Sec. 20-420a. Procedures for registration. Records.
Sec. 20-426. Revocation, suspension or refusal to issue or renew registration; grounds.
Sec. 20-432. Home Improvement Guaranty Fund.
Sec. 20-419. Definitions. As used in this chapter, unless the context otherwise requires:
(1) “Business entity” means an association, corporation, limited liability company, limited liability partnership or partnership.
(2) “Certificate” means a certificate of registration issued under section 20-422.
(3) “Commissioner” means (A) the Commissioner of Consumer Protection, and (B) any person designated by the commissioner to administer and enforce this chapter.
(4) (A) “Contractor” means any person who (i) owns and operates a home improvement business, or (ii) undertakes, offers to undertake or agrees to perform any home improvement.
(B) “Contractor” does not include a person for whom the total price of all of such person's home improvement contracts with all of such person's customers does not exceed one thousand dollars during any period of twelve consecutive months.
(5) (A) “Home improvement” includes, but is not limited to, the repair, replacement, remodeling, alteration, conversion, modernization, improvement, rehabilitation or sandblasting of, or addition to, any land or building or that portion thereof which is used or designed to be used as a private residence, dwelling place or residential rental property, or the construction, replacement, installation or improvement of alarm systems not requiring electrical work, as defined in section 20-330, driveways, swimming pools, porches, garages, roofs, siding, insulation, sunrooms, flooring, patios, landscaping, fences, doors and windows, waterproofing, water, fire or storm restoration or mold remediation in connection with such land or building or that portion thereof which is used or designed to be used as a private residence, dwelling place or residential rental property or the removal or replacement of a residential underground heating oil storage tank system, in which the total price for all work agreed upon between the contractor and owner or proposed or offered by the contractor exceeds two hundred dollars.
(B) “Home improvement” does not include (i) the construction of a new home, (ii) the sale of goods or materials by a seller who neither arranges to perform nor performs, directly or indirectly, any work or labor in connection with the installation or application of the goods or materials, (iii) the sale of goods or services furnished for commercial or business use or for resale, provided commercial or business use does not include use as residential rental property, (iv) the sale of appliances, such as stoves, refrigerators, freezers, room air conditioners and others, which are designed for and are easily removable from the premises without material alteration thereof, (v) tree or shrub cutting or the grinding of tree stumps, and (vi) any work performed without compensation by the owner on such owner's own private residence or residential rental property.
(6) “Home improvement contract” means an agreement between a contractor and an owner for the performance of a home improvement.
(7) “Owner” means a person who owns or resides in a private residence and includes any agent thereof, including, but not limited to, a condominium association. An owner of a private residence shall not be required to reside in such residence to be deemed an owner under this subdivision.
(8) “Person” means an individual or a business entity.
(9) “Private residence” means a single family dwelling, a multifamily dwelling consisting of not more than six units, or a unit, common element or limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202, or any number of condominium units for which a condominium association acts as an agent for such unit owners.
(10) “Salesman” means any individual who (A) negotiates or offers to negotiate a home improvement contract with an owner, or (B) solicits or otherwise endeavors to procure by any means whatsoever, directly or indirectly, a home improvement contract from an owner on behalf of a contractor.
(11) “Residential rental property” means a single family dwelling, a multifamily dwelling consisting of not more than six units, or a unit, common element or limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202, which is not owner-occupied.
(12) “Residential underground heating oil storage tank system” means an underground storage tank system used with or without ancillary components in connection with real property composed of four or less residential units.
(13) “Underground storage tank system” means an underground tank or combination of tanks, with any underground pipes or ancillary equipment or containment systems connected to such tank or tanks, used to contain an accumulation of petroleum, which volume is ten per cent or more beneath the surface of the ground.
(P.A. 79-606, S. 2, 14; P.A. 88-269, S. 1; P.A. 91-325, S. 4; P.A. 93-215, S. 2; P.A. 95-79, S. 68, 189; P.A. 98-3, S. 61; June 30 Sp. Sess. P.A. 03-6, S. 146(c); P.A. 04-21, S. 1; 04-189, S. 1; P.A. 05-211, S. 6; P.A. 13-196, S. 14, 26; P.A. 16-35, S. 1; P.A. 21-197, S. 4; P.A. 23-99, S. 10.)
