Sec. 20-417d. Holder to exhibit and advertise certificate, when. Required contract provision. Written disclosure notice to consumers. Prohibited acts. (a) A new
home construction contractor shall (1) prior to entering into a contract with a consumer
for new home construction, provide to the consumer a copy of the new home construction
contractor's certificate of registration and a written notice that (A) discloses that the
certificate of registration does not represent in any manner that such contractor's registration constitutes an endorsement of the quality of such person's work or of such contractor's competency by the commissioner, (B) advises the consumer to contact the
Department of Consumer Protection to determine (i) if such contractor is registered in
this state as a new home construction contractor, (ii) if any complaints have been filed
against such contractor, and (iii) the disposition of any such complaints, and (C) advises
the consumer to request from such contractor a list of consumers of the last twelve new
homes constructed to completion by the contractor during the previous twenty-four
months, or if the contractor has not constructed at least twelve new homes to completion
during the previous twenty-four months, then a list of all consumers for whom the
contractor has constructed a new home to completion during the previous twenty-four
months, and to contact several individuals on the list to discuss the quality of such
contractor's new home construction work, (2) state in any advertisement, including any
advertisement in a telephone directory, the fact that such contractor is registered, and
(3) include such contractor's registration number in any such advertisement. The new
home construction contractor, or his agent, shall also discuss with the consumer the
installation of an automatic fire extinguishing system in a new home.
(b) A new home construction contractor shall include in every contract with a consumer a provision advising the consumer that the consumer may be contacted by such
contractor's prospective consumers concerning the quality and timeliness of such contractor's new home construction work, unless the consumer advises such contractor, in
writing, at the time the contract is executed, that the consumer prefers not to be contacted.
(c) The written notice required in subsection (a) of this section shall be in capital
letters not less than ten-point bold face type, and may include a statement in substantially
the following form:
"NEW HOME CONSTRUCTION CONTRACTOR
REGISTRATION NOTICE
A CERTIFICATE OF REGISTRATION AS A NEW HOME CONSTRUCTION
CONTRACTOR DOES NOT REPRESENT IN ANY MANNER THAT THE CONNECTICUT DEPARTMENT OF CONSUMER PROTECTION ENDORSES THE
QUALITY OF THE CONTRACTOR'S NEW HOME CONSTRUCTION WORK OR
THE CONTRACTOR'S COMPETENCY TO ENGAGE IN NEW HOME CONSTRUCTION.
ACCORDINGLY, YOU ARE ADVISED TO:
(1) REQUEST FROM THE CONTRACTOR A LIST OF CONSUMERS OF THE
LAST TWELVE NEW HOMES CONSTRUCTED TO COMPLETION BY THE
CONTRACTOR DURING THE PREVIOUS TWENTY-FOUR MONTHS, OR IF
THE CONTRACTOR HAS NOT CONSTRUCTED AT LEAST TWELVE NEW
HOMES TO COMPLETION DURING THE PREVIOUS TWENTY-FOUR
MONTHS, THEN A LIST OF ALL CONSUMERS FOR WHOM THE CONTRACTOR HAS CONSTRUCTED A NEW HOME TO COMPLETION DURING THE PREVIOUS TWENTY-FOUR MONTHS,
(2) CONTACT SEVERAL INDIVIDUALS ON THE LIST TO DISCUSS THE
QUALITY AND THE TIMELINESS OF THE CONTRACTOR'S NEW HOME CONSTRUCTION WORK, AND
(3) CONTACT THE DEPARTMENT OF CONSUMER PROTECTION TO VERIFY THE REGISTRATION INFORMATION PRESENTED BY THE CONTRACTOR AND TO ASCERTAIN THE CONTRACTOR'S COMPLAINT HISTORY
WITH THE DEPARTMENT.
