HB 5272 — AN ACT CONCERNING THE ENFORCEMENT OF REQUIREMENTS IMPOSED BY CERTAIN MUNICIPAL APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY FUND.

SubsectionSection (c)22a-44 of section 8-3c of the general statutes is repealed and the following is substituted in lieu thereof (Effective fromOctober passage):1, 2024):

(c)(a) (1)If Notwithstanding the provisionsinland ofwetlands subsectionsagency (a)or andits (b)duly ofauthorized thisagent section,finds that any specialperson permitis conducting or specialmaintaining exceptionany approvalactivity, madefacility under this section [prior to July 1, 2011] on or beforecondition June[which] 10, 2021, that hasis notin expiredviolation [priorof to]sections on22a-36 orto before22a-45, Julyinclusive, 12,or 2021,of exceptthe asregulations provided in subdivision (2) of thisthe subsection,inland andwetlands thatagency, specifiedthe aagency deadlineor byits whichduly allauthorized workagent inmay connectionissue witha suchwritten approvalorder, isby requiredcertified mail, to besuch completed,shallexpirenotlessthannineteenyearsafterthedateofsuchperson approvalconducting andsuch theactivity commissionor maymaintaining grantsuch onefacility or morecondition extensionsto ofcease timeimmediately tosuch completeactivity all or partto ofcorrect the work in connection with such specialfacility permit or specialcondition. exception.

(2)[Within] NotwithstandingNot themore provisions of subsections (a) and (b) of this section, a commission that has granted any special permit or special exception approval [made] under this section on or [after July 1, 2011, but prior to June 10, 2021, that did not expire prior to March 10, 2020, and that specified a deadline by which all work in connection with such approval is required to be completed, shall expire not less than nineteenten yearsdays [of] after the dateissuance of such approvalorder, and the commissionagency mayshall granthold onea orhearing more extensions of time to completeprovide all or part of the workperson in connectionwithsuchspecialpermit or specialexception]before June10, 2021, that has not expired on or before July 12, 2021, may, by affirmative vote of the commission, set an earlieropportunity dateto uponbe whichheard suchand permitshow orcause approvalwhy shall expire, provided the commissionorder (A)sHB5272 holds/ aFile public hearing on such proposed earlier date in accordance with the provisions LCO 5 of 17 Substitute Bill No.

5272638 ofsHB5272 sectionFile 8-7d,No. and (B) finds that (i) because of incomplete or substandard work undertaken in connection with the permit or approval, a condition exists that poses a significant hazard to the public, or (ii) no work required in connection with the permit or approval has been performed in the previous five years.

638 should not remain in effect.

The agency shall consider the facts presented at the hearing and within ten days of the completion of the hearing notify the person by certified mail that the original order remains in effect, that a revised order is in effect, or that the order has beenwithdrawn.

The originalorder shallbeeffective uponissuance and shall remain in effect until the agency affirms, revises or withdraws the order.

The issuance of an order pursuant to this section shall not delay or bar an action pursuant to subsection (b) of this section.

The agency may file a certificate of such order in the office of the town clerk of the town in which the land is located and the town clerk shall record such certificate on the land records of such town.

Such certificate shall be released upon compliance with such order.

The commissioner may issue orders pursuant to sections 22a-6 to 22a-7, inclusive, concerning an activity, facility or condition (1) [which] that is in violation of said sections 22a-36 to 22a-45, inclusive, if the municipality in which such activity, facility or condition is located has failed to enforce its inland wetlands regulations, or (2) for which an approval is required under sections 22a-36 to 22a-45, inclusive, and for which such approval hasnot been obtained.

(b) Any person who commits, takes part in, or assists in any violation of any provision of sections 22a-36 to 22a-45, inclusive, including regulations adopted by the commissioner and ordinances and regulations promulgated by municipalities or districts pursuant to the grant of authority herein contained, shall be assessed a civil penalty of not more than one thousand dollars for each offense.

Each violation of said sections shall be a separate and distinct offense, and, in the case of a continuing violation, each day's continuance thereof shall be deemed to be a separate and distinct offense.

The Superior Court, in an action brought by the commissioner, municipality, district or any person, shall have jurisdiction to restrain a continuing violation of said sections, to issue orders directing that the violation be corrected or removed and to assess civil penalties pursuant to this section.

All costs, fees and expenses in connection with such action shall be assessed as damages against the violator together with reasonable attorney's fees which may sHB5272 / File No.

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638 be allowed, all of which shall be awarded to the commissioner, municipality, district or person which brought such action.

All penalties collected pursuant to this section shall be used solely by the Commissioner of Energy and Environmental Protection (1) to restore the affected wetlands or watercourses to their condition prior to the violation, wherever possible, (2) to restore other degraded wetlands or watercourses, (3) to inventory or index wetlands and watercourses of the state, or (4) to implement a comprehensive training program for inland wetlands agency members.

(c) Any person who wilfully or knowingly violates any provision of sections 22a-36 to 22a-45, inclusive, shall be fined not more than one thousand dollars for each day during which such violation continues or be imprisoned not more than six months or both.

