HB 6963 — AN ACT CONCERNING THE ENFORCEMENT OF REQUIREMENTS IMPOSED BY CERTAIN MUNICIPAL APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY FUND.

6963 sections20-417ato20-417j,inclusive,asamendedbythisact,byaperson holding a certificate under said sections, such consumer 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 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) obtained a decision, judgment, order or decree sHB6963stating /the Fileamount No.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) made agoodfaithefforttosatisfy any suchdecision, judgment, order or decree in accordance with the provisions of chapter which effort may include causing to be issued a writ of execution upon such decision, judgment, order or decree, [but] provided the officer executing the same has made a return showing that no bank accountsor personalproperty ofsuchcontractor liabletobeleviedupon insatisfactionofthedecision,judgment,orderor decree couldbefound, 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.

810A sHB6963true Fileand attested copy of such executing officer's return, when required, shall be attached to such Public Act No.

81025-53 stating10 the amount of the16 decision,Substitute judgment,House orderBill orNo. 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 906 which effort may include causing to be issued a writ of execution upon such decision, judgment, order or decree, [but] provided the officer executing the same has made a return showing that no bank accountsor personalproperty ofsuchcontractor liabletobeleviedupon insatisfactionofthedecision,judgment,orderor decree couldbefound, 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.

A6963 true and attested copy of such executing officer's return, when required, shall be attached to such application.

(e) Upon receipt of such application together with such copy of the decision, court judgment, order or decree, statement and, except as sHB6963otherwise /provided Filein No.subsection (d) of this section, true and attested copy of the executing officer's return, the commissioner or the commissioner's designee shall inspect such documents for their veracity and upon a determination that such documents are complete and authentic and that the consumer has not been paid, the commissioner shall order payment out of the New Home Construction Guaranty Fund of the amount not exceeding [thirty] 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.

810(f) sHB6963[Beginning] File(1) Between October 1, 2000, and September 30, 2025, whenever a consumer is awarded an order of restitution against any new home construction contractor 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 Public Act No.

81025-53 otherwise11 provided in subsection (d) of this16 section,Substitute trueHouse andBill attestedNo. copy of the executing officer's return, the commissioner or the commissioner's designee shall inspect such documents for their veracity and upon a determination that such documents are complete and authentic and that the consumer has not been paid, the commissioner shall order payment out of the New Home Construction Guaranty Fund of the amount not exceeding [thirty] 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.

(f)6963 [Beginning] (1) Between October 1, 2000, and September 30, 2025, whenever a consumer is awarded an order of restitution against any new home construction contractor 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 into the contract with the consumer, in [(1)] (A) a proceeding brought bythecommissioner pursuant to subsection [(h)] (i) of this section or subsection (d) of section 42-110d, [(2)] (B) a proceeding brought by the Attorney General pursuant to subsection (a) of section 42-110m or subsection (d) of section 42-110d, or [(3)] (C) 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.

(2) Beginning on October 1, 2025, whenever a consumer is awarded an order of restitution against any new home construction contractor or proprietor 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 sHB6963under /said Filesections No.within two years of the date such contractor entered into the 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)ofsection42-110mor subsection(d)ofsection 42-110d, or (C) a criminal proceeding pursuant to section 20-417e, such consumer may, uponthefinaldetermination of,or expirationoftime for taking, an appeal in connection with any such order ofrestitution, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount not exceeding fifty thousand dollars unpaid upon the order of restitution.

810 sHB6963 File No.

810 under said sections within two years of the date such contractor entered into the 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)ofsection42-110mor subsection(d)ofsection 42-110d, or (C) a criminal proceeding pursuant to section 20-417e, such consumer may, uponthefinaldetermination of,or expirationoftime for taking, an appeal in connection with any such order ofrestitution, apply to the commissioner for an order directing payment out of the New Home Construction Guaranty Fund of the amount not exceeding fifty thousand dollars unpaid upon the order of restitution.

(g)Public WheneverAct theNo. commissioner orders payment to a consumer from the New Home Construction Guaranty Fund based upon a decision, judgment, order or decree of restitution, the contractor and proprietor shall be liable for the resulting debt to the New Home Construction Guaranty Fund.

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6963 (g) Whenever the commissioner orders payment to a consumer from the New Home Construction Guaranty Fund based upon a decision, judgment, order or decree of restitution, the contractor and proprietor shall be liable for the resulting debt to the New Home Construction Guaranty Fund.

If the commissioner does not receive awrittenrequest for ahearing by certifiedmailfromthenew sHB6963home /construction Filecontractor No.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 proprietor, exclusive of punitive damages, or for the amount not exceeding [thirty] fifty thousand dollars unpaid upon the order of restitution.

