Raised Bill No. 5376, introduced to the Committee on INSURANCE AND REAL ESTATE, aims to amend regulations for home improvement contractors and salespersons, effective October 1, 2024. The bill revises definitions in Section 20-419 of the 2024 supplement to the general statutes, including adding a definition for "Business day" and clarifying the definition of "Contractor" to exclude those with contracts under one thousand dollars in a twelve-month period. It also introduces new prohibitions for contractors in Section 2, such as limiting the deposit amount to no more than half of the total cash price before work begins and banning incentives related to insurance deductibles. Additionally, the bill requires contractors to provide evidence of insurance and certifications for specific work, and it details the information needed for a certificate of registration application, including updates to personal and business details within 30 days of changes.

Furthermore, the bill sets new requirements for home improvement contracts, mandating that they be in writing, signed by both parties, and contain detailed information about the work and the contractor. It also outlines the owner's cancellation rights, payment methods, and the requirement for contractors to disclose insurance coverage and past business associations. The bill requires contractors to remind homeowners of upcoming work and deliver a completed contract copy at the time of execution. It considers home improvement contracts as home solicitation sales, subject to the Truth-in-Lending Act, and caps finance charges. The bill includes insertions and deletions to current law, updating subparagraph references for conditions under which a contractor can recover payment. The bill's overall intent is to enhance the terms of home improvement contracts, regulate contractor behavior, update contractor notification requirements, require additional insurance coverage, expand contractor registration application content, and modify disciplinary action grounds by the Commissioner of Consumer Protection.

Statutes affected:
Raised Bill: 20-429