For a subsequent violation,suchpersonshallbefinednotmorethantwothousanddollars for each day during which such violation continues or be imprisoned not more than one year or both.

For the purposes of this subsection, "person" shall be construed to include any responsible corporate officer.

(d) For the purposes of this subdivision, "incomplete work" means any physical improvement required by the inland wetlands approval that is incomplete due to a suspension in construction, and "business" means a sole proprietorship, trust, corporation, limited liability company, union, association, firm, partnership or other organization or group of persons.

The authorized agent of the inland wetlands agency, or where no such agent has been appointed, the zoning enforcement officer, may initiate an enforcement action pursuant to section 8-12, as amended by this act, against a business required to complete work in connection with an inland wetland approval if(1) such approval has not expired, (2) work required pursuant to such approval has been suspended before completion and the agent, or the zoning enforcement officer if no such agent has been appointed, determines the business has no intent to resume such work within a reasonable time period, and (3) (A) the agent, or the zoning enforcement officer if no such agent has been appointed, determines that the incomplete work creates a condition constituting a public health or safety hazard, or (B) the agent, sHB5272 / File No.

638 sHB5272 File No.

638 or the zoning enforcement officer if no such agent has been appointed, has received and verified a complaint from one or more property owners alleging damage to persons or property resulting from the public health or safety hazard caused by such incomplete work.

SubsectionSection (b)20-417a of section 8-26e of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(b) (1) Notwithstanding the provisions of subsection (a) of this section, any special permit or special exception approval made under this section [prior to July 1, 2011] on or before June 10, 2021, that has not expired[priorto]onorbeforeJuly12,2021,andthatspecifiedadeadline by which all work in connection with such approval is required to be completed, except asprovidedinsubdivision(2)ofthissubsection, shall expire not less than nineteen years after the date of such approval and the commission may grant one or more extensions of time to complete all or part of the work in connection with such special permit or special exception.

(2) Notwithstanding the provisions of subsection (a) of this section, a commission that has granted any special permit or special exception approval [made] under this section on or [after July 1, 2011, but prior to June 10, 2021, that did not expire prior to March 10, 2020, and that specifieda deadlineby whichallwork inconnectionwithsuchapproval is required to be completed, shall expire not less than nineteen years after the date of such approval and the commission may grant one or more extensionsoftime to complete allor part ofthework inconnection with such special permit or special exception] before June 10, 2021, that has not expired on or before July 12, 2021, may, by affirmative vote of the commission, set an earlier date upon which such permit or approval shall expire, provided the commission (A) holds a public hearing on such proposed earlier date in accordance with the provisions of section 8-7d, and (B) finds that (i) because of incomplete or substandard work undertakeninconnectionwiththepermitorapproval,aconditionexists LCO 6 of 17 Substitute Bill No.

5272 that poses a significant hazard to the public, or (ii) no work required in connection with the permit or approval has been performed in the previous five years.

Sec.

7.

Section 8-3k of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(a) (1) Notwithstanding the provisions of any special act, any site plan, subdivision or permit approval by a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency pursuant to the provisions of any such special act that occurred [prior to July 1, 2011] on or before June 10, 2021, andthat hasnot expired [priorto]onorbefore July 12,2021,except as provided in subdivision (2) of this subsection, shall expire not less than fourteen years after the date of such approval and such commission, board or agency, as applicable, may grant one or more extensions of time to complete all or part of the work in connection with such approval, provided no approval, including all extensions, shall be valid for more than nineteen years from the date the site plan, subdivision or permit was initially approved.

(2) Notwithstanding the provisions of any special act, a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency that hasapproved any site plan,subdivisionor permit [approvalby azoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency] pursuant to the provisions of any such special act [that] when such approval occurred on or [after July 1, 2011, but prior to July 10, 2021, and that did not expire prior to March 10, 2020, shall expire not less than fourteen years after the date of such approval and such commission, board or agency, as applicable, may grant one or more extensions of time to complete all or part of the work in connection with such approval, provided no approval, including all extensions, shall be valid for more than nineteen years from the date the site plan, subdivision or permit was initially approved] before June 10, 2021, and has not expired LCO 7 of 17 Substitute Bill No.

5272 on or before July 12, 2021, may, by affirmative vote of the zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency, set an earlier date upon which such approval shall expire, provided such commission, board or agency (A) holds a public hearing on such proposed earlier date in accordance with the provisions of section 8-7d, and (B) finds that (i) because of incomplete or substandard work undertaken in connection with the approval, a condition exists that poses a significant hazard to the public, or (ii) no work required in connection with the approval has been performed in the previous five years.

(b) (1) Notwithstanding the provisions of any special act, any special permit or special exception approval by a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency pursuant to the provisions of any such special act that occurred [prior to July 1, 2011] on or before June 10, 2021, that has not expired [prior to] on or before July 12, 2021, and that specifieda deadlineby whichallwork inconnectionwithsuchapproval is required to be completed, except as provided in subdivision (2) of this subsection, shall expire not less than nineteen years after the date of such approval and such commission, board or agency, as applicable, may grant one or more extensions of time to complete all or part of the work in connection with such special permit or special exception approval.