History: P.A. 88-269 redefined “home improvement” to include sandblasting, redefined “person” to delete reference to firms and companies, redefined “private residence” to increase allowable units from four to six, and redefined “salesman” to delete the reference to contracts being made outside of a place of business; P.A. 91-325 redefined “private residence” to include a “unit, common element or limited common element in a condominium, as defined in section 47-68a, or in a common interest community, as defined in section 47-202”; P.A. 93-215 expanded the definition of “home improvement” in Subdiv. (4) by including repair work done to residential rental property and excluding work performed without compensation by an owner on his private residence or residential rental property, clarified the definition of “owner” in Subdiv. (6) and added Subdiv. (10) defining “residential rental property”; P.A. 95-79 redefined “person” to include a limited liability company, effective May 31, 1995; P.A. 98-3 made technical changes; June 30 Sp. Sess. P.A. 03-6 replaced Commissioner of Consumer Protection with Commissioner of Agriculture and Consumer Protection, effective July 1, 2004; P.A. 04-21 amended the definition of “home improvement” in Subdiv. (4) to include the removal or replacement of a residential underground heating oil storage tank system, and added Subdiv. (11) defining “residential underground heating oil storage tank system”, and Subdiv. (12) defining “underground storage tank system”; 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; P.A. 05-211 redefined “home improvement” in Subdiv. (4) to replace “solar energy systems” with “sunrooms”; P.A. 13-196 amended Subdiv. (3) to redefine “contractor” by replacing “total cash price” with “total price”, amended Subdiv. (4) to redefine “home improvement” by replacing “total cash price” with “total price” and adding “or proposed or offered by the contractor”, amended Subdiv. (6) to redefine “owner” by adding provision re condominium association, and amended Subdiv. (8) to redefine “private residence” by adding provision re number of condominium units for which condominium association acts as agent, effective June 21, 2013; P.A. 16-35 redefined “home improvement” to add “water, fire or storm restoration or mold remediation”, effective January 1, 2017; P.A. 21-197 amended Subdiv. (4) to add reference to alarm systems not requiring electrical work, redesignate existing Subpara. (E) as Subpara. (F) and add new Subpara. (E) re tree or shrub cutting or grinding of tree stumps, effective July 1, 2022; P.A. 23-99 added Subdiv. (1) defining “business entity”, redesignated existing Subdivs. (1) to (12) as Subdivs. (2) to (13), amended redesignated Subdiv. (3) by dividing provisions into Subparas. (A) and (B) and substituting “and” for “or” before Subpara. designator (B), divided Subdiv. (4) into Subparas. (A) and (B) and Subpara. (A) into Subpara. (A)(i) and (A)(ii), amended redesignated Subdiv. (5) by designating items included in “home improvement” as Subpara. (A), designating exceptions to “home improvement” as Subpara. (B), redesignating existing Subparas. (A) to (F) as Subpara. (B)(i) to (B)(vi) and adding “or materials” in redesignated Subpara. (B)(ii), amended redesignated Subdiv. (8) by substituting “or a business entity” for “partnership, limited liability company or corporation”, and made technical and conforming changes throughout, effective June 29, 2023.
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Sec. 20-420. Certificate of registration of contractors and salesperson required. Requirements for contractors performing radon mitigation, removal or replacement of residential underground heating oil tank storage systems and gas hearth product work. Application by retail establishment for certificate of registration as salesperson for its employees. Duty to update application information. (a) No person shall hold such person out to be a contractor or salesperson without first obtaining a certificate of registration from the commissioner as provided in this chapter, except (1) that an individual or partner, or officer or director of a corporation registered as a contractor shall not be required to obtain a salesperson's certificate, and (2) as provided in subsections (e) and (f) of this section. No certificate shall be given to any person who holds such person out to be a contractor that performs radon mitigation unless such contractor provides evidence, satisfactory to the commissioner, that the contractor is certified as a radon mitigator by the National Radon Safety Board or the National Environmental Health Association. No certificate shall be given to any person who holds such person out to be a contractor that performs removal or replacement of any residential underground heating oil storage tank system unless such contractor provides evidence, satisfactory to the commissioner, that the contractor (A) has completed a hazardous material training program approved by the Department of Energy and Environmental Protection, and (B) has presented evidence of liability insurance coverage of one million dollars.
(b) No contractor shall employ any salesman to procure business from an owner unless the salesman is registered under this chapter.
(c) No individual shall act as a home improvement salesman for an unregistered contractor.
(d) On and after July 1, 2008, a home improvement contractor shall not perform gas hearth product work, as defined in subdivision (22) of section 20-330, unless such home improvement contractor holds a limited contractor or journeyman gas hearth installer license pursuant to section 20-334f.
(e) A retail establishment, which is a business that operates from a fixed location where goods or services are offered for sale, may apply annually for a certificate of registration as a salesperson on behalf of its employees if it employs or otherwise compensates one or more salespersons whose solicitation, negotiation and completion of sales are conducted entirely at the retail establishment or virtually or by phone. The retail establishment shall (1) apply for such registration on a form prescribed by the commissioner, (2) maintain a list of all salespersons intended to be covered by the retailer's certificate of registration, and (3) pay a fee equal to the amount that would be due if each person were to apply individually for a certificate of registration, including the amount that would be due under the guaranty fund. The list of salespersons covered by the retailer's certificate of registration shall be made available to the department upon request. If any person covered by the retail establishment's salesperson certificate of registration conducts activity covered by the salesperson credential at a place other than the retail establishment or virtually or by phone, such person shall apply for an individual salesperson certificate of registration using the form prescribed by the commissioner for such registrations and shall pay the corresponding application fee.
(f) Certificates of registration for salespersons issued to retail establishments shall not be transferable or assignable, except a retail establishment that is a holder of a salesperson certificate may remove an existing or former employee currently listed on the certification of registration and replace such person with a new or existing employee employed as a salesperson. If the retail establishment adds or removes salespeople, there shall be no refund or supplemental payment. The fee shall be based on the number of salespeople at the time of each renewal.
(g) A contractor or salesperson shall update, through the department's online licensing system, any application information the contractor or salesperson has provided to the department pursuant to this section, including, but not limited to, any contact information, insurance information or criminal history for such contractor or salesperson, or, if such contractor is a business entity, criminal histories of the individual owners of such business entity, not later than thirty days after any change in such information.