IN ADDITION, YOU ARE ADVISED TO DISCUSS WITH THE NEW HOME
CONSTRUCTION CONTRACTOR:
(1) WHETHER THE CONTRACTOR HAS A CUSTOMER SERVICE POLICY
AND IF SO, THE IDENTITY OF THE PERSON DESIGNATED TO ASSIST YOU
IN RESOLVING ANY COMPLAINT ABOUT THE CONTRACTOR'S WORK,
(2) WHETHER THE CONTRACTOR WILL HOLD YOU HARMLESS FOR
WORK PERFORMED BY ANY SUBCONTRACTOR HIRED BY THE CONTRACTOR, AND
(3) THE INSTALLATION OF AN AUTOMATIC FIRE EXTINGUISHING
SYSTEM.
THIS NOTICE DOES NOT CONTAIN AN EXHAUSTIVE LIST OF THE INQUIRIES YOU SHOULD MAKE BEFORE CONTRACTING WITH A NEW HOME CONSTRUCTION CONTRACTOR. ADDITIONAL INFORMATION TO ASSIST YOU
IN YOUR SELECTION OF A NEW HOME CONSTRUCTION CONTRACTOR
MAY BE OBTAINED BY CONTACTING THE CONNECTICUT DEPARTMENT
OF CONSUMER PROTECTION."
(d) No person shall: (1) Present, or attempt to present as such person's own, the
certificate of another; (2) knowingly give false evidence of a material nature to the
commissioner for the purpose of procuring a certificate; (3) represent such person falsely
as, or impersonate, a registered new home construction contractor; (4) use or attempt
to use a certificate which has expired or which has been suspended or revoked; (5)
engage in the business of a new home construction contractor or hold himself or herself
out as a new home construction contractor without having a current certificate of registration under sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421;
(6) represent in any manner that such person's registration constitutes an endorsement
of the quality of such person's work or of such person's competency by the commissioner; or (7) fail to refund a deposit paid to a new home construction contractor not later
than ten days after a written request mailed or delivered to the new home construction
contractor's last known address, if (A) the consumer has complied with the terms of the
written contract up to the time of the request, (B) no substantial portion of the contracted
work has been performed at the time of the request, (C) more than thirty days has elapsed
since the starting date specified in the written contract or more than thirty days has
elapsed since the date of the contract if such contract does not specify a starting date,
and (D) the new home construction contractor has failed to provide a reasonable explanation to the consumer concerning such contractor's failure to perform a substantial portion
of the contracted work. For purposes of this subdivision, "substantial portion of the
contracted work" includes, but is not limited to, work performed by the new home
construction contractor to (i) secure permits and approvals, (ii) redraft plans or obtain
engineer, architect, surveyor or other approvals for changes requested by the consumer
or made necessary by site conditions discovered after the contract is executed, (iii)
schedule site work or arrange for other contractors to perform services related to the
construction of the consumer's new home, and (iv) do any other work referred to in the
contract as a "substantial portion of the contracted work".
(P.A. 99-246, S. 4; P.A. 00-132, S. 4, 6; P.A. 01-195, S. 85, 181; June 30 Sp. Sess. P.A. 03-3, S. 93; June 30 Sp. Sess.
P.A. 03-6, S. 146(d); P.A. 04-169, S. 17; 04-189, S. 1.)
History: P.A. 00-132 amended language in Subsecs. (a)(1)(C) and (c)(1) providing for disclosure re most recently
constructed homes, effective May 26, 2000; P.A. 01-195 made technical changes in Subsec. (d), effective July 11, 2001;
June 30 Sp. Sess. P.A. 03-3 amended Subsecs. (a) and (c) by adding provisions re discussion of installation of automatic
fire extinguishing system; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-169 replaced Department of Consumer Protection with
Department of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp.
Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June
1, 2004.
Sec. 20-417e. Criminal penalties. Damages. In addition to any other remedy provided for in sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421, any person who violates any provision of subsection (d) of section 20-417d shall
be guilty of a class A misdemeanor. Notwithstanding subsection (d) of section 53a-29
or section 54-56e, if the court determines that a contractor cannot fully repay any victim
of the violations committed by the contractor within the period of probation established
in subsection (d) of section 53a-29 or section 54-56e, the court may impose probation
for a period of not more than five years. Any person who violates the provisions of
subdivision (7) of subsection (d) of section 20-417d shall be liable for treble damages.
