 29 |
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58 | 58 | | sunrooms, flooring, patios, landscaping, fences, doors and windows, 30 |
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59 | 59 | | waterproofing, water, fire or storm restoration or mold remediation in 31 |
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60 | 60 | | connection with such land or building or that portion thereof which is 32 |
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61 | 61 | | used or designed to be used as a private residence, dwelling place or 33 |
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62 | 62 | | residential rental property or the removal or replacement of a residential 34 |
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63 | 63 | | underground heating oil storage tank system, in which the total price 35 |
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64 | 64 | | for all work agreed upon between the contractor and owner or proposed 36 |
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65 | 65 | | or offered by the contractor exceeds two hundred dollars. 37 |
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66 | 66 | | (B) "Home improvement" does not include (i) the construction of a 38 |
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67 | 67 | | new home, (ii) the sale of goods or materials by a seller who neither 39 |
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68 | 68 | | arranges to perform nor performs, directly or indirectly, any work or 40 |
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69 | 69 | | labor in connection with the installation or application of the goods or 41 |
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70 | 70 | | materials, (iii) the sale of goods or services furnished for commercial or 42 |
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71 | 71 | | business use or for resale, provided commercial or business use does not 43 |
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72 | 72 | | include use as residential rental property, (iv) the sale of appliances, 44 |
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73 | 73 | | such as stoves, refrigerators, freezers, room air conditioners and others, 45 Raised Bill No. 5376 |
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74 | 74 | | |
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75 | 75 | | |
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76 | 76 | | |
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77 | 77 | | LCO No. 1882 3 of 13 |
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78 | 78 | | |
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79 | 79 | | which are designed for and are easily removable from the premises 46 |
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80 | 80 | | without material alteration thereof, (v) tree or shrub cutting or the 47 |
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81 | 81 | | grinding of tree stumps, and (vi) any work performed without 48 |
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82 | 82 | | compensation by the owner on such owner's own private residence or 49 |
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83 | 83 | | residential rental property. 50 |
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84 | 84 | | [(6)] (7) "Home improvement contract" means an agreement between 51 |
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85 | 85 | | a contractor and an owner for the performance of a home improvement. 52 |
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86 | 86 | | [(7)] (8) "Owner" means a person who owns or resides in a private 53 |
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87 | 87 | | residence and includes any agent thereof, including, but not limited to, 54 |
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88 | 88 | | a condominium association. An owner of a private residence shall not 55 |
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89 | 89 | | be required to reside in such residence to be deemed an owner under 56 |
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90 | 90 | | this subdivision. 57 |
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91 | 91 | | [(8)] (9) "Person" means an individual or a business entity. 58 |
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92 | 92 | | [(9)] (10) "Private residence" means a single family dwelling, a 59 |
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93 | 93 | | multifamily dwelling consisting of not more than six units, or a unit, 60 |
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94 | 94 | | common element or limited common element in a condominium, as 61 |
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95 | 95 | | defined in section 47-68a, or in a common interest community, as 62 |
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96 | 96 | | defined in section 47-202, or any number of condominium units for 63 |
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97 | 97 | | which a condominium association acts as an agent for such unit owners. 64 |
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98 | 98 | | [(10)] (11) "Salesman" means any individual who (A) negotiates or 65 |
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99 | 99 | | offers to negotiate a home improvement contract with an owner, or (B) 66 |
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100 | 100 | | solicits or otherwise endeavors to procure by any means whatsoever, 67 |
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101 | 101 | | directly or indirectly, a home improvement contract from an owner on 68 |
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102 | 102 | | behalf of a contractor. 69 |
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103 | 103 | | [(11)] (12) "Residential rental property" means a single family 70 |
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104 | 104 | | dwelling, a multifamily dwelling consisting of not more than six units, 71 |
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105 | 105 | | or a unit, common element or limited common element in a 72 |
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106 | 106 | | condominium, as defined in section 47-68a, or in a common interest 73 |
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107 | 107 | | community, as defined in section 47-202, which is not owner-occupied. 74 |
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108 | 108 | | [(12)] (13) "Residential underground heating oil storage tank system" 75 Raised Bill No. 5376 |