(P.A. 79-606, S. 3, 14; P.A. 88-269, S. 2; P.A. 90-321. S. 3; P.A. 98-3, S. 62; P.A. 99-74, S. 2, 3; P.A. 03-186, S. 1; P.A. 04-21, S. 2; 04-109, S. 4; P.A. 06-157, S. 3; P.A. 09-122, S. 1; P.A. 11-80, S. 1; P.A. 21-197, S. 10; P.A. 23-99, S. 11.)
History: P.A. 88-269 added Subsec. (c) providing no individual shall act as a home improvement salesman for an unregistered contractor; P.A. 90-321 added provisions concerning contractors that perform radon work; P.A. 98-3 made a technical change in Subsec. (a); P.A. 99-74 amended Subsec. (a) to make gender neutral changes and to require radon mitigation contractors to attend a program approved by the Commissioner of Public Health and receive a passing score on an examination approved by said commissioner, effective May 27, 1999; P.A. 03-186 amended Subsec. (a) to require radon mitigation contractors to be certified as such by the National Radon Safety Board or the National Environmental Health Association, rather than pass an exam approved by the commissioner; P.A. 04-21 amended Subsec. (a) by adding requirements for the issuance of a certificate to a contractor who performs the removal or replacement of residential underground heating oil storage tank systems (Revisor's note: The phrase “who holds oneself out to be a contractor”, included in the amendment, was replaced editorially by the revisors with “who holds himself or herself out to be a contractor” to conform with technical changes enacted by P.A. 04-109); P.A. 04-109 amended Subsec. (a) to make technical changes, effective May 21, 2004; P.A. 06-157 added Subsec. (d) prohibiting a home improvement contractor from performing gas hearth product work after July 1, 2008, unless such contractor holds a limited contractor or journeyman gas hearth installer license; P.A. 09-122 amended Subsec. (a) by deleting former Subdiv. (3) re surety bond, effective June 9, 2009; pursuant to P.A. 11-80, “Department of Environmental Protection” was changed editorially by the Revisors to “Department of Energy and Environmental Protection” in Subsec. (a), effective July 1, 2011; P.A. 21-197 amended Subsec. (a) to designate existing provision re exception as Subdiv. (1), add Subdiv. (2) re reference to Subsecs. (e) and (f) and redesignate existing Subdivs. (1) and (2) as Subparas. (A) and (B), added Subsec. (e) re annual application by retail establishment for certificate of registration as saleperson for its employees, and added Subsec. (f) re certificates of registration for salespersons issued to retail establishments being nontransferable and nonassignable with exception, prohibition on refunds and calculation of fee, effective July 1, 2022; P.A. 23-99 added Subsec. (g) re duty to update application information, and made technical changes in Subsecs. (a) and (e), effective June 29, 2023.
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Sec. 20-420a. Procedures for registration. Records. (a) No business entity shall perform or offer to perform home improvements in this state unless such business entity has been issued a certificate of registration by the commissioner. No such business entity shall be relieved of responsibility for the conduct and acts of its agents, employees or officers by reason of its compliance with the provisions of this section, nor shall any individual contractor be relieved of responsibility for home improvements performed by reason of such individual contractor's employment or relationship with such business entity.
(b) A business entity desiring a certificate of registration shall apply to the commissioner, online, on a form provided by the commissioner. The application shall (1) state the name and address of such business entity, the city or town and the street and number where such business entity is to maintain its principal place of business in this state and the names and addresses of its individual owners, (2) contain a list of one or more individuals who shall direct, supervise or perform home improvements for such business entity, (3) require each individual owner of such business entity to disclose whether such individual owner has been found guilty or convicted as a result of an act which (A) constitutes a felony under the laws of this state or federal law, or (B) was committed in another jurisdiction but, if committed in this state, would constitute a felony under the laws of this state, and (4) such other information as the commissioner may require.
(c) Any certificate issued by the commissioner pursuant to this section may be revoked, suspended, or have conditions placed upon the holder of the certificate by the commissioner after notice and a hearing in accordance with the provisions of chapter 54 concerning contested cases, if it is shown that the holder of such certificate has not conformed to the requirements of this chapter, that the certificate was obtained through fraud or misrepresentation or that any individual owner of such home improvement contractor, if such registrant is a business entity, has been convicted of a crime that would preclude such registrant from holding such registration in accordance with section 46a-80. The commissioner may refuse to issue or renew a certificate if any facts exist which would entitle the commissioner to suspend or revoke an existing certificate.
(d) Each such business entity shall file with the commissioner, upon application or renewal thereof, a designation of an individual or individuals registered to perform home improvements in this state who shall direct or supervise the performance of home improvements by such business entity in this state.
(e) Each such business entity shall confirm, upon application or renewal thereof, that such applicant business entity is in good standing with the Secretary of the State. Such corporation shall notify the commissioner of any change in such standing not later than thirty days after such change becomes effective.
(f) Each such business entity shall maintain a list of all of such business entity's employees and contractors, and all employment documents associated with such employees and contractors, in an auditable format for at least four taxable years. Such business entity shall, upon request by the commissioner or the commissioner's authorized representative, (1) immediately make such list and documents available to the commissioner or the commissioner's authorized representative for the purpose of inspecting and copying such list and documents, and (2) produce copies of such list and documents to the commissioner or the commissioner's authorized representative not later than two business days after the commissioner or the commissioner's authorized representative requests such copies. Such business entity shall make such list, documents and copies available to the commissioner or the commissioner's authorized representative in an electronic format unless it is not commercially practical for such business entity to make such list, documents and copies available to the commissioner or the commissioner's authorized representative in an electronic format.