(P.A. 99-246, S. 5; P.A. 00-132, S. 5, 6; P.A. 03-167, S. 2.)
History: P.A. 00-132 added language re treble damages for violation of Sec. 20-417d(d)(7), effective May 26, 2000;
P.A. 03-167 deleted exception for violation of Sec. 20-417d(d)(7).
Sec. 20-417f. Civil penalties. The commissioner may, after notice and hearing in
accordance with the provisions of chapter 54, impose a civil penalty on any person who
engages in or practices the work for which a certificate of registration is required by
sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421 without
having first obtained such a certificate of registration or who engages in or practices
any of the work for which a certificate of registration is required by said sections and
subsection after the expiration of such person's certificate of registration or who violates
any of the provisions of sections 20-417a to 20-417i, inclusive, and subsection (b) of
section 20-421 or the regulations adopted pursuant to said sections and subsection. Such
penalty shall not exceed (1) five hundred dollars for a first violation of this subsection,
(2) seven hundred fifty dollars for a second violation of this subsection occurring not
more than three years after a prior violation, and (3) one thousand five hundred dollars
for a third or subsequent violation of this subsection occurring not more than three years
after a prior violation. Any civil penalty collected pursuant to this subsection shall be
deposited in the Consumer Protection Enforcement Fund established in section 21a-8a.
(P.A. 99-246, S. 6.)
Sec. 20-417g. Unfair trade practices. A violation of any of the provisions of sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421 shall be deemed
an unfair or deceptive trade practice under subsection (a) of section 42-110b.
(P.A. 99-246, S. 7.)
Sec. 20-417h. Building and construction permits. No new home construction
contractor shall commence work unless each applicable building or construction permit
has been obtained under the general statutes or local ordinances. No building official
shall issue a contractor a building or construction permit unless the contractor has presented to such building official the certificate of registration and registration number of
the new home construction contractor.
(P.A. 99-246, S. 8.)
Sec. 20-417i. New Home Construction Guaranty Fund. (a) The commissioner
shall establish and maintain the New Home Construction Guaranty Fund.
(b) Each person who receives a certificate pursuant to sections 20-417a to 20-417i,
inclusive, and subsection (b) of section 20-421 shall pay a fee of four hundred eighty
dollars biennially to the fund. Said fee shall be payable with the fee for an application
for a certificate or renewal of a certificate.
(c) (1) For fiscal years commencing prior to July 1, 2002, payments received under
subsection (b) of this section shall be credited to the fund until the balance in such
fund equals seven hundred fifty thousand dollars. Annually, if the balance in such fund
exceeds seven hundred fifty thousand dollars, the first two hundred thousand dollars of
the excess shall be deposited into the Consumer Protection Enforcement Fund established in section 21a-8a. Any excess thereafter shall be applied by the commissioner to
reduce the fees payable by new home construction contractors under the provisions of
sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421 for the
subsequent fiscal year, provided the total amount of fees collected from new home
construction contractors under the provisions of said sections and subsection shall not
be less than three hundred sixty thousand dollars biennially.
(2) For the fiscal year commencing July 1, 2002, payments received under subsection (b) of this section shall be credited to the fund until the balance in such fund equals
seven hundred fifty thousand dollars. Any balance in such fund in excess of seven
hundred fifty thousand dollars on July 31, 2002, shall be deposited in the General Fund.
From August 1, 2002, to May 31, 2003, any excess in the fund, not to exceed three
hundred thousand dollars, shall be deposited in the consumer protection enforcement
account established in section 21a-8a. Any balance in the New Home Construction
Guaranty Fund, in excess of seven hundred fifty thousand dollars on June 1, 2003, shall
be deposited in the General Fund.
(3) For fiscal years commencing on or after July 1, 2003, payments received under
subsection (b) of this section shall be credited to the fund until the balance in such
fund equals seven hundred fifty thousand dollars. Annually, if the balance in such fund
exceeds seven hundred fifty thousand dollars, the first three hundred thousand dollars
of the excess shall be deposited in the consumer protection enforcement account established in section 21a-8a. On June 1, 2004, and each June first thereafter, if the balance
in the New Home Construction Guaranty Fund exceeds seven hundred fifty thousand
dollars, the excess shall be deposited in the General Fund.