(2) Notwithstanding the provisions of any special act, a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency that has approved any special permit or special exception [approval by a zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency] pursuant to the provisions of any such special act [that] when such approval occurred on or [after July 1, 2011, but prior to June 10, 2021, that did not expire prior to March 10, 2020, and that specified a deadlinebywhichallworkinconnectionwithsuchapprovalisrequired LCO 8 of 17 Substitute Bill No.

5272 to be completed, shall expire not less than nineteen years after the date of such approval and such commission, board or agency, as applicable, may grant one or more extensions of time to complete all or part of the work in connection with such special permit or special exception approval] before June 10, 2021, and has not expired on or before July 12, 2021, may, by affirmative vote of the zoning commission, planning commission, combined planning and zoning commission, zoning board of appeals or inland wetlands agency, set an earlier date upon which such approval shall expire, provided such commission, board or agency (A) holds a public hearing on such proposed earlier date in accordance with the provisions of section 8-7d, and (B) finds that (i) because of incomplete or substandard work undertaken in connection with the approval, a condition exists that poses a significant hazard to the public, or (ii) no work required in connection with the approval has been performed in the previous five years.

Sec.

8.

Section 20-417a of the general statutes is repealed and the following is substituted in lieu thereof (Effective October 1, 2024):

(3) "Contract""Completion" means anythe agreementstage betweenof construction of a new home in which the new home construction contractor andis ain consumerreceipt forof the constructioncertificate orof saleoccupancy offor asuch new home orissued anyby portionthe ofmunicipality ain which such new home prioris toconstructed; occupancy;

(4) "Controlling"Consumer" participant" means anthe individualbuyer whoor exercisesprospective day-buyer, to-dayor financialthe buyer's or operationalprospective controlbuyer's heirs or designated representatives, of aany businessnew entityhome thator isthe owner of property on which a new home constructionis contractor;being or will be constructed regardlessof whether such owner obtains a building permit as the owner of the premises affected pursuant to section 29-263;

[(4)][(3)] (5) "Engage"Contract" inmeans theany business"agreement meansbetween thata new home construction contractor and a consumer for the personconstruction engagesor insale LCOof 9a new home or any portion of 17a Substitutenew Billhome No.prior to occupancy;

5272[(4)] (6) "Engage in the business" means that the person engages in the business for the purpose of compensation or profit;

[(5)](7) (6) "New homehome" construction contractor" means any personnewly whoconstructed contractswithaconsumertoconstructorsellanewhomeoranyportion(A) single-family dwelling unit, (B) dwelling consisting of not more than two units, or (C) unit, common element or limited common element in a newcondominium, homesHB5272 prior/ toFile occupancy;No.

[(6)]638 (7)sHB5272 "NewFile home"No. means any newly constructed (A) single-family dwelling unit, (B) dwelling consisting of not more than two units, or (C) 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;

[(7)]638 (8)as "Person"defined meansin onesection 47-68a, or morein individuals,a partnerships,common associations,interest corporations,community, limitedas liabilitydefined companies,in businesssection trusts,47-202; legal representatives or any organized group of persons;

[(8)][(5)] (9)(8) "Consumer""New meanshome theconstruction buyercontractor" ormeans prospective buyer, or the buyer's or prospective buyer's heirs or designated representatives, of any newperson homewho orcontractswithaconsumertoconstructorsellanewhomeoranyportion the owner of property on which a new home isprior being or will be constructed regardless of whether such owner obtains a building permit as the owner of the premises affected pursuant to sectionoccupancy; 29-263;

and[(6) [(9)](10)"Completion"meansthestageofconstructionofanewhome"New inhome" whichmeans theany newnewly homeconstructed construction(A) contractorsingle-family isdwelling inunit, receipt(B) dwelling consisting of thenot certificatemore ofthan occupancytwo forunits, suchor new(C) homeunit, issuedcommon byelement theor municipalitylimited common element in whicha suchcondominium, newas homedefined isin constructed.section 47-68a, or in a common interest community, as defined in section 47-202;] [(7)] (9) "Person" means one or more individuals, partnerships, associations, corporations, limited liability companies, business trusts, legal representatives or any organized group of persons;

Sec.9.Subsections(c)to(n),inclusive,ofsection20-417iofthegeneraland statutes[(8) are"Consumer" repealedmeans andthe buyer or prospective buyer, or the followingbuyer's isor substitutedprospective inbuyer's lieuheirs thereofor (Effectivedesignated Julyrepresentatives, 1,of 2024,any andnew effectivehome foror fiscalthe yearsowner commencingof property on which a new home is being or afterwill Julybe 1,constructed 2024):regardlessof whether such owner obtains a building permit as the owner of the premises affected pursuant to section 29-263;

and (9) "Completion" means the stage of construction of a new home in which the new home construction contractor is in receipt of the certificate of occupancy for such new home issued by the municipality in which such new home is constructed.] (10) "Proprietor" means an individual who (A) has an ownership interest in a business entity that holds or has held a certificate issued under section 20-417b, and (B) has been found by a court of competent jurisdiction to have violated any provision of this chapter related to the conduct of a business entity holding a certificate or that has held a certificate issued under section 20-417b within the two years of the effective date of entering into a contract with a consumer harmed by the actions of such business entity or the owner of such business entity.

sHB5272 / File No.