(P.A. 88-269, S. 3; P.A. 98-3, S. 63; P.A. 21-197, S. 5; P.A. 23-99, S. 12.)
History: P.A. 98-3 made technical changes; P.A. 21-197 amended Subsec. (b) to change “in writing” to “online”, designate existing provision re application as Subdivs. (1) and (2) and make technical changes and amended Subsec. (c) to authorize placement of conditions on certificate holder, effective July 1, 2022; P.A. 23-99 amended Subsecs. (a), (b), (d) and (e) by substituting references to business entity for references to corporation or qualifying corporation, amended Subsec. (b) by substituting “its individual owners” for “officers” in Subdiv. (1), substituting “list of” for “statement that” in Subdiv. (2), adding Subdiv. (3) requiring disclosure re guilt or conviction and designating existing provisions re other information required by Commissioner of Consumer Protection as Subdiv. (4), amended Subsec. (c) by substituting provisions re individual owner for provisions re contractor of record, amended Subsec. (d) by eliminating provision re corporation notify Commissioner of Consumer Protection within 30 days, amended Subsec. (e) by substituting “confirm” for “file with the commissioner”, added Subsec. (f) re recordkeeping and disclosure, and made technical and conforming changes throughout, effective June 29, 2023.
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Sec. 20-421. Application for certificate of registration as home improvement contractor or salesman. Fees. (a) Any person seeking a certificate of registration shall apply to the commissioner online, on a form provided by the commissioner. The application shall include (1) the applicant's name, residence address, business address, business telephone number and electronic mail address, (2) a statement by the applicant disclosing whether the applicant has been found guilty or convicted as a result of an act which (A) constitutes a felony under the laws of this state or federal law, or (B) was committed in another jurisdiction but, if committed in this state, would constitute a felony under the laws of this state, (3) proof that the applicant has obtained general liability insurance coverage in an amount not less than twenty thousand dollars, demonstrated by providing the policy number and business name of the insurance provider, and (4) such other information as the commissioner may require.
(b) Each application for a certificate of registration as a home improvement contractor shall be accompanied by a fee of one hundred twenty dollars, except that no such application fee shall be required in any year during which such person has paid the registration fee required under section 20-417b or in any year in which such person's registration as a new home construction contractor is valid.
(c) Each application for a certificate of registration as a salesman shall be accompanied by a fee of one hundred twenty dollars.
(d) The application fee for a certificate of registration as a home improvement contractor acting solely as the contractor of record for a business entity, shall be waived, provided the contractor of record shall use such registration for the sole purpose of directing, supervising or performing home improvements for such business entity.
(P.A. 79-606, S. 4, 14; P.A. 88-269, S. 4; P.A. 89-251, S. 148, 203; P.A. 96-117, S. 1; P.A. 98-3, S. 64; P.A. 99-246, S. 10; P.A. 06-73, S. 13; June Sp. Sess. P.A. 09-3, S. 259; P.A. 21-197, S. 6; P.A. 23-99, S. 13.)
History: P.A. 88-269 amended Subsec. (a) to include a business telephone number; P.A. 89-251 increased the fees for both home improvement contractors and salesmen from $30 to $60; P.A. 96-117 added Subsec. (d) re waiver of the application fee for a certificate of registration for the contractor of record; P.A. 98-3 made technical changes in Subsec. (a); P.A. 99-246 amended Subsec. (b) to specify conditions under which no application fee is required; P.A. 06-73 amended Subsec. (b) to replace reference to Sec. 20-417c with Sec. 20-417b, effective May 30, 2006; June Sp. Sess. P.A. 09-3 amended Subsecs. (b) and (c) to increase application fees from $60 to $120; P.A. 21-197 amended Subsec. (a) to replace “in writing” with “online” and add requirement for proof of general liability insurance coverage of not less than $20,000, effective July 1, 2022; P.A. 23-99 amended Subsec. (a) by dividing existing provisions into Subdivs. (1), (3) and (4), adding “and electronic mail address” in Subdiv. (1) and adding Subdiv. (2) requiring disclosure of guilt or conviction, and amended Subsec. (d) by substituting references to business entity for references to corporation, effective June 29, 2023.
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Sec. 20-426. Revocation, suspension or refusal to issue or renew registration; grounds. (a) The commissioner may revoke, suspend or refuse to issue or renew any certificate of registration as a home improvement contractor or salesperson or place a registrant on probation or issue a letter of reprimand (1) for conduct of a character likely to mislead, deceive or defraud the public or the commissioner, (2) for engaging in any untruthful or misleading advertising, (3) for failing to reimburse the guaranty fund established pursuant to section 20-432 for any moneys paid to an owner pursuant to subsection (o) of section 20-432, (4) for unfair or deceptive business practices, (5) subject to section 46a-80, based on a felony conviction of an individual registrant or an individual owner of a registrant that is a business entity; or (6) for violation of any of the provisions of the general statutes relating to home improvements or any regulation adopted pursuant to any of such provisions. The commissioner may refuse to issue or renew any certificate of registration as a home improvement contractor or salesperson of any person subject to the registration requirements of chapter 969.