(4) Any money in the New Home Construction Guaranty Fund may be invested or
reinvested in the same manner as funds of the state employees retirement system and
the interest arising from such investments shall be credited to the fund.
(d) Beginning one year after October 1, 1999, whenever a consumer obtains a court
judgment against any new home construction contractor holding a certificate or who
has held a certificate under sections 20-417a to 20-417i, inclusive, and subsection (b)
of section 20-421 within the past two years of the date of entering into the contract with
the consumer, for loss or damages sustained by reason of any violation of the provisions
of sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421 by a
person holding a certificate under said sections and subsection, such consumer may,
upon the final determination of, or expiration of time for, appeal in connection with any
such judgment, apply to the commissioner for an order directing payment out of said
New Home Construction Guaranty Fund of the amount not exceeding thirty thousand
dollars unpaid upon the judgment for actual damages and costs taxed by the court against
the contractor, exclusive of punitive damages. The application shall be made on forms
provided by the commissioner and shall be accompanied by a certified copy of the court
judgment obtained against the contractor together with a notarized affidavit, signed and
sworn to by the consumer, affirming that the consumer has: (1) Complied with all the
requirements of this subsection; (2) obtained a judgment, stating the amount of the
judgment and the amount owing on the judgment at the date of application; and (3)
made a good faith effort to satisfy any such judgment in accordance with the provisions
of chapter 906 which effort may include causing to be issued a writ of execution upon
said judgment, but the officer executing the same has made a return showing that no
bank accounts or real property of the contractor liable to be levied upon in satisfaction
of the judgment could be found, or that the amount realized on the sale of them or of
such of them as were found, under the execution, was insufficient to satisfy the actual
damage portion of the judgment or stating the amount realized and the balance remaining
due on the judgment after application on the judgment of the amount realized, except
that the requirements of this subdivision shall not apply to a judgment obtained by the
consumer in small claims court. A true and attested copy of said executing officer's
return, when required, shall be attached to such application and affidavit. Whenever
the consumer satisfies the commissioner or the commissioner's designee that it is not
practicable to comply with the requirements of subdivision (3) of this subsection and
that the consumer has taken all reasonable steps to collect the amount of the judgment
or the unsatisfied part of the judgment and has been unable to collect the same, the
commissioner or the commissioner's designee may, in the commissioner's discretion,
dispense with the necessity for complying with such requirement. No application for
an order directing payment out of the New Home Construction Guaranty Fund shall be
made later than two years from the final determination of, or expiration time for, appeal
of said court judgment, and no application for an order directing payment out of the
New Home Construction Guaranty Fund shall exceed thirty thousand dollars.
(e) Upon receipt of said application together with said certified copy of the court
judgment, notarized affidavit and true and, except as otherwise provided in subsection
(d) of this section, attested copy of the executing officer's return, the commissioner or
the commissioner's designee shall inspect such documents for their veracity and upon
a determination that such documents are complete and authentic, and a determination
that the consumer has not been paid, the commissioner shall order payment out of the
New Home Construction Guaranty Fund of the amount not exceeding thirty thousand
dollars unpaid upon the judgment for actual damages and costs taxed by the court against
the contractor, exclusive of punitive damages.
(f) Beginning one year after October 1, 1999, whenever a consumer is awarded an
order of restitution against any contractor for loss or damages sustained as a result of
any violation of the provisions of sections 20-417a to 20-417i, inclusive, and subsection
(b) of section 20-421 by a person holding a certificate or who has held a certificate under
said sections and subsection within the past two years of the date of entering into the
contract with the consumer, in a proceeding brought by the commissioner pursuant to
subsection (h) of this section or subsection (d) of section 42-110d or in a proceeding
brought by the Attorney General pursuant to subsection (a) of section 42-110m or subsection (d) of section 42-110d or a criminal proceeding pursuant to section 20-417d,
such consumer may, upon the final determination of, or expiration of time for, appeal
in connection with any such order of restitution, apply to the commissioner for an order
directing payment out of said New Home Construction Guaranty Fund of the amount not
exceeding thirty thousand dollars unpaid upon the order of restitution. The commissioner
may issue said order upon a determination that the consumer has not been paid.