638 sHB5272 File No.

638 Sec.

7.

Section 20-417i of the general statutes is repealed and the following is substituted in lieu thereof (Effective from passage):

(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 20-417j, inclusive, as amended by this act, shall pay a fee of two hundred forty dollars annually to the New Home Construction Guaranty Fund.

Such fees shall be payable with the fee for an application for a certificate or renewal of a certificate.

Annually, if the balance in LCOthe 10fund exceeds [seven] six hundred fifty thousand dollars, the first [three] four hundred thousand dollars of 17the Substituteexcess Billshall No.be deposited in the consumer protection enforcement account established in section 21a-8a.

5272 the fund exceeds [seven] six hundred fifty thousand dollars, the first [three] four hundred thousand dollars of the excess shall be deposited in the consumer protection enforcement account established in section 21a-8a.

(d) Whenever a consumer obtains a binding arbitration decision, a court judgment, order or decree against or regarding any new home constructioncontractorholding a certificate or who has helda certificate under sections 20-417a to 20-417j, inclusive, as amended by this act, or against ora regardingproprietor, any controlling participant, within two years of the date [of entering] such contractor entered into the contract with the consumer, for loss or damages sustained by reason of any violation of the provisions of sectionssections20-417ato20-417j,inclusive,asamendedbythisact,byaperson 20-417a to 20-417j, inclusive, as amended by this act, by a person holding a certificate under said sections, such consumer may, uponthefinaldetermination of,or expirationoftime for taking, an appeal in connection with any such decision, judgment, order or decree, apply to thecommissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount, not exceeding [thirty] fifty thousand dollars, unpaid upon the decision,sHB5272 judgment,/ orderFile orNo. decree for actual damages and costs taxed by the court against such contractor or controlling participant, exclusive of punitive damages.

The638 applicationsHB5272 shallFile beNo. 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 new home construction contractor or controlling participant together with a statement signed and sworn to by the consumer, affirming that the consumer has:

(1)Compliedwithalltherequirementsofthissubsection;638 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 the New Home Construction Guaranty Fund of the amount, not exceeding [thirty] fifty thousand dollars, unpaid upon the decision, judgment, order or decree for actual damages and costs taxed by the court against such contractor or proprietor, exclusive of punitive damages.

(2)The obtainedapplication ashall decision,be judgment,made orderon orforms decreeprovided statingby the amountcommissioner and shall be accompanied by a copy of the decision, court judgment, order or decree andobtained against the amountnew owinghome onconstruction thecontractor LCOor 11proprietor oftogether 17with Substitutea Billstatement No.signed and sworn to by the consumer, affirming that the consumer has:

5272(1) decision,Complied judgment,with orderall or decree at the daterequirements of application;this subsection;

and(2) (3)obtained made a gooddecision, faithjudgment, effortorder toor satisfydecree anystating suchthe amount of the decision, judgment, order or decree and the amount owing on the decision, judgment, order or decree at the date of application;and(3) madeagoodfaithefforttosatisfy any suchdecision, judgment, order or decree in accordance with the provisions of chapter 906906, which effort mayincludecausingtomay beissuedawritofexecutionuponsuchdecision,include causing to be issued a writ of execution upon such decision, judgment, order or decreedecree, but[but] provided the officer executing the same has made a return showing that no bank accountsaccountsor orpersonalproperty personalofsuchcontractor propertyliabletobeleviedupon ofinsatisfactionofthedecision,judgment,orderor such contractor liable to be levied upon in satisfaction of the decision, judgment, order or decree couldcouldbefound, 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 decision, judgment, order or decree or stating the amount realized and the balance remaining due on the decision, judgment, order or decree after application on the decision, judgment, order or decree of the amount realized, except that the requirements of this subdivision shall not apply to a judgment, order or decree obtained by the consumer in small claims court.

Whenever the consumer satisfies the commissioner or thecommissioner'sthe commissioner's designee that it is not practicable to comply with the requirementsrequirementsofsubdivision(3) ofofthis subdivisionsubsectionandthat (3)theconsumer of this subsection and that the consumer has taken all reasonable steps to collect the amount of the decision, judgment,sHB5272 order/ orFile decreeNo. or the unsatisfied part of the decision, judgment, order or decree and has been unable to collect the same, the commissioner or the commissioner's designee may, in the commissioner's or the commissioner's designee's discretion, dispense with the necessity for complying with such requirement.

638 sHB5272 File No.

638 judgment, order or decree or the unsatisfied part of the decision, judgment, order or decree and has been unable to collect the same, the commissioner or the commissioner's designee may, in the commissioner's or the commissioner's designee's discretion, dispense with the necessity for complying with such requirement.

(e) Upon receipt of such application together with such copy of the decision, court judgment, order or decree, statement and, except as otherwise provided in subsection (d) of this section, a true and attested copy of the executing officer's return, the commissioner or the LCOcommissioner's 12designee shall inspect such documents for their veracity and upon a determination that such documents are complete and authentic and that the consumer has not been paid, the commissioner shall order payment out of 17the SubstituteNew BillHome No.Construction Guaranty Fund of the amount not exceeding [thirty] fifty thousand dollars unpaid upon the decision, judgment, order or decree for actual damages and costs taxed by the court against the contractor or proprietor, exclusive of punitive damages.

5272(f) commissioner's[Beginning] designee(1) shallDuring inspectthe suchperiod documentsbeginning foron theirOctober veracity1, 2000, and uponending on the date immediately preceding the effective date of this section, whenever a determinationconsumer thatis suchawarded documentsan areorder completeof andrestitution authenticagainst andany thatnew home construction contractor for loss or damages sustained as a result of any violation of the consumerprovisions of sections 20-417a to 20-417j, inclusive, as amended by this act, by a person holding a certificate or who has notheld beena paid,certificate theunder commissionersaid shallsections orderwithin paymenttwo outyears of the Newdate Homeof Constructionentering Guarantyinto Fundthe ofcontract with the amountconsumer, notin exceeding[(1)] [thirty](A) fiftya thousandproceeding dollarsbrought unpaidbythecommissioner uponpursuant theto decision,subsection judgment,[(h)] order(i) of this section or decreesubsection for(d) actualof damagessection and42-110d, costs[(2)] taxed(B) a proceeding brought by the courtAttorney againstGeneral thepursuant contractorto orsubsection controlling(a) participant,of exclusivesection 42-110m, or subsection (d) of punitivesection damages.42-110d, or [(3)] (C) a criminal sHB5272 / File No.

(f)638 BeginningsHB5272 OctoberFile 1,No. 2000, whenever a consumer is awarded an order of restitution against any new home construction contractor, or a controlling participant, for loss or damages sustained as a result of any violation of the provisions of sections 20-417a to 20-417j, inclusive, as amended by this act, by a person holding a certificate or who has held a certificate under said sections within two years of the date [of entering] such contractor entered into the contract with the consumer, in (1) a proceeding brought bythecommissioner pursuant to subsection [(h)] (i) of this section or subsection (d) of section 42-110d, (2) a proceeding brought by the Attorney General pursuant to subsection (a) of section 42-110m or subsection (d) of section 42-110d, or (3) a criminal proceeding pursuant to section 20-417e, such consumer 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 the New Home Construction Guaranty Fund of the amount not exceeding [thirty] fifty thousand dollars unpaid upon the order of restitution.

638 proceeding pursuant to section 20-417e, such consumer 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 the New Home Construction Guaranty Fund of the amount not exceeding [thirty] fifty thousand dollars unpaid upon the order of restitution.

(g)(2) WheneverBeginning on the commissionereffective ordersdate paymentof tothis section, whenever a consumer outis awarded an order of therestitution Newagainst Homeany Constructionnew Guarantyhome Fundconstruction basedcontractor uponor proprietor for loss or damages sustained as a decision,result judgment,of orderany orviolation decreeof the provisions of restitutionsections against20-417a ato controlling20-417j, participant,inclusive, bothas suchamended controllingby participantthis andact, theby newa homeperson constructionholding contractora certificate or who has held a certificate under said sections within two years of the date such contractor entered into athe contract with the consumer, in (A) a proceeding brought by the commissioner pursuant to subsection (i) of this section or subsection (d) of section 42-110d, (B) a proceeding brought by the Attorney General pursuant to subsection (a) of section 42-110m or subsection (d) of section 42-110d, or (C) a criminal proceeding pursuant to section 20-417e, such consumer shallmay, beupon liablethe final determination of, or expiration of time for thetaking, resultingan debtappeal in connection with any such order of restitution, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund.Fund of the amount not exceeding fifty thousand dollars unpaid upon the order of restitution.

LCOThe 13commissioner ofmay 17issue Substitutesuch Billorder No.upon a determination that the consumer has not been paid.

5272(g) [(g)]Whenever (h) Before the commissioner mayorders issuepayment anyto ordera directingconsumer payment out of the New Home Construction Guaranty Fund tobased upon a consumerdecision, pursuantjudgment, toorder subsection (e) or (f)decree of thisrestitution, section, the commissioner shall first notify the new home construction contractor orand controllingproprietor participantshall ofbe theliable consumer's application for an order directing payment out of the fundresulting anddebt of the new home construction contractor's or controlling participant's right to a hearing to contest the disbursementNew intheeventHome thatConstruction suchGuaranty contractorFund. or controlling participant has already paid the consumer.

[(g)] (h) Before the commissioner may issue any order directing sHB5272 / File No.

638 sHB5272 File No.

638 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 fund and of the new home construction contractor's right to a hearing to contest the disbursement in the event that such contractor or proprietor has already paid the consumer.

If the commissioner does not receive awrittenrequest for ahearing by certifiedmailfromthenew home construction 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] fifty thousand dollars unpaid upon the judgment, order or decree for actual damages and costs taxed by the court against the new home construction contractor or controllingproprietor, participant, exclusive of punitive damages, or for the amount not exceeding [thirty] fifty thousand dollars unpaid upon the order of restitution.