(b) The commissioner shall not revoke or suspend any certificate of registration or require the posting of a bond except upon notice and hearing in accordance with chapter 54.
(P.A. 79-606, S. 9, 14; P.A. 82-315, S. 2; P.A. 88-269, S. 7; 88-364, S. 107, 123; P.A. 94-68, S. 1; P.A. 98-3, S. 67; P.A. 01-155, S. 3; P.A. 23-99, S. 14.)
History: P.A. 82-315 amended Subsec. (b) to make provisions applicable to bond posting requirement; P.A. 88-269 amended Subsec. (a) to include refusal to issue or renew, to provide for probation and letters of reprimand and to add Subdiv. (3) regarding failure to reimburse the guaranty fund; P.A. 88-364 corrected an incorrect section number reference in public act 88-269; P.A. 94-68 added Subsec. (a)(4) authorizing disciplinary action against those engaging in unfair or deceptive business practices; P.A. 98-3 made technical changes in Subsec. (a) (Revisor's note: A reference in Subsec. (a) to “certificate or registration” was replaced editorially by the Revisors with “certificate of registration” to correct a clerical error originating in P.A. 88-269); P.A. 01-155 amended Subsec. (a) by making technical changes for purposes of gender neutrality and by adding provision re refusal to issue or renew certificate of any person subject to registration under chapter 969; P.A. 23-99 amended Subsec. (a) by adding new Subdiv. (5) re felony convictions, redesignating existing Subdiv. (5) as Subdiv. (6) and making technical and conforming changes throughout, effective June 29, 2023.
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Sec. 20-427. Holder to exhibit and advertise certificate, when. Prohibited acts. Penalties. Certificates generally not transferable. Expiration. Renewal. Building permits. (a) Each person engaged in making home improvements shall (1) exhibit his certificate of registration upon request by any interested party, (2) state in any advertisement the fact that he is registered, and (3) include his registration number in any advertisement.
(b) 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 himself or herself falsely as, or impersonate, a registered home improvement contractor or salesman, (4) use or attempt to use a certificate which has expired or which has been suspended or revoked, (5) offer to make or make any home improvement without having a current certificate of registration under this chapter, (6) represent in any manner that such person's registration constitutes an endorsement of the quality of such person's workmanship or of such person's competency by the commissioner, (7) employ or allow any person to act as a salesman on such person's behalf unless such person is registered as a home improvement salesman, or (8) fail to refund the amount paid for a home improvement within ten days of a written request mailed or delivered to the contractor's last-known address, if no substantial portion of the contracted work has been performed at the time of the request and 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.
(c) In addition to any other remedy provided for in this chapter, (1) any person who violates any provision of subsection (b) of this section, except subdivision (8), shall be guilty of a class B misdemeanor and (2) any person who violates the provisions of subdivision (8) of subsection (b) of this section shall be guilty of a class B misdemeanor if the home improvement that is offered or made has a total cash price of ten thousand dollars or less and shall be guilty of a class A misdemeanor if the home improvement that is offered or made has a total cash price of more than ten thousand dollars. Notwithstanding subsection (d) or (e) of section 53a-29 or section 54-56e, if the court determines that a contractor cannot fully repay his victims within the period of probation established in subsection (d) or (e) of section 53a-29 or section 54-56e, the court may impose probation for a period of not more than five years. A violation of any of the provisions of this chapter shall be deemed an unfair or deceptive trade practice under subsection (a) of section 42-110b.
(d) The commissioner may, after notice and a hearing in accordance with the provisions of chapter 54, impose a civil penalty on any person who engages in or practices the work or occupation for which a certificate of registration is required by this chapter without having first obtained such a certificate of registration or who wilfully employs or supplies for employment a person who does not have such a certificate of registration or who wilfully and falsely pretends to qualify to engage in or practice such work or occupation, or who engages in or practices any of the work or occupations for which a certificate of registration is required by this chapter after the expiration of such person's certificate of registration or who violates any of the provisions of this chapter or the regulations adopted pursuant thereto. Such penalty shall be in an amount not more than one thousand five hundred dollars per violation. Any civil penalty collected pursuant to this subsection shall be deposited in the consumer protection enforcement account established in section 21a-8a.
(e) Certificates issued to home improvement contractors or salesmen shall not be transferable or assignable, except when the holder of the certificate changes only the name or type of business entity of such business.
(f) All certificates issued under the provisions of this chapter shall expire annually on March thirty-first, except that certificates which expire on November 30, 2021, shall be renewed on November 30, 2021, and expire on March 31, 2022. The fee for renewal of a certificate shall be the same as the fee charged for an original application, except that for certificates which expire on March 31, 2022, a prorated renewal fee shall be charged to reflect the portion of the year for which the certificate will be active.
(g) The renewal fee for a certificate of registration as a home improvement contractor acting solely as the contractor of record for a registration as a home improvement contractor acting solely as the contractor of record for a corporation, shall be waived, if such contractor uses such registration for the sole purpose of directing, supervising or performing home improvements for such corporation.
(h) Failure to receive a notice of expiration or a renewal application shall not exempt a contractor or salesman from the obligation to renew.
(i) No contractor shall commence work unless each applicable building or construction permit has been obtained as may be required under the general statutes or local ordinances.
