General Assembly Raised Bill No. 5224 proposes significant amendments to the statutes governing the Real Estate Guaranty Fund, primarily transferring responsibilities from the "commission" to the "Department of Consumer Protection." The bill establishes a maximum fund balance of $500,000, with provisions for replenishment through funds received under section 20-324b. It sets a compensation limit of $25,000 for individuals aggrieved by real estate licensees and requires that applications for compensation be filed within two years of a binding arbitration decision or court judgment. Additionally, the bill introduces interest accrual on payments from the fund, clarifies subrogation rights for the department, and outlines penalties for false statements related to the fund.

Further, the bill amends the process for homeowners seeking compensation from the guaranty fund, mandating a sworn statement confirming a good faith effort to satisfy court judgments before applying for payment. It specifies that these requirements do not apply to small claims court judgments and establishes a two-year limit for application submissions. The commissioner is tasked with notifying contractors of homeowner applications and their right to contest disbursements, with hearings to be conducted within a specified timeframe if requested. The bill also caps payments at $25,000 per claim and allows for payments that may be less than actual damages, ensuring the fund's integrity is maintained. Notably, it deletes references to the Connecticut Real Estate Commission's procedures and replaces "commissioner" with "Department of Consumer Protection" in relevant contexts.

Statutes affected:
Raised Bill: 20-324a, 20-324c, 20-324d, 20-324f, 20-324h, 20-324g