810[(h)] sHB6963(i) FileThe commissioner or the commissioner's designee may Public Act No.

81025-53 home13 construction contractor on or before the fifteenth day from the contractor's receipt of such16 notice,Substitute theHouse commissionerBill shallNo. 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 proprietor, exclusive of punitive damages, or for the amount not exceeding [thirty] fifty thousand dollars unpaid upon the order of restitution.

[(h)]6963 (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, 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, inclusive, by the contractor or proprietor.

[(i)] (j) No application for an order directing payment out of the New Home Construction Guaranty Fund shall be made later than two years sHB6963from /the Filefinal No.determination of, or expiration of time for, an appeal in connection with any judgment, order or decree of restitution, and no such application shall be for an amount in excess of [thirty] fifty thousand dollars.

810[(j)] sHB6963(k) FileIn order to preserve the integrity of the New Home Construction Guaranty Fund, the commissioner, in the commissioner's sole discretion, may order payment out of the fund of an amount less Public Act No.

81025-53 from14 the final determination of, or expiration of time16 for,Substitute anHouse appealBill inNo. connection with any judgment, order or decree of restitution, and no such application shall be for an amount in excess of [thirty] fifty thousand dollars.

[(j)]6963 (k) In order to preserve the integrity of the New Home Construction Guaranty Fund, the commissioner, in the commissioner's sole discretion, may order payment out of the fund of an amount less than the actual loss or damages incurred by the consumer or less than the order of restitution awarded by the commissioner or the Superior Court.

If the commissioner discovers any such assets, the commissioner may request that the Attorney General take any action necessary for the sHB6963reimbursement /of Filethe No.fund.

810[(n)] sHB6963(o) FileIf the commissioner orders the payment of an amount as a result of a guaranty fund claim against a new home construction contractor, the commissioner may, after notice and hearing in accordance with the provisions of chapter 54, revoke the certificate of Public Act No.

81025-53 reimbursement15 of the16 fund.Substitute House Bill No.

[(n)]6963 (o) If the commissioner orders the payment of an amount as a result of a guaranty fund claim against a new home construction contractor, the commissioner may, after notice and hearing in accordance with the provisions of chapter 54, revoke the certificate of 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.

ThisGovernor's actAction: shall take effect as follows and shall amend the following sections:

SectionApproved 1June October10, 1, 2025 8-3(m)Public Sec.Act No.

225-53 October16 1,of 202516 8-12a(a) Sec.

3 October 1, 2025 8-26c(e) Sec.

4 October 1, 2025 22a-44 Sec.

5 October 1, 2025 20-417a Sec.

6 October 1, 2025 20-417i sHB6963 / File No.

810 sHB6963 File No.

810 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the 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 26 $ FY 27 $ 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 Municipal Impact:

Municipalities Effect FY 26 $ FY 27 $ All Municipalities Potential See Below See Below Revenue Gain Explanation Sections 1-4 expand the authority of municipal Zoning Enforcement Officers (ZEO) to initiate enforcement action against businesses that violate various building requirements, resulting in a potential revenue gain to municipalities to the extent that fines are imposed by the ZEO .

Sections 5-6 makes various changes to the New Home Construction Guaranty Fund and the Consumer Protection Enforcement account 1The fines imposed by the ZEO must not exceed $150 per day that the business is in violation of the statutes related to the bill.

sHB6963 / File No.

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810 resulting in the following impacts.

1.

The cap on the New Home Construction Guaranty Fund (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.

3 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 Amendment “A” removed the definition of “incomplete work” from sections 1, 3, and 4, which does not result in a fiscal impact.

The Out Years The annualized ongoing fiscal impact identified above would 2The 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.

3In FY 24 there were four restitution claims paid from the fund totaling $105,000 and $300,000 was transferred to the Consumer Protection Enforcement Account.

4Current law only allows for payments from the fund for judgments against construction companies.

sHB6963 / File No.

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810 continue into the future subject to the number of civil penalties imposed on businesses and the number of claims requested from the NHCGF.

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810 OLR Bill Analysis sHB 6963 (as amended by House "A")* AN ACT CONCERNING THE ENFORCEMENT OF REQUIREMENTS IMPOSED BY CERTAIN MUNICIPAL APPROVALS AND THE NEW HOME CONSTRUCTION GUARANTY FUND.

SUMMARY This bill allows zoning enforcement officers (ZEOs) to take enforcement action against businesses that either (1) suspend work required by an unexpired site plan, subdivision (with less than 400 units) plan, or inland wetlands approval or (2) make improvements that do not conform to the plan’s or approval’s specifications.

Under the bill, the ZEO may generally take certain enforcement actions if he or she determines the business has no intent to resume the work within a reasonable time period and the incomplete or nonconforming work creates a public health or safety hazard.

These enforcement actions include (1) imposing fines (up to $150 per day) that the bill authorizes municipalities to adopt by ordinance and (2) those existing law sets for zoning violations under CGS § 8-12, including civil penalties and imprisonment (see BACKGROUND).

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

Under existing law, a consumer may recoup money from the fund for uncollectable judgments against a new home construction contractor for losses or damages they caused.

The bill additionally allows consumers to do so for these uncollectable judgments against a proprietor (an individual who has an ownership interest in the new home construction company).

For the home guaranty fund, the bill also (1) increases, from $30,000 to$50,000perclaim,themaximumamountconsumersmayrecoupfrom sHB6963 / File No.

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810 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) the funds exceeding this cap that must be annually transferred into the Consumer Protection Enforcement Account.

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

Lastly, the bill makes technical and conforming changes.

*House Amendment “A” primarily expands what constitutes a violation under the bill to include improvements that do not conform with site plans, subdivision plans, or inlands wetlands approvals.

It also makes (1) any required but incomplete (or nonconforming) work a violation, rather than only allowing enforcement in cases of incomplete physicalimprovements,and(2)additionalminorandtechnicalchanges.

EFFECTIVE DATE:

October 1, 2025 §§ 1-4 — INCOMPLETE OR NONCONFORMING WORK REQUIRED BY CERTAIN LAND USE APPROVALS Enforcement via Statutory Penalties in CGS § 8-12 Under certain circumstances, the bill makes it a violation of the law for a business to leave improvements on a project unfinished if the work is required by an unexpired site plan, subdivision (with less than 400 units)plan,orinlandwetlandsapproval.Itsimilarlymakesitaviolation for a business to construct an improvement that does not conform to these plans’ or approvals’ specifications.

Specifically, the bill makes the suspended or nonconforming work a violation if the municipal ZEO or the inland wetlands agency’s agent, as applicable, determine that the:

1.

business has suspended its efforts to complete work needed to meet the plan’s or approval’s requirements, 2.

business has no intent to resume the required work within a reasonable time, and 3.

incomplete or nonconforming work creates a public health or safety hazard.

sHB6963 / File No.

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810 If the ZEO or agent determines a violation exists, the bill authorizes him or her to take enforcement action against the business.

He or she may pursue any enforcement action available under the law on enforcing zoning regulations (CGS § 8-12), including issuing written orders to remedy conditions that violate zoning regulations and seeking civil and criminal penalties in Superior Court (see BACKGROUND).

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.

Enforcement via Municipal Citations Authorized by CGS § 8-12a Under existing law, any municipality may establish, by ordinance, penalties for violations of its zoning regulations.

The bill additionally allows municipalities to establish penalties for businesses that engage in the violation described above (by suspending work or completing nonconforming work and creating a public health or safety hazard).

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.

§§ 5 & 6 — NEW HOME CONSTRUCTION GUARANTY FUND Under current law, a consumer who is awarded a judgment (e.g., a binding arbitration decision or a court judgment, order, or decree) against a registered new home construction contractor but is unable to obtain payment from the contractor (satisfy the judgement), may apply to the Department of Consumer Protection (DCP) to instead recoup 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, beginning October 1, 2025, consumers may also sHB6963 / File No.

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810 recoup money from the fund if the judgment was awarded against certain individuals with an ownership interest in a new home construction company who have been found by a court to have violated certain laws (“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 increases, from $30,000 to $50,000, the maximum award payable from the fund.

It makes consumers awarded a judgement against a proprietor eligiblefor fundsfromtheNewHomeConstruction Guaranty Fund subject to the same conditionsand 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.

may receive payment from the fund for the actual damages and costs he or she was awarded by the court (excluding punitive damages), minus any amount already recovered;

and 3.

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

Additionally, the bill makes conforming changes to make proprietors liable for consumer payouts from the New Home Construction Guaranty Fund that result from a judgment against them.

BACKGROUND sHB6963 / File No.

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810 Penalties Under CGS § 8-12 By law, a municipality’s zoning enforcement authority may issue written orders to remedy conditions on a property that violate zoning regulations.

The authority may also issue cease-and-desist orders for violations involving the land grading, soil removal, 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 specific regulation identified 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.

Related Bill sSB 1357 (File 569), §§ 10 & 11, favorably reported by the General Law committee, also (1) expands when a person may recover from the fund to include circumstances involving a proprietor and (2) increases the maximum guaranty fund award to $50,000.

COMMITTEE ACTION Planning and Development Committee Joint Favorable Substitute Yea 19 Nay 0 (03/21/2025) sHB6963 / File No.

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