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109 | 109 | | |
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110 | 110 | | |
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111 | 111 | | |
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112 | 112 | | LCO No. 1882 4 of 13 |
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113 | 113 | | |
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114 | 114 | | means an underground storage tank system used with or without 76 |
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115 | 115 | | ancillary components in connection with real property composed of 77 |
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116 | 116 | | four or less residential units. 78 |
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117 | 117 | | [(13)] (14) "Underground storage tank system" means an 79 |
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118 | 118 | | underground tank or combination of tanks, with any underground 80 |
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119 | 119 | | pipes or ancillary equipment or containment systems connected to such 81 |
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120 | 120 | | tank or tanks, used to contain an accumulation of petroleum, which 82 |
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121 | 121 | | volume is ten per cent or more beneath the surface of the ground. 83 |
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122 | 122 | | Sec. 2. (NEW) (Effective October 1, 2024) Notwithstanding any 84 |
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123 | 123 | | provision of chapter 400 of the general statutes, no contractor shall: 85 |
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124 | 124 | | (1) Require, as a precondition to entering into or performing home 86 |
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125 | 125 | | improvements under a home improvement contract, an owner to 87 |
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126 | 126 | | deposit with the contractor more than one-half of the total cash price of 88 |
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127 | 127 | | all work to be performed pursuant to a home improvement contract; 89 |
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128 | 128 | | (2) Advertise, offer or promise to provide, directly or indirectly, any 90 |
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129 | 129 | | allowance, compensation, discount, payment or rebate to an owner for 91 |
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130 | 130 | | any portion of the owner's insurance deductible as an inducement for 92 |
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131 | 131 | | such owner to enter into a home improvement contract with such 93 |
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132 | 132 | | contractor; or 94 |
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133 | 133 | | (3) Induce the sale of any goods or services by advertising, offering 95 |
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134 | 134 | | or promising to provide, directly or indirectly, to an owner any 96 |
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135 | 135 | | allowance, bonus, compensation, coupon, credit, discount, fee, gift, 97 |
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136 | 136 | | payment, prize, referral fee, trade-in or trade-in payment. 98 |
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137 | 137 | | Sec. 3. Section 20-420 of the 2024 supplement to the general statutes 99 |
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138 | 138 | | is repealed and the following is substituted in lieu thereof (Effective 100 |
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139 | 139 | | October 1, 2024): 101 |
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140 | 140 | | (a) (1) No person shall hold such person out to be a contractor or 102 |
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141 | 141 | | salesperson without first (A) obtaining a certificate of registration from 103 |
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142 | 142 | | the commissioner as provided in this chapter, except [(1)] (i) that an 104 |
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143 | 143 | | individual or partner, or officer or director of a corporation registered 105 Raised Bill No. 5376 |
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144 | 144 | | |
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145 | 145 | | |
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146 | 146 | | |
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147 | 147 | | LCO No. 1882 5 of 13 |
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148 | 148 | | |
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149 | 149 | | as a contractor shall not be required to obtain a salesperson's certificate, 106 |
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150 | 150 | | and [(2)] (ii) as provided in subsections (e) and (f) of this section, and (B) 107 |
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151 | 151 | | presenting evidence of (i) bodily injury, general liability, property 108 |
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152 | 152 | | damage liability, public liability and workers' compensation insurance 109 |
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153 | 153 | | coverage in amounts prescribed by the commissioner, in consultation 110 |
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154 | 154 | | with the Insurance Commissioner, except as provided in subdivision (3) 111 |
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155 | 155 | | of this subsection, and (ii) any insurance coverage required by federal 112 |
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156 | 156 | | law. 113 |
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157 | 157 | | (2) No certificate shall be given to any person who holds such person 114 |
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158 | 158 | | out to be a contractor that performs radon mitigation unless such 115 |
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159 | 159 | | contractor provides evidence, satisfactory to the commissioner, that the 116 |
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160 | 160 | | contractor is certified as a radon mitigator by the National Radon Safety 117 |
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161 | 161 | | Board or the National Environmental Health Association. 118 |