[(h)] (i) 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 20-417j, inclusive, as amended by this act, within two years of the effective date of entering into the contract with the consumer, or a controlling participant, 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 20-417a to 20-417j,20- 417j, inclusive, by the contractor or LCOproprietor. 14 of 17 Substitute Bill No.

5272Any controllingparticipant.Anysuchproceedingshallbeheldinaccordancesuch proceeding shall be held in accordance with the provisions of chapter 54.

In the course of such proceeding, the commissioner or the commissioner's designeesHB5272 shall/ decideFile whetherNo. to (1) exercise the powers specified in section 20-417c, (2) 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 20-417j, inclusive, as amended by this act, and (3) order payment out of the New Home Construction Guaranty Fund.

638 sHB5272 File No.

638 designee shall decide whether to (1) exercise the powers specified in section 20-417c, (2) 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 20-417j, inclusive, as amended by this act, and (3) order payment out of the New Home Construction Guaranty Fund.

The commissioner or the commissioner's designee may hear complaints of allconsumerssubmittingall claimsagainstconsumers asinglenewhomeconstructionsubmitting claims against a single new home construction contractor in one proceeding.

[(i)] (j) 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 ofof, [, or expiration of time for, an appeal in connection with]with any judgment, order or decree of restitution, and no such application shall be for an amount in excess of [thirty] fifty thousand dollars.

[(k)] (l) 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 LCOclaims 15not exceeding [thirty] fifty thousand dollars, in the order that such claims or portions of 17claims Substitutewere Billoriginally No.determined.

5272sHB5272 claims/ notFile exceedingNo. [thirty] fifty thousand dollars, in the order that such claims or portions of claims were originally determined.

[(l)]638 (m)sHB5272 WheneverFile theNo. 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 the consumer's 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 in the fund.

[(m)]638 (n)[(l)] If(m) Whenever the commissioner ordershas caused any sum to be paid from the paymentNew ofHome anyConstruction amountGuaranty asFund to a resultconsumer, the commissioner shall be subrogated to all of athe claimrights againstof athe newconsumer homeup constructionto contractor,the oramount apaid controllingplus participant,reasonable interest, and prior to receipt of any payment from the commissionerfund, the consumer shall determineassign ifall suchof contractorthe orconsumer's controllingright, participanttitle isand possessedinterest ofin assetsthe liableclaim up to besuch soldamount orto appliedthe incommissioner, satisfactionand ofany amount and interest recovered by the claimcommissioner on the Newclaim Homeshall Constructionbe Guarantydeposited Fund.in the fund.

[(m)] (n) If the commissioner orders the payment of any amount as a result of a guaranty fund claim against a new home construction contractor or proprietor, the commissioner shall determine if such contractor is possessed of assets liable to be sold or applied in satisfaction of the claim on the New Home Construction Guaranty Fund.

[(n)] (o) If the commissioner orders the payment of an amount as a result of a guaranty fund claim against a new home construction contractor, or a controlling participant, the commissioner may, after notice and hearing in accordance with the provisions of chapter 54, revoke the certificate of such contractor and such contractor shall not be eligible to receive anew or renewed certificate until such contractor has repaid such amount in full, plus interest from the time such 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 contractor has entered into an agreement with the commissioner whereby such 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 LCOconstruction 16contractor ofif 17payment Substituteis Billnot No.made in accordance with the terms of the agreement.

5272sHB5272 construction/ contractorFile ifNo. payment is not made in accordance with the terms of the agreement.

This638 actsHB5272 shallFile takeNo. effect as follows and shall amend the following sections:

Section638 1This fromact passageshall 8-3(m)take Sec.effect as follows and shall amend the following sections:

2Section from1 passageJuly 8-26c(e)1, 2024 8-3(m) Sec.

32 fromOctober passage1, 8-26g(c)2024 8-12 Sec.

43 fromOctober passage1, 22a-42a(g)2024 8-12a Sec.

54 fromOctober passage1, 8-3c(c)2024 8-26c(e) Sec.

65 fromOctober passage1, 8-26e(b)2024 22a-44 Sec.

76 from passage 8-3k20-417a Sec.

87 Octoberfrom 1,passage 202420-417i 20-417asHB5272 Sec./ File No.

9638 July18 1,sHB5272 2024,File andNo. effective 20-417i(c) to (n) for fiscal years commencing on or after July 1, 2024 PD Joint Favorable Subst.

APP638 JointThe Favorablefollowing LCOFiscal 17Impact Statement and Bill Analysis are prepared for the benefit of 17the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 25 $ FY 26 $ Consumer Protection, Dept.

New Home See Below See Below Construction Guaranty Fund - Various Consumer Protection, Dept.

Consumer See Below See Below Protection Enforcement Account - Potential Revenue Gain Note:

GF=General Fund Municipal Impact:

Municipalities Effect FY 25 $ FY 26 $ All Municipalities Potential See Below See Below Revenue Gain Explanation The bill makes various changes regarding the expiration of land use approvals and the New Home Construction Guaranty Fund resulting in the impact described below.

