ConnecticutSB 013572025 Regular SessionSenateWALLET

AN ACT CONCERNING THE DEPARTMENT OF CONSUMER PROTECTION'S RECOMMENDATIONS REGARDING VARIOUS STATUTES CONCERNING CONSUMER PROTECTION.

Summary

To implement the Department of Consumer Protection's recommendations regarding (1) public accountancy and certified public accountants, (2) architects and the practice of architecture, (3) real estate licensees, (4) the skilled trades, (5) major contractors, (6) new home construction contractors and the New Home Construction Guaranty Fund, (7) community association managers, (8) closing-out sales, (9) mobile manufactured homes and mobile manufactured home parks, (10) the Commissioner of Consumer Protection's enforcement powers and the enforcement powers of various boards and commissions, (11) pure food and drugs, (12) the Connecticut Food, Drug and Cosmetic Act, (13) bakeries, food manufacturing establishments and food warehouses, (14) health clubs, (15) donation bins, (16) acceptance of cash as a form of payment, (17) the Connecticut Unfair Trade Practices Act, (18) the Home Solicitation Sales Act, (19) new motor vehicle warranties, (20) automatic renewal and continuous services provisions, and (21) mechanical contractors.

general law

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Bill Overview

Analyzed Economic Effects

41 provisions identified: 17 benefits, 11 costs, 13 mixed.

More protection for new home buyers

The New Home Construction Guaranty Fund payment cap rises from $30,000 to $50,000 per consumer claim. Payments cover qualifying unpaid actual damages and court-taxed costs, or unpaid restitution, backed by a judgment or order. Consumers must apply within two years after the final decision or the appeal deadline. Judgment-based payments do not cover punitive damages.

Closing-out sellers no longer owe deposits

Closing-out sale license applicants pay a $100 license fee but no longer owe the prior inventory-based deposit. That deposit was the greater of $500 or 1% of wholesale inventory cost, capped at $5,000.

Homebuyers gain contractor proprietor claim coverage

Qualifying consumers can seek New Home Construction Guaranty Fund payments for judgments or restitution orders involving contractors or their proprietors. Covered restitution cases include specified commissioner, Attorney General, and criminal proceedings. Losses must stem from new-home construction law violations by someone holding or having held a contractor certificate. Newly covered restitution claims require a contract within the specified two-year certificate-status window. Consumers apply after a final decision or expiration of the appeal period.

More paths to real estate compensation

Consumers can seek Real Estate Guaranty Fund payments for qualifying misconduct by a real estate licensee or the licensee’s unlicensed employee. Claims can rest on binding arbitration or administrative decisions, court judgments, orders, or decrees involving fraud, theft, forgery, or related misconduct. Applications follow a final decision or expiration of the appeal period. Claimants generally must pursue collection and reasonably search for assets, though the department can waive some requirements. Existing fund payment limits still apply.

More refund money after gym closures

Beginning October 1, 2025, the Health Club Guaranty Fund can pay more for claims from a closed gym. The total cap for each closed location rises from $75,000 to $125,000. This is a shared limit for that location, not a guaranteed payment to each customer.

Stronger protections for mobile home residents

Beginning July 1, 2025, mobile home park owners with tenants must maintain septic systems and arrange temporary service during emergencies. Rental agreements cannot allow rent collection while specified owner-duty failures materially harm residents' health, safety, or home habitability. Tenants can bring housing-court actions over the listed landlord-duty failures. A valid notice to quit for unpaid rent served before the court action blocks this route. A valid notice on another ground also blocks it if served before the tenant's agency complaint and still effective.

Contractors and proprietors owe fund repayments

When the New Home Construction Guaranty Fund pays a consumer, the contractor and proprietor owe the resulting debt to the fund. The commissioner can identify assets and ask the Attorney General to pursue reimbursement. The consumer receiving the qualifying payment does not owe this debt.

Food businesses face stronger license enforcement

Bakeries, food manufacturers, and food warehouses face civil penalties and license conditions for specified food-law violations. The commissioner can suspend these licenses and frozen dessert manufacturing licenses while hearings are pending when urgent action is required to protect public health, safety, or welfare. Other frozen dessert license suspensions or revocations require notice and a hearing.

Health clubs face fines and repayment

Beginning October 1, 2025, health clubs face civil penalties up to $1,000 for each health club law violation. The commissioner can deny new or renewed licenses, suspend or revoke them, or set license conditions. Clubs must repay guaranty fund claim payments plus 10% yearly interest before getting a new or renewed license. Repayments go back into the fund.

Real estate wrongdoers owe fund interest

A person whose conduct causes a Real Estate Guaranty Fund payment must repay that payment plus 10% yearly interest. The person cannot receive a new license until repayment is complete. This duty falls on the responsible person, not the consumer receiving compensation.

Trade violations can halt work

Beginning October 1, 2025, state inspectors can issue notices for specified trade credential, hiring-ratio, apprentice-registration, or permit violations. The Department of Consumer Protection can stop work if all listed violations are not corrected. Ignoring a served stop-work order can bring fines up to $500 per violation per day. Administrative review is available.

More ways to leave health clubs

Beginning October 1, 2025, buyers can cancel health club contracts with tracked written notice within three business days of receiving them. Clubs must confirm cancellation and its effective date in writing within 10 business days. Refunds can exclude the fair market value of services or facility use already received. Buyers can end contracts going forward when similar amenities disappear or services become unavailable after permanent closure or substantial operational changes at their main location. Contracts must prominently explain the Health Club Guaranty Fund and how to seek reimbursement when a club closes or moves.

Trade exam access expands with deadlines

Trade-license applicants can take the exam without registered apprenticeship participation through a statutory recommendation for review or accepted equivalent experience and training. The Department of Consumer Protection evaluates equivalent experience and training with the applicable board. For an initial license, applicants must show they passed the final exam within two years before applying. The board can grant a hardship extension; otherwise, an older exam result may require retesting.

Associations get clearer manager cost disclosures

Beginning October 1, 2025, community association managers must clearly disclose certain business ties in writing when signing management contracts. They must disclose ownership or management interests in businesses seeking work from the association or manager. They must also disclose charges for construction oversight or project coordination outside the contract's general management services.

Car buyers see negotiable add-on charges

Beginning October 1, 2025, licensed dealers must disclose add-on charges in vehicle price advertisements. Amounts must appear in bