OLR Bill Analysis

sSB 172 (File 143, as amended by Senate "A")*

AN ACT CONCERNING HOMEOWNERS, HOME IMPROVEMENT CONTRACTORS AND NEW HOME CONSTRUCTION CONTRACTORS.

SUMMARY:

This bill revises the disclosures that the law requires new home contractors to make to prospective customers. Among other things, current law requires contractors to advise customers to ask for a list of the consumers of the last 12 new homes built to completion by the contractor during the previous 24 months or, if the contractor has not completed 12 new homes during this period, a list of all consumers for whom he has built a new home to completion during the previous 24 months. The bill instead simply requires the contractor to advise customers to request a list of the consumers of the new homes built to completion by the contractor during the previous 24 months.

In addition, the bill makes numerous technical changes to the new home construction contractor law.

*Senate Amendment “A” eliminates provisions in the bill that (1) created an exception to the requirement that home improvement contracts contain start and completion dates to be enforceable against a homeowner in court and (2) required home improvement contractors to include their registration numbers in their contracts with consumers.

EFFECTIVE DATE: Upon passage

BACKGROUND

Home Improvement Contracts

For a home improvement contract to be valid and enforceable against a homeowner, a court must determine that it would be inequitable to deny recovery and the contract must (1) be written, (2) be signed by both the contractor and homeowner, (3) include a notice of a consumer's three-day right to rescind the contract after signing it, (4) include a start and completion date, and (5) be between a registered contractor or salesman and a homeowner. The law also requires all change orders to be written and signed by both parties (CGS § 20-429).

COMMITTEE ACTION

General Law Committee

Joint Favorable Substitute