Sections 1-5:

allow municipalities to take enforcement action when certain zoning regulations are violated regarding incomplete work.

This results in a potential revenue gain to municipalities beginning in FY 25 to the extent that fines are imposed by zoning enforcement officers.

Sections 6-7 makes various changes to the New Home Construction Guaranty Fund and the Consumer Protection Enforcement account sHB5272 / File No.

638 sHB5272 File No.

638 resulting in the following impacts.

1.

The cap on the New Home Construction Guaranty Fund 1 (NHCGF) is reduced from $750,000 to $650,000 resulting in a potentialrevenue lossto thefundto theextentfuture revenues exceed the cap.

2.

The excess transfer from NHCGF to the Consumer Protection Enforcement account is increased from $300,000 to $400,000 resulting in a potential revenue gain to the extent excess funding is transferred.

2 3.

The maximum payment per claim from the NHCGF is increased from $30,000 to $50,000 and consumers are allowed to make claims against the fund if a judgement is awarded against a proprietor resulting in a potential cost to the fund depending on the number and size of future claims.

4.

New home construction contractors and proprietors are held liable for the resulting debt to the fund resulting in a potential revenue gain to the NHCGF to the extent violations occur and contractors and proprietors repay the Fund.

House "A" strikes the underlying bill and its associated fiscal impact resulting in the impact described above.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future subject to the number of claims paid by the fund.

1The New Home Construction Guaranty Fund can reimburse consumers who are unable to collect for losses resulting from work performed by a registered new home builder.

Homeowners may be eligible to receive up to $30,000 from the fund if certain criteria are met.

2In FY 23 there were two restitution claims paid from the fund totaling $60,000 and $101,000 was transferred to the Consumer Protection Enforcement Account.

3Current law only allows for payments from the fund for judgments against construction companies.

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638 OLR Bill Analysis sHB 5272 (as amended by House "A")* AN ACT CONCERNING THE EXPIRATION OF CERTAIN LAND USE APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY FUND.

SUMMARY This bill allows zoning enforcement officers (ZEOs) to take enforcement action against a business that suspends work required by anunexpiredsiteplan,subdivision,orinlandwetlandsapproval.Under the bill, the ZEO may generally do so if he or she determines the business has no intent to resume the work within a reasonable time period and (1) finds the incomplete work creates a public health or safety hazard or (2) receives a complaint alleging it caused personal or property damage.

The bill appears to treat these businesses like violatorsofzoningregulationsbyallowingthe(1)ZEOtopursuecertain enforcement actions that apply to zoning violations (e.g., written orders and civil fines under CGS § 8-12) and (2) municipality to fine violators (up to $150 per day) if it adopts an ordinance to do so.

Separately, the bill expands eligibility for the New Home Construction Guaranty Fund.

It allows consumers to recuperate money from the fund for judgments awarded against certain individuals with an ownership interest in a new home construction company who violated certain laws.

It also makes these individuals and contractors liable for consumer payouts from the fund that result from a judgment against them.

With respect to the home guaranty fund, the bill also (1) increases, from $30,000 to $50,000 per claim, the maximum amount consumers may recuperate from the fund and (2) lowers, from $750,000 to $650,000, the fund’s annual cap.

It correspondingly increases (from $300,000 to $400,000)thefunds exceeding thiscapthat must beannually transferred into the Consumer Protection Enforcement Account.

Existing law sHB5272 / File No.

638 21 sHB5272 File No.

638 requires any remaining excess to be transferred into the General Fund.

Lastly, the bill makes technical and conforming changes.

*House Amendment “A” primarily (1) eliminates the underlying bill’s provisions allowing local land use authorities to move up certain approvals’ expiration dates;

(2) adds the provisions allowing ZEOs to take enforcement actions against businesses suspending required work;

and (3) in provisions on the guaranty fund, replaces references to individuals with financial or operational control of a new home construction company with references to, and requirements for, “proprietors.” EFFECTIVE DATE:

October 1, 2024, except the provision on site plan approvals is effective July 1, 2024, and the guaranty fund provisions are effective upon passage.

§§ 1-5 — BUSINESSES SUSPENDING WORK REQUIRED BY CERTAIN LAND USE APPROVALS Enforcement Actions Under State Zoning Law State lawauthorizesmunicipalzoning officials(e.g., ZEOs)to enforce zoning regulations.

This authority includes instituting actions and other proceedings to (1) prevent unlawful construction, alterations, or use;

(2) restrain, correct, or abate zoning violations;

or (3) prevent occupancy of violative buildings or land or other illegal acts in or on them.

CGS § 8- specifies that these enforcement actions and proceedings include issuing written orders to remedy conditions that violate zoning regulations and seeking civil and criminal penalties in Superior Court (see BACKGROUND).

The bill expands the reasons for which zoning officials may initiate enforcement actions under CGS § 8-12 to include addressing public health or safety hazards related to suspended work required in connection with certain land use approvals.