(g) Before the commissioner may issue any order directing payment out of the New
Home Construction Guaranty Fund to a consumer pursuant to subsection (e) or (f) of
this section, the commissioner shall first notify the new home construction contractor
of the consumer's application for an order directing payment out of the New Home
Construction Guaranty Fund and of the new home construction contractor's right to a
hearing to contest the disbursement in the event that the new home construction contractor has already paid the consumer. Such notice shall be given to the new home construction contractor not later than fifteen days from the receipt by the commissioner of the
consumer's application for an order directing payment out of the fund. If the new home
construction contractor requests a hearing, in writing, by certified mail not later than
fifteen days from receipt of the notice from the commissioner, the commissioner shall
grant such request and shall conduct a hearing in accordance with the provisions of
chapter 54. If the commissioner does not receive a written request for a hearing by
certified mail from the contractor on or before the fifteenth day from the contractor's
receipt of such notice, the commissioner shall conclude that the consumer has not been
paid, and the commissioner shall issue an order directing payment out of the fund for
the amount not exceeding thirty thousand dollars unpaid upon the judgment for actual
damages and costs taxed by the court against the new home construction contractor,
exclusive of punitive damages, or for the amount not exceeding thirty thousand dollars
unpaid upon the order of restitution.
(h) The commissioner or the commissioner's designee may proceed against any
new home construction contractor holding a certificate or who has held a certificate
under sections 20-417a to 20-417i, inclusive, and subsection (b) of section 20-421 within
the past two years of the effective date of entering into the contract with the consumer,
for an order of restitution arising from loss or damages sustained by any consumer as
a result of any violation of the provisions of said sections and subsection. Any such
proceeding shall be held in accordance with the provisions of chapter 54. In the course
of such proceeding, the commissioner or the commissioner's designee shall decide
whether to exercise the powers specified in section 20-417b; whether to order restitution
arising from loss or damages sustained by any consumer as a result of any violation of
the provisions of sections 20-417a to 20-417i, inclusive, and subsection (b) of section
20-421; and whether to order payment out of the New Home Construction Guaranty
Fund. Notwithstanding the provisions of chapter 54, the decision of the commissioner
or the commissioner's designee shall be final with respect to any proceeding to order
payment out of the fund and the commissioner and the commissioner's designee are
exempted from the requirements of chapter 54 as they relate to appeal from any such
decision. The commissioner or the commissioner's designee may hear complaints of
all consumers submitting claims against a single contractor in one proceeding.
(i) No application for an order directing payment out of the New Home Construction
Guaranty Fund shall be made later than two years from the final determination of, or
expiration of time for, appeal in connection with any judgment or order of restitution,
and no such application for an order directing payment out of the fund shall exceed
thirty thousand dollars.
(j) In order to preserve the integrity of the New Home Construction Guaranty Fund,
the commissioner, in the commissioner's sole discretion, may order payment out of said
fund of an amount less than the actual loss or damages incurred by the consumer or less
than the order of restitution awarded by the commissioner or the Superior Court. In no
event shall any payment out of said fund be in excess of thirty thousand dollars for any
single claim by a consumer.
(k) If the money deposited in the New Home Construction Guaranty Fund is insufficient to satisfy any duly authorized claim or portion of a claim, the commissioner shall,
when sufficient money has been deposited in the fund, satisfy such unpaid claims or
portions of claims not exceeding thirty thousand dollars, in the order that such claims
or portions of claims were originally determined.
(l) When the commissioner has caused any sum to be paid from the New Home
Construction Guaranty Fund to a consumer, the commissioner shall be subrogated to
all of the rights of the consumer up to the amount paid plus reasonable interest, and
prior to receipt of any payment from the fund, the consumer shall assign all of this right,
title and interest in the claim up to such amount to the commissioner, and any amount
and interest recovered by the commissioner on the claim shall be deposited to the fund.