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162 | 162 | | (3) No certificate shall be given to any person who holds such person 119 |
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163 | 163 | | out to be a contractor that performs removal or replacement of any 120 |
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164 | 164 | | residential underground heating oil storage tank system unless such 121 |
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165 | 165 | | contractor provides evidence, satisfactory to the commissioner, that the 122 |
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166 | 166 | | contractor (A) has completed a hazardous material training program 123 |
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167 | 167 | | approved by the Department of Energy and Environmental Protection, 124 |
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168 | 168 | | and (B) has presented evidence of liability insurance coverage of one 125 |
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169 | 169 | | million dollars. 126 |
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170 | 170 | | (b) No contractor shall employ any salesman to procure business 127 |
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171 | 171 | | from an owner unless the salesman is registered under this chapter. 128 |
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172 | 172 | | (c) No individual shall act as a home improvement salesman for an 129 |
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173 | 173 | | unregistered contractor. 130 |
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174 | 174 | | (d) On and after July 1, 2008, a home improvement contractor shall 131 |
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175 | 175 | | not perform gas hearth product work, as defined in subdivision (22) of 132 |
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176 | 176 | | section 20-330, unless such home improvement contractor holds a 133 |
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177 | 177 | | limited contractor or journeyman gas hearth installer license pursuant 134 |
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178 | 178 | | to section 20-334f. 135 |
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179 | 179 | | (e) A retail establishment, which is a business that operates from a 136 Raised Bill No. 5376 |
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180 | 180 | | |
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181 | 181 | | |
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182 | 182 | | |
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183 | 183 | | LCO No. 1882 6 of 13 |
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184 | 184 | | |
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185 | 185 | | fixed location where goods or services are offered for sale, may apply 137 |
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186 | 186 | | annually for a certificate of registration as a salesperson on behalf of its 138 |
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187 | 187 | | employees if it employs or otherwise compensates one or more 139 |
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188 | 188 | | salespersons whose solicitation, negotiation and completion of sales are 140 |
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189 | 189 | | conducted entirely at the retail establishment or virtually or by phone. 141 |
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190 | 190 | | The retail establishment shall (1) apply for such registration on a form 142 |
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191 | 191 | | prescribed by the commissioner, (2) maintain a list of all salespersons 143 |
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192 | 192 | | intended to be covered by the retailer's certificate of registration, and (3) 144 |
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193 | 193 | | pay a fee equal to the amount that would be due if each person were to 145 |
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194 | 194 | | apply individually for a certificate of registration, including the amount 146 |
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195 | 195 | | that would be due under the guaranty fund. The list of salespersons 147 |
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196 | 196 | | covered by the retailer's certificate of registration shall be made 148 |
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197 | 197 | | available to the department upon request. If any person covered by the 149 |
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198 | 198 | | retail establishment's salesperson certificate of registration conducts 150 |
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199 | 199 | | activity covered by the salesperson credential at a place other than the 151 |
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200 | 200 | | retail establishment or virtually or by phone, such person shall apply for 152 |
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201 | 201 | | an individual salesperson certificate of registration using the form 153 |
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202 | 202 | | prescribed by the commissioner for such registrations and shall pay the 154 |
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203 | 203 | | corresponding application fee. 155 |
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204 | 204 | | (f) Certificates of registration for salespersons issued to retail 156 |
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205 | 205 | | establishments shall not be transferable or assignable, except a retail 157 |
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206 | 206 | | establishment that is a holder of a salesperson certificate may remove an 158 |
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207 | 207 | | existing or former employee currently listed on the certification of 159 |
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208 | 208 | | registration and replace such person with a new or existing employee 160 |
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209 | 209 | | employed as a salesperson. If the retail establishment adds or removes 161 |
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210 | 210 | | salespeople, there shall be no refund or supplemental payment. The fee 162 |