It specifically authorizes ZEOs(or authorizedagentsofaninlandwetlandsagency,asapplicable) to take enforcement actions against “businesses” that suspend work required by unexpired site plan, subdivision (with less than 400 units), or inland wetlands approvals.

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638 22 sHB5272 File No.

638 Under the bill, a ZEO or authorized agent may take enforcement action if he or she determines the business has no intent to resume the work within a reasonable time period and (1) finds the incomplete work (i.e., physical improvements that the approval required but that are incomplete due to constructionbeing suspended)createsapublichealth or safety hazard or (2) receives and verifies a property owner’s complaint alleging these hazards caused personal or property damage.

(It is unclear if the suspended work must be the direct cause of the damage and whether a ZEO is authorized to make this determination, or if a property owner need only allege it.

Additionally, the bill does not specify how a ZEO must determine a business’s intent or what constitutes a “reasonable time” to resume work.) While the bill appears to apply the enforcement actions authorized under CGS § 8-12 (which apply only to zoning violations) to the work suspensions described above, it is unclear if the bill establishes these work suspensions as zoning violations.

Under the bill, a business is a sole proprietorship, trust, corporation, limited liability company, union, association, firm, partnership, or other organization or group of people.

Municipal Citations Under existing law, any municipality may establish, by ordinance, penalties for violations of its zoning regulations.

The bill additionally allows municipalities to establish penalties related to violations of enforcement actions the bill authorizes (i.e., against businesses that suspend work required by a site plan, subdivision, or inland wetlands approval, as described above).

It is unclear what would constitute a “violation” in the context of the bill’s authorization for ZEOs to institute enforcement actions.

Under existing law and the bill, the ordinance must establish the types of violations for which a citation may be issued and the amount of any fine to be imposed (up to $150 for each day the violation continues), whichare payable to the municipality’streasurer.By law,these citations may be contested through a municipal hearing procedure and appealed to Superior Court.

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638 §§ 6 & 7 — NEW HOME CONSTRUCTION GUARANTY FUND Under current law, a consumer who is awarded a judgment (e.g., a binding arbitration decision, court judgment, order, or decree) against a registered new home construction contractor but is unable to satisfy the judgment (i.e., get payment from the contractor) may apply to the Department of Consumer Protection (DCP) to instead recuperate the judgment amount (up to a specified maximum) from the New Home Construction Guaranty Fund.

(New home construction contractors annually pay into this fund when renewing their registrations.) Under the bill, consumers may also recuperate money from the fund if the judgment was awarded against certain individuals with an ownershipinterestinanewhomeconstructioncompanywhohavebeen found by a court to have violated certain laws (i.e., “proprietors”).

More specifically, to qualify as a “proprietor,” the person must meet two criteria.

First, he or she must have an ownership interest in a new home construction company that is currently, or was previously, registered by DCP.

Second, he or she must have been found by a court to have violated the state’s new home construction contractor laws for the company’s conduct.

The company must either be currently registered asa newhome constructioncompany or have beenregistered within two years before it entered into the contract with the consumer harmed by the company’s or owner’s actions.

The bill makes consumers awarded a judgement against a proprietor eligible for funds from the New Home Construction Guaranty Fund subject to the same conditions and requirements the law sets for consumers with a judgment against a contractor.

For example, among other things, the consumer:

1.

must apply in writing to DCP within two years of the judgment being finalized;

2.

is eligible to receive payment from the fund (up to $50,000 under the bill) for the actual damages and costs he or she was awarded by the court (excluding punitive damages) and minus any amount already recovered;

and sHB5272 / File No.

638 24 sHB5272 File No.

638 3.

must affirm that he or she has made a good faith effort to satisfy the judgment by following statutory post-judgment procedures.

Additionally, the bill makes new home construction contractors and proprietors liable for consumer payouts from the New Home Construction Guaranty Fund that result from a judgment against them.

BACKGROUND Penalties Under CGS § 8-12 By law, a municipality’s zoning enforcement authority may issue written orders to remedy conditions in a building or premises that violatezoningregulations.Theauthoritymayalsoissueceaseanddesist orders for violations involving the grading of land, the removal of soil, or soil erosion or sediment control.

CGS § 8-12 subjects a person to a civil penalty of up to $2,500 if he or she (1) has been served with a written order and fails to comply with it within 10 days, (2) has been served with a cease and desist order and fails to comply immediately, or (3) continues to violate the provision of the regulation specified in the order.

In addition, the court can grant the municipality injunctive relief if a person subject to an order does not comply with it.

In addition to these penalties for violating an order, a violation of the underlying regulations is subject to civil and criminal penalties.

Ordinarily, violations are subject to a court-imposed fine of between $10 and $100 per day.

However, if the violation is willful, the violator is subject to a fine of between $100 and $250 per day, imprisonment of up to 10 days for each day of the violation (up to a maximum of 30 days), or both.

A willful violator may also beresponsible for the municipality’s costs and attorney’s fees.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Substitute Yea 21 Nay 0 (03/22/2024) sHB5272 / File No.

638 25 sHB5272 File No.

638 Appropriations Committee Joint Favorable Yea 53 Nay 0 (04/22/2024) sHB5272 / File No.

638 26