(P.A. 79-606, S. 10, 14; P.A. 81-361, S. 2, 39; 81-472, S. 136, 159; P.A. 82-315, S. 3; P.A. 88-269, S. 8; P.A. 89-251, S. 149, 203; P.A. 91-325, S. 1; P.A. 94-36, S. 22, 42; 94-68, S. 2; P.A. 96-117, S. 2; P.A. 00-192, S. 79, 102; P.A. 03-167, S. 3; 03-186, S. 2; P.A. 04-257, S. 104; P.A. 08-102, S. 4; P.A. 21-37, S. 29; 21-197, S. 7; P.A. 23-99, S. 15.)
History: P.A. 81-361 deleted provision in Subsec. (e) allowing prorated fees lower than application fee and changed the word “issuance” to “effective date”; P.A. 81-472 made technical changes; P.A. 82-315 made violation of chapter an unfair or deceptive trade practice; P.A. 88-269 amended Subsec. (a) to include advertisements, amended Subsec. (b)(3) to include salesmen and added Subsec. (b)(7) and (8) re employment of unregistered salesmen and failure to make refunds, amended Subsec. (f) to increase fee for restoration of expired license from $5 to $10 and added Subsecs. (g), (h) and (i) re restoration, failure to receive notice of expiration and the necessity of the existence of building and construction permits at the beginning of work, deleting obsolete provisions in Subsecs. (d) and (e); P.A. 89-251 amended Subsec. (f) to increase the restoration fee from $10 to $20; P.A. 91-325 amended Subsec. (b) by authorizing court to impose a period of probation of not more than five years in order to ensure that the victims would be fully repaid if the court determined that a contractor could not fully repay his victims within the period of probation established in Sec. 53a-29(d); P.A. 94-36 amended Subsec. (d) by eliminating the alphabetical certificate renewal system and deleted Subsecs. (e) and (f) which provided for prorated certificate application fees and late certificate renewal fees, relettering remaining Subsecs. as necessary, effective January 1, 1995; P.A. 94-68 amended Subsec. (b)(8) by adding the clause allowing the date of the contract to be used if no starting date was specified in the contract, expanded criminal penalties in Subsec. (c) and inserted Subsec. (d) re civil penalties, relettering former Subsecs. (c) to (i), inclusive, accordingly; P.A. 96-117 amended Subsec. (c) to add references to Sec. 54-56e; P.A. 00-192 amended Subsec. (g) to delete provision that certificate shall not be restored unless renewed not later than one year after its expiration and to add provision re waiver of renewal fee for certain home improvement contractors, effective July 1, 2000; P.A. 03-167 made technical changes in Subsec. (b) for the purpose of gender neutrality; P.A. 03-186 amended Subsec. (d) to add provision re minimum penalty for radon mitigation work; P.A. 04-257 made technical changes in Subsec. (d), effective June 14, 2004; P.A. 08-102 amended Subsec. (c) to replace references to “subsection (d) of section 53a-29” with “subsection (d) or (e) of section 53a-29”; P.A. 21-37 amended Subsec. (f) to add March 31 expiration date and exception to certificates expiring November 30, 2021, and added provision re prorated renewal fee, effective June 4, 2021; P.A. 21-197 amended Subsec. (e) to add exception for change in only name or type of business entity, effective July 1, 2022; P.A. 23-99 amended Subsec. (d) by changing amount of penalty from not more than $500 for first violation, $750 for second violation, $1,000 for third or subsequent violation and, in case of radon mitigation work, not less than $250 per violation to not more than $1,500 per violation, effective June 29, 2023.
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Sec. 20-432. Home Improvement Guaranty Fund. (a) The commissioner shall establish and maintain the Home Improvement Guaranty Fund.
(b) Each salesman who receives a certificate pursuant to this chapter shall pay a fee of forty dollars annually. Each contractor (1) who receives a certificate pursuant to this chapter, or (2) receives a certificate pursuant to chapter 399a and has opted to engage in home improvement pursuant to subsection (f) of section 20-417b shall pay a fee of one hundred dollars annually to the guaranty fund. Such fee shall be payable with the fee for an application for a certificate or renewal thereof. The annual fee for a contractor who receives a certificate of registration as a home improvement contractor acting solely as the contractor of record for a corporation shall be waived, provided the contractor of record shall use such registration for the sole purpose of directing, supervising or performing home improvements for such corporation.
(c) Payments received under subsection (b) of this section shall be credited to the guaranty fund until the balance in such fund equals seven hundred fifty thousand dollars. Annually, if the balance in the fund exceeds seven hundred fifty thousand dollars, the first four hundred thousand dollars of the excess shall be deposited into the consumer protection enforcement account established in section 21a-8a. Any excess thereafter shall be deposited in the General Fund. Any money in the 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 guaranty fund.
(d) Whenever an owner obtains a binding arbitration decision, a court judgment, order or decree against any contractor holding a certificate or who has held a certificate under this chapter within two years of the effective date of entering into the contract with the owner, for loss or damages sustained by reason of performance of or offering to perform a home improvement within this state by a contractor holding a certificate under this chapter, such owner may, upon the final determination of, or expiration of time for, taking an appeal in connection with any such decision, judgment, order or decree, apply to the commissioner for an order directing payment out of said guaranty fund of the amount unpaid upon the decision, judgment, order or decree, 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 copy of the decision, court judgment, order or decree obtained against the contractor. No application for an order directing payment out of the guaranty fund shall be made later than two years after the final determination of, or expiration of time for, taking an appeal of said decision, court judgment, order or decree.
(e) Upon receipt of said application together with said copy of the decision, court judgment, order or decree, and true and attested copy of the executing officer's return, the commissioner or his designee shall inspect such documents for their veracity and upon a determination that such documents are complete and authentic, and a determination that the owner has not been paid, the commissioner shall order payment out of the guaranty fund of the amount unpaid upon the decision, judgment, order or decree for actual damages and costs taxed by the court against the contractor, exclusive of punitive damages.
(f) Whenever an owner is awarded an order of restitution against any contractor for loss or damages sustained by reason of performance of or offering to perform a home improvement in this state by a contractor holding a certificate or who has held a certificate under this chapter within two years of the date of entering into the contract with the owner, in a proceeding brought by the commissioner pursuant to 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 20-427, such owner may, upon the final determination of, or expiration of time for, taking an appeal in connection with any such order of restitution, apply to the commissioner for an order directing payment out of said guaranty fund of the amount unpaid upon the order of restitution. The commissioner may issue said order upon a determination that the owner has not been paid.
(g) Before the commissioner may issue any order directing payment out of the guaranty fund to an owner pursuant to subsection (e) or (f) of this section, the commissioner shall first notify the contractor of the owner's application for an order directing payment out of the guaranty fund and of the contractor's right to a hearing to contest the disbursement in the event that the contractor has already paid the owner or is complying with a payment schedule in accordance with a court judgment, order or decree. Such notice shall be given to the contractor not later than fifteen days after receipt by the commissioner of the owner's application for an order directing payment out of the guaranty fund. If the contractor requests a hearing, in writing, by certified mail not later than fifteen days after receiving 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 request by certified mail from the contractor for a hearing not later than fifteen days after the contractor's receipt of such notice, the commissioner shall determine that the owner has not been paid, and the commissioner shall issue an order directing payment out of the guaranty fund for the amount unpaid upon the judgment, order or decree for actual damages and costs taxed by the court against the contractor, exclusive of punitive damages, or for the amount unpaid upon the order of restitution.
(h) The commissioner or his designee may proceed against any contractor holding a certificate or who has held a certificate under this chapter within the past two years of the effective date of entering into the contract with the owner, for an order of restitution arising from loss or damages sustained by any person by reason of such contractor's performance of or offering to perform a home improvement in this state. Any such proceeding shall be held in accordance with the provisions of chapter 54. In the course of such proceeding, the commissioner or his designee shall decide whether to exercise his powers pursuant to section 20-426; whether to order restitution arising from loss or damages sustained by any person by reason of such contractor's performance or offering to perform a home improvement in this state; and whether to order payment out of the guaranty fund. Notwithstanding the provisions of chapter 54, the decision of the commissioner or his designee shall be final with respect to any proceeding to order payment out of the guaranty fund and the commissioner and his designee shall not be subject to the requirements of chapter 54 as they relate to appeal from any such decision. The commissioner or his designee may hear complaints of all owners submitting claims against a single contractor in one proceeding.
(i) No application for an order directing payment out of the guaranty fund shall be made later than two years from the final determination of, or expiration of time for, appeal in connection with any decision, judgment, order or decree of restitution.
(j) Whenever the owner satisfies the commissioner or his designee that it is not practicable to comply with the requirements of subsection (d) of this section and that the owner has taken all reasonable steps to collect the amount of the decision, judgment, order or decree or the unsatisfied part thereof and has been unable to collect the same, the commissioner or his designee may in his discretion dispense with the necessity for complying with such requirement.
(k) In order to preserve the integrity of the 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 owner or less than the order of restitution awarded by the commissioner or the Superior Court. In no event shall any payment out of said guaranty fund be in excess of twenty-five thousand dollars for any single claim by an owner.
(l) If the money deposited in the guaranty fund is insufficient to satisfy any duly authorized claim or portion thereof, the commissioner shall, when sufficient money has been deposited in the fund, satisfy such unpaid claims or portions thereof, in the order that such claims or portions thereof were originally determined.
(m) Whenever the commissioner has caused any sum to be paid from the guaranty fund to an owner, the commissioner shall be subrogated to all of the rights of the owner up to the amount paid plus reasonable interest, and prior to receipt of any payment from the guaranty fund, the owner 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 guaranty fund.
(n) If the commissioner orders the payment of any amount as a result of a claim against a contractor, the commissioner shall determine if the contractor is possessed of assets liable to be sold or applied in satisfaction of the claim on the guaranty fund. If the commissioner discovers any such assets, he may request that the Attorney General take any action necessary for the reimbursement of the guaranty fund.
(o) If the commissioner orders the payment of an amount as a result of a claim against a contractor, the commissioner may, after notice and hearing in accordance with the provisions of chapter 54, revoke the certificate of the contractor and the contractor shall not be eligible to receive a new or renewed certificate until he has repaid such amount in full, plus interest from the time said payment is made from the guaranty fund, at a rate to be in accordance with section 37-3b, except that the commissioner may, in his sole discretion, permit a contractor to receive a new or renewed certificate after that contractor has entered into an agreement with the commissioner whereby the contractor agrees to repay the guaranty 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 contractor if payment is not made in accordance with the terms of the agreement.