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211 | 211 | | shall be based on the number of salespeople at the time of each renewal. 163 |
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212 | 212 | | (g) A contractor or salesperson shall update, through the 164 |
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213 | 213 | | department's online licensing system, any application information the 165 |
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214 | 214 | | contractor or salesperson has provided to the department pursuant to 166 |
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215 | 215 | | this section, including, but not limited to, any contact information, 167 |
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216 | 216 | | including, but not limited to, a change in business or trade name, or 168 |
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217 | 217 | | residence address or business address for such contractor or 169 |
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218 | 218 | | salesperson, insurance information or criminal history for such 170 Raised Bill No. 5376 |
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219 | 219 | | |
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220 | 220 | | |
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221 | 221 | | |
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222 | 222 | | LCO No. 1882 7 of 13 |
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223 | 223 | | |
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224 | 224 | | contractor or salesperson, or, if such contractor is a business entity, 171 |
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225 | 225 | | criminal histories of the individual owners of such business entity, not 172 |
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226 | 226 | | later than thirty days after any change in such information. 173 |
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227 | 227 | | Sec. 4. Subsection (a) of section 20-421 of the 2024 supplement to the 174 |
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228 | 228 | | general statutes is repealed and the following is substituted in lieu 175 |
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229 | 229 | | thereof (Effective October 1, 2024): 176 |
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230 | 230 | | (a) Any person seeking a certificate of registration shall apply to the 177 |
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231 | 231 | | commissioner online, on a form provided by the commissioner. The 178 |
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232 | 232 | | application shall include: 179 |
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233 | 233 | | (1) [the] The applicant's name [, residence address, business address, 180 |
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234 | 234 | | business telephone number and electronic mail address,] and trade 181 |
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235 | 235 | | name, if the applicant is a natural person, or business name, if the 182 |
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236 | 236 | | applicant is not a natural person; 183 |
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237 | 237 | | (2) The applicant's residence address, if the applicant is a natural 184 |
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238 | 238 | | person, or business address, if the applicant is not a natural person; 185 |
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239 | 239 | | (3) The applicant's business telephone number, electronic mail 186 |
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240 | 240 | | address and Internet web site address; 187 |
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241 | 241 | | (4) The applicant's Social Security number, if the applicant is a natural 188 |
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242 | 242 | | person, or federal employer identification number, if the applicant is not 189 |
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243 | 243 | | a natural person; 190 |
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244 | 244 | | (5) For each affiliate, partner, subsidiary or trustee of the applicant, 191 |
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245 | 245 | | the name, trade name and residence address, or business name and 192 |
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246 | 246 | | business address, of such affiliate, partner, subsidiary or trustee of the 193 |
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247 | 247 | | applicant; 194 |
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248 | 248 | | (6) If the applicant is not a natural person, the name and residence 195 |
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249 | 249 | | address of each director, officer or principal shareholder of such 196 |
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250 | 250 | | applicant; 197 |
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251 | 251 | | (7) A statement, signed and sworn to by the applicant, disclosing 198 |
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252 | 252 | | whether (A) the applicant previously held a certificate of registration 199 Raised Bill No. 5376 |
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253 | 253 | | |
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254 | 254 | | |
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255 | 255 | | |
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256 | 256 | | LCO No. 1882 8 of 13 |
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257 | 257 | | |
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258 | 258 | | and, if the applicant previously held such a certificate, (i) the name by 200 |
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259 | 259 | | which such applicant held such certificate, and (ii) whether such 201 |
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260 | 260 | | certificate was suspended or revoked, and (B) any judgment or 202 |
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261 | 261 | | arbitration award has been entered against the applicant; 203 |
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262 | 262 | | [(2) a] (8) A statement by the applicant disclosing whether the 204 |
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263 | 263 | | applicant has been found guilty or convicted as a result of an act which 205 |
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264 | 264 | | (A) constitutes a felony under the laws of this state or federal law, or (B) 206 |
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265 | 265 | | was committed in another jurisdiction but, if committed in this state, 207 |
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266 | 266 | | would constitute a felony under the laws of this state; [,] 208 |
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267 | 267 | | [(3) proof] (9) Proof that the applicant has obtained (A) general 209 |
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268 | 268 | | liability insurance coverage in an amount not less than twenty thousand 210 |
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269 | 269 | | dollars, demonstrated by providing the policy number and business 211 |
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270 | 270 | | name of the insurance provider, (B) bodily injury liability, property 212 |
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271 | 271 | | damage liability, public liability and workers' compensation insurance 213 |
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272 | 272 | | coverage in amounts prescribed by the commissioner, in consultation 214 |
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273 | 273 | | with the Insurance Commissioner, and (C) any insurance coverage 215 |
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274 | 274 | | required by federal law; and 216 |
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275 | 275 | | [(4) such] (10) Such other information as the commissioner may 217 |
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276 | 276 | | require. 218 |
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277 | 277 | | Sec. 5. Subsection (a) of section 20-426 of the 2024 supplement to the 219 |
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278 | 278 | | general statutes is repealed and the following is substituted in lieu 220 |
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279 | 279 | | thereof (Effective October 1, 2024): 221 |
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280 | 280 | | (a) The commissioner may revoke, suspend or refuse to issue or 222 |
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281 | 281 | | renew any certificate of registration as a home improvement contractor 223 |
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282 | 282 | | or salesperson or place a registrant on probation or issue a letter of 224 |
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283 | 283 | | reprimand (1) for conduct of a character likely to mislead, deceive or 225 |
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284 | 284 | | defraud the public or the commissioner, (2) for engaging in any 226 |
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285 | 285 | | untruthful or misleading advertising, (3) for failing to reimburse the 227 |
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286 | 286 | | guaranty fund established pursuant to section 20-432 for any moneys 228 |
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287 | 287 | | paid to an owner pursuant to subsection (o) of section 20-432, (4) for 229 |
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288 | 288 | | unfair or deceptive business practices, (5) subject to section 46a-80, 230 |
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289 | 289 | | based on a felony conviction of an individual registrant or an individual 231 Raised Bill No. 5376 |
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290 | 290 | | |
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291 | 291 | | |
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292 | 292 | | |
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293 | 293 | | LCO No. 1882 9 of 13 |
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294 | 294 | | |
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295 | 295 | | owner of a registrant that is a business entity, [; or] (6) for violation of 232 |
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296 | 296 | | any of the provisions of the general statutes relating to home 233 |
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297 | 297 | | improvements or any regulation adopted pursuant to any of such 234 |
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298 | 298 | | provisions, (7) for gross malpractice or incompetence, as determined by 235 |
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299 | 299 | | the commissioner in accordance with the provisions of chapter 54, (8) 236 |
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300 | 300 | | for failing to maintain insurance coverage required under subsection (a) 237 |
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301 | 301 | | of section 20-420, as amended by this act, or (9) for failing to pay any 238 |
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302 | 302 | | taxes or fees due and owing to the state. The commissioner may refuse 239 |
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303 | 303 | | to issue or renew any certificate of registration as a home improvement 240 |
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304 | 304 | | contractor or salesperson of any person subject to the registration 241 |
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305 | 305 | | requirements of chapter 969. 242 |
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306 | 306 | | Sec. 6. Section 20-429 of the general statutes is repealed and the 243 |
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307 | 307 | | following is substituted in lieu thereof (Effective October 1, 2024): 244 |
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308 | 308 | | (a) (1) (A) No home improvement contract shall be valid or 245 |
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309 | 309 | | enforceable against an owner unless it: (i) Is in writing, (ii) is signed by 246 |
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310 | 310 | | the owner and the contractor, (iii) contains the entire agreement 247 |
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311 | 311 | | between the owner and the contractor, (iv) contains an itemized list and 248 |
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312 | 312 | | description of all home improvements to be performed pursuant to the 249 |
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313 | 313 | | contract, (v) contains the cash price of each home improvement to be 250 |
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314 | 314 | | performed pursuant to the contract, (vi) contains a reasonable estimate 251 |
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315 | 315 | | by the contractor of the total cash price of all home improvements to be 252 |
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316 | 316 | | performed pursuant to the contract, [(iv)] (vii) contains the date of the 253 |
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317 | 317 | | transaction, [(v) contains the name and address of the contractor and the 254 |
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318 | 318 | | contractor's registration number, (vi)] (viii) contains the contractor's full 255 |
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319 | 319 | | legal name, business and trade names, residence or business address, 256 |
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320 | 320 | | business telephone number, business electronic mail address and 257 |
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321 | 321 | | registration number, (ix) contains the information required by 258 |
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322 | 322 | | subparagraph (A)(viii) of this subdivision for each person who will 259 |
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323 | 323 | | perform any home improvements described in the contract in such 260 |
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324 | 324 | | person's capacity as a day laborer, independent contractor or 261 |
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325 | 325 | | subcontractor, (x) contains a notice of the owner's cancellation rights in 262 |
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326 | 326 | | accordance with the provisions of chapter 740, (xi) contains a notice of 263 |
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327 | 327 | | the owner's cancellation rights in accordance with subparagraph (B) of 264 |
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328 | 328 | | this subdivision, (xii) contains not fewer than two cancellation forms in 265 Raised Bill No. 5376 |
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329 | 329 | | |
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330 | 330 | | |
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331 | 331 | | |
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332 | 332 | | LCO No. 1882 10 of 13 |
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333 | 333 | | |
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334 | 334 | | accordance with subparagraph (B) of this subdivision, [(vii)] (xiii) 266 |
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335 | 335 | | contains a starting date and completion date, [(viii)] (xiv) is entered into 267 |
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336 | 336 | | by a registered salesman or registered contractor, [and (ix)] (xv) includes 268 |
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337 | 337 | | a provision disclosing each corporation, limited liability company, 269 |
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338 | 338 | | partnership, sole proprietorship or other legal entity, which is or has 270 |
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339 | 339 | | been a home improvement contractor pursuant to the provisions of this 271 |
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340 | 340 | | chapter or a new home construction contractor pursuant to the 272 |
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341 | 341 | | provisions of chapter 399a, in which the owner or owners of the home 273 |
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342 | 342 | | improvement contractor are or have been a shareholder, member, 274 |
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343 | 343 | | partner, or owner during the previous five years, (xvi) includes a 275 |
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344 | 344 | | provision disclosing that the contractor maintains the insurance 276 |
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345 | 345 | | coverage required under subsection (a) of section 20-420, as amended 277 |
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346 | 346 | | by this act, the name of each insurer that issued such coverage to the 278 |
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347 | 347 | | contractor and the coverage limits under each policy providing such 279 |
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348 | 348 | | coverage, and (xvii) includes a provision allowing the owner, at the 280 |
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349 | 349 | | owner's discretion, to make payments to the contractor pursuant to the 281 |
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350 | 350 | | contract by cash, check or credit card. 282 |
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351 | 351 | | (B) (i) Each contract shall provide the owner with a right to cancel 283 |
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352 | 352 | | such contract and include a statement, in substantially the following 284 |
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353 | 353 | | form, in not less than ten-point, boldface type located immediately 285 |
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354 | 354 | | above the place provided in such contract for the owner's signature: 286 |
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355 | 355 | | "You may cancel this contract not later than midnight on the third 287 |
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356 | 356 | | business day after both you and the contractor signed this contract or 288 |
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357 | 357 | | you received notice from your insurer denying any part of your claim 289 |
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358 | 358 | | for the cost of the home improvements to be performed pursuant to this 290 |
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359 | 359 | | contract, whichever last occurs. Please see the attached notice of 291 |
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360 | 360 | | cancellation forms for additional information." 292 |
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361 | 361 | | (ii) Each contract shall contain not fewer than two cancellation forms, 293 |
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362 | 362 | | in substantially the following form and in not less than ten-point, 294 |
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363 | 363 | | boldface type, attached to, and easily detachable from, such contract: 295 |
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364 | 364 | | "NOTICE OF CANCELLATION 296 |
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365 | 365 | | You may cancel this contract not later than midnight on the third 297 Raised Bill No. 5376 |
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366 | 366 | | |
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367 | 367 | | |
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368 | 368 | | |
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369 | 369 | | LCO No. 1882 11 of 13 |
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370 | 370 | | |
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371 | 371 | | business day after both you and the contractor sign this contract or you 298 |
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372 | 372 | | receive notice from your insurer denying any part of your claim for the 299 |
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373 | 373 | | cost of the home improvements to be performed pursuant to this 300 |
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374 | 374 | | contract, whichever last occurs. In order to cancel this contract, you 301 |
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375 | 375 | | must sign, date and deliver, mail or electronically mail this notice to 302 |
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376 | 376 | | (insert name of contractor) at (insert principal business address and 303 |
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377 | 377 | | business electronic mail address of contractor) by the end of the three-304 |
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378 | 378 | | day period described in this notice. If you cancel this contract, the 305 |
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379 | 379 | | contractor shall return all payments that you have made to the 306 |
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380 | 380 | | contractor pursuant to this contract, less the reasonable cost of any and 307 |
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381 | 381 | | all home improvements that the contractor performed pursuant to this 308 |
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382 | 382 | | contract prior to cancellation, and cancel the contractor's security 309 |
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383 | 383 | | interest, if any, in any home improvements performed prior to 310 |
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384 | 384 | | cancellation not later than ten business days after the contractor receives 311 |
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385 | 385 | | this notice. You should retain a copy of this notice for your records. 312 |
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386 | 386 | | I HEREBY CANCEL THIS TRANSACTION: 313 |
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387 | 387 | | Signature 314 |
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388 | 388 | | (Insert date)" 315 |
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389 | 389 | | [(B)] (C) Each change in the terms and conditions of a contract shall 316 |
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390 | 390 | | be in writing and shall be signed by the owner and contractor, except 317 |
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391 | 391 | | that the commissioner may, by regulation, dispense with the necessity 318 |
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392 | 392 | | for complying with the requirement that each change in a home 319 |
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393 | 393 | | improvement contract shall be in writing and signed by the owner and 320 |
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394 | 394 | | contractor. 321 |
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395 | 395 | | (2) A contract for repair, remediation or mitigation as set forth in 322 |
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396 | 396 | | section 38a-313a shall conform to the requirements set forth in 323 |
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397 | 397 | | subparagraph (A) of subdivision (1) of this subsection and section 38a-324 |
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398 | 398 | | 313a. 325 |
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399 | 399 | | (b) No home improvement contract shall be valid if it includes any 326 |
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400 | 400 | | provision obligating the owner to instruct the home improvement 327 |
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401 | 401 | | contractor, by a date determined by such contractor, that periodic home 328 Raised Bill No. 5376 |
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402 | 402 | | |
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403 | 403 | | |
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404 | 404 | | |
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405 | 405 | | LCO No. 1882 12 of 13 |
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406 | 406 | | |
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407 | 407 | | improvements are not to be performed unless it also includes a 329 |
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408 | 408 | | provision requiring the contractor to remind the owner of that 330 |
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409 | 409 | | obligation by means of a card or letter mailed to the owner and 331 |
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410 | 410 | | postmarked not earlier than twenty days, and not later than ten days, 332 |
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411 | 411 | | prior to such date. 333 |
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412 | 412 | | (c) The contractor shall provide and deliver to the owner, without 334 |
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413 | 413 | | charge, a completed copy of the home improvement contract at the time 335 |
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414 | 414 | | such contract is executed. 336 |
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415 | 415 | | (d) The commissioner may, by regulation, require the inclusion of 337 |
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416 | 416 | | additional contractual provisions. 338 |
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417 | 417 | | (e) Each home improvement contract entered into shall be considered 339 |
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418 | 418 | | a home solicitation sale pursuant to chapter 740 and shall be subject to 340 |
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419 | 419 | | the requirements of said chapter regardless of the location of the 341 |
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420 | 420 | | transaction or of the signing of the contract. Each home improvement 342 |
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421 | 421 | | contract in which the owner agrees to repay the contractor an amount 343 |
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422 | 422 | | loaned or advanced to the owner by the contractor for the purposes of 344 |
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423 | 423 | | paying for the goods and services provided in such contract, or which 345 |
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424 | 424 | | contains a finance charge, (1) shall set forth the information required to 346 |
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425 | 425 | | be disclosed pursuant to the Truth-in-Lending Act, sections 36a-675 to 347 |
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426 | 426 | | 36a-685, inclusive, (2) shall allow the owner to pay off in advance the 348 |
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427 | 427 | | full amount due and obtain a partial refund of any unearned finance 349 |
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428 | 428 | | charge, and (3) may contain a finance charge set at a rate of not more 350 |
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429 | 429 | | than the rate allowed for loans pursuant to section 37-4. As used in this 351 |
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430 | 430 | | subsection, "finance charge" means the amount in excess of the cash 352 |
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431 | 431 | | price for goods and services under the home improvement contract to 353 |
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432 | 432 | | be paid by the owner for the privilege of paying the contract price in 354 |
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433 | 433 | | installments over a period of time. 355 |
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434 | 434 | | (f) Nothing in this section shall preclude a contractor who has 356 |
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435 | 435 | | complied with subparagraphs (A)(i), (ii), [(vi)] (x), [(vii)] (xiii) and [(viii)] 357 |
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436 | 436 | | (xiv) of subdivision (1) of subsection (a) of this section from the recovery 358 |
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437 | 437 | | of payment for work performed based on the reasonable value of 359 |
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438 | 438 | | services which were requested by the owner, provided the court 360 Raised Bill No. 5376 |
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439 | 439 | | |
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440 | 440 | | |
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441 | 441 | | |
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442 | 442 | | LCO No. 1882 13 of 13 |
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443 | 443 | | |
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444 | 444 | | determines that it would be inequitable to deny such recovery. 361 |
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445 | 445 | | This act shall take effect as follows and shall amend the following |
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446 | 446 | | sections: |
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447 | 447 | | |
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448 | 448 | | Section 1 October 1, 2024 20-419 |
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449 | 449 | | Sec. 2 October 1, 2024 New section |
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450 | 450 | | Sec. 3 October 1, 2024 20-420 |
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451 | 451 | | Sec. 4 October 1, 2024 20-421(a) |
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452 | 452 | | Sec. 5 October 1, 2024 20-426(a) |
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453 | 453 | | Sec. 6 October 1, 2024 20-429 |
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454 | 454 | | |
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455 | 455 | | Statement of Purpose: |
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456 | 456 | | To: (1) Modify both the permissible and required terms of home |
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457 | 457 | | improvement contracts; (2) preclude home improvement contractors |
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458 | 458 | | from engaging in certain conduct to induce owners to enter into home |
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459 | 459 | | improvement contracts; (3) require home improvement contractors to |
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460 | 460 | | notify the commissioner regarding changes in their business names, |
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461 | 461 | | trade names and addresses; (4) require home improvement contractors |
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462 | 462 | | to maintain additional types of insurance coverage; (5) expand the |
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463 | 463 | | required content of the application for a certificate of registration as a |
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464 | 464 | | home improvement contractor; and (6) modify the grounds on which |
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465 | 465 | | the Commissioner of Consumer Protection may (A) reprimand or place |
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466 | 466 | | a home improvement contractor or salesperson on probation, or (B) |
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467 | 467 | | revoke, suspend, or refuse to issue or renew a certificate of registration |
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468 | 468 | | as a home improvement contractor or salesperson. |
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469 | 469 | | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that |
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470 | 470 | | when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.] |
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