(m) If the commissioner orders the payment of any amount as a result of a claim
against a new home construction contractor, the commissioner shall determine if the
new home construction contractor is possessed of assets liable to be sold or applied in
satisfaction of the claim on the New Home Construction Guaranty Fund. If the commissioner discovers any such assets, the commissioner may request that the Attorney General take any action necessary for the reimbursement of the fund.
(n) If the commissioner orders the payment of an amount as a result of a claim
against a new home construction contractor, the commissioner may, after notice and
hearing in accordance with the provisions of chapter 54, revoke the certificate of the
new home construction contractor and such contractor shall not be eligible to receive a
new or renewed certificate until such contractor has repaid such amount in full, plus
interest from the time said payment is made from the New Home Construction Guaranty
Fund, at a rate to be in accordance with section 37-3b, except that the commissioner
may, in the commissioner's sole discretion, permit a new home construction contractor
to receive a new or renewed certificate after such new home construction contractor has
entered into an agreement with the commissioner whereby the new home construction
contractor agrees to repay the fund in full in the form of periodic payments over a set
period of time. Any such agreement shall include a provision providing for the summary
suspension of any and all certificates held by the new home construction contractor if
payment is not made in accordance with the terms of the agreement.
(P.A. 99-246, S. 9; May 9 Sp. Sess. P.A. 02-1, S. 126.)
History: May 9 Sp. Sess. P.A. 02-1 divided Subsec. (c) into subdivisions, adding Subdivs. (2) and (3) re payments
received in the fiscal years commencing July 1, 2002, July 1, 2003, and thereafter, effective July 1, 2002.
Sec. 20-417j. Persons exempted from registration requirement. Reimbursement of fees. (a) Sections 20-417a to 20-417i, inclusive, and subsection (b) of section
20-421 do not apply to any of the following persons or organizations: (1) Any person
holding a current license as a real estate broker or salesperson issued pursuant to chapter
392, provided such person engages only in work for which such person is licensed under
chapter 392; (2) any person licensed or otherwise authorized under chapter 412 to sell
or place a mobile manufactured home, as defined in section 21-64, upon a mobile manufactured home park or mobile manufactured space or lot, both as defined in section 21-64, provided such person engages only in work for which such person is licensed or
otherwise authorized under chapter 412; (3) any other person holding a professional or
occupational license, registration or certificate issued pursuant to the general statutes,
provided such person engages only in the work for which such person is licensed, registered or certified; and (4) any new home construction contractor who enters into one or
more new home construction contracts related to the same new home when such contract
or contracts in the aggregate with respect to that home has a total price for work or
services that is less than three thousand five hundred dollars.
(b) The commissioner shall reimburse the amount of the fees paid for a certificate
issued under section 20-417b and the amount of fees paid into the New Home Construction Guaranty Fund pursuant to section 20-417i if such person for whom reimbursement
is requested (1) is a person exempt from registration as a contractor pursuant to subsection (a) of this section, and (2) makes such request in writing to the Department of
Consumer Protection on a form supplied by the department and such request is received
by the department on or before June 30, 2001.
(P.A. 00-132, S. 2, 6; P.A. 00-196, S. 63, 66; June 30 Sp. Sess. P.A. 03-6, S. 146(d); P.A. 04-169, S. 17; 04-189, S. 1.)
History: P.A. 00-132 effective May 26, 2000 (Revisor's note: Sec. 2 of P.A. 00-128, also effective May 26, 2000,
duplicated the substantive provisions of Subsec. (a)(3) of this section and therefore was not codified by the Revisors but
remains in full force and effect according to its terms); P.A. 00-196 made a technical change in Subsec. (b), effective June
1, 2000; June 30 Sp. Sess. P.A. 03-6 and P.A. 04-169 replaced Department of Consumer Protection with Department of
Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-189 repealed Sec. 146 of June 30 Sp. Sess. P.A. 03-6, thereby reversing the merger of the Departments of Agriculture and Consumer Protection, effective June 1, 2004.