(P.A. 88-269, S. 11; P.A. 89-251, S. 150, 203; P.A. 90-233, S. 2; 90-321, S. 5; P.A. 91-325, S. 2; P.A. 94-68, S. 3; P.A. 96-117, S. 3; P.A. 97-129; P.A. 99-74, S. 1, 3; P.A. 04-257, S. 105; P.A. 10-9, S. 6; P.A. 13-196, S. 12, 25; P.A. 15-60, S. 6; P.A. 21-37, S. 38; 21-197, S. 8; P.A. 22-70, S. 6; P.A. 23-99, S. 16.)
History: P.A. 89-251 amended Subsec. (b) to increase the fee for renewal of a salesman's certificate from $20 to $40 and increased the fee for renewal of a contractor's certificate from $50 to $150; P.A. 90-233 amended Subsec. (d) to delete former exclusion of attorney's fees from consideration as part of judgment amount and amended Subsec. (l) to raise maximum payment from guaranty fund from $5,000 to $10,000; P.A. 90-321 amended section to allow claims to be made against fund when contractor held a certificate within the past two years; P.A. 91-325 amended Subsec. (d) by providing for the submission of bona fide documentation to replace the hearing procedure as a means for a homeowner to be reimbursed from the fund, inserted new Subsec. (e), redesignating former Subsec. (e) as Subsec. (f) and expanding the types of proceedings in which a homeowner could recover and specifying that commissioner could only issue an order of disbursement from the fund upon a determination that the owner has not been paid, added new Subsec. (g) requiring notice to the contractor before any disbursement is made from the fund in the event that the contractor has already paid the homeowner, redesignated former Subsec. (f) as Subsec. (h) and amended it to provide that a designee of commissioner could proceed against a contractor and decide whether to exercise the powers under Sec. 20-426, order restitution and whether to order payment out of the guaranty fund, redesignated Subsec. (g) as Subsec. (i) and amended it to expand the period during which an application for disbursement from the fund could be made from one year to two years from the final determination of, or expiration of time for, appeal in connection with any judgment or order of restitution, deleted former Subsecs. (h) and (i) re hearing procedure, made technical changes in Subsec. (j), deleted former Subsec. (k), relettering remaining Subsecs. accordingly, and amended Subsec. (o), formerly (p), to permit commissioner to exercise discretion as to whether to renew a certificate if the contractor had entered an agreement with commissioner whereby payment would be made in periodic payments over a set period of time; P.A. 94-68 amended Subsec. (c) to require deposit of certain surplus moneys in the Consumer Enforcement Protection Fund, replaced “personal property” with “bank accounts” in Subsec. (d)(3), provided for the revocation of a contractor's certificate in Subsec. (o) and made technical corrections; P.A. 96-117 amended Subsec. (b) to waive the annual fee for a contractor of record; P.A. 97-129 amended Subsec. (c) to increase the amount deposited into the Consumer Protection Enforcement Fund from $150,000 to $400,000, and amended Subsec. (d) to provide that Subdiv. (3) requirements shall not apply to judgments obtained by owner in small claims court; P.A. 99-74 made gender neutral change and increased maximum allowable payment from guaranty fund from $10,000 to $15,000 for a single claim, effective May 27, 1999; P.A. 04-257 made a technical change in Subsec. (c), effective June 14, 2004; P.A. 10-9 deleted provisions re certified copy of court judgment in Subsecs. (d) and (e), effective May 5, 2010; P.A. 13-196 amended Subsec. (d)(3) by changing “real property” to “personal property” and amended Subsec. (g) by adding provision re contractor's right to hearing to contest disbursement in the event contractor is complying with payment schedule in accordance with a court judgment, effective June 21, 2013; P.A. 15-60 amended Subsec. (c) by replacing “such fund has an excess” with “the balance in the fund exceeds seven hundred fifty thousand dollars”, amended Subsecs. (d) and (e) by adding references to order or decree, amended Subsec. (g) by changing “shall” to “may” re commissioner issuing order directing payment out of guaranty fund and adding “, order or decree”, amended Subsec. (i) by adding “or decree”, amended Subsec. (j) by adding “, order or decree”, and made technical changes, effective October 1, 2015, and applicable to orders and decrees entered into on or after that date; P.A. 21-37 amended Subsec. (d) to delete “the past” before 2 years and deleted reference to affidavit being notarized and signed and sworn to by the owner, effective June 4, 2021; P.A. 21-197 amended Subsec. (b) to designate existing provision as Subdiv. (1) and add Subdiv. (2) re opting to engage in home improvement, amended Subsec. (d) to add references to binding arbitration decision, delete “the past” before “two years”, delete provisions re notarized affidavit by owner, Subdivs. (1) to (3) and delete provision re executing officer's return, amended Subsec. (e) to add references to “decision” and delete “notarized affidavit”, amended Subsec. (f) to delete “the past” before “two years”, amended Subsec. (i) to add “decision”, amended Subsec. (j) to make a technical change and add “decision” and amended Subsec. (k) to increase maximum payment from guaranty fund from $15,000 to $25,000, effective July 1, 2022; P.A. 22-70 made a technical change in Subsec. (g), effective July 1, 2022; P.A. 23-99 amended Subsec. (b) by substituting reference to Sec. 20-417b(f) for reference to Sec. 20-417b(g), effective June 29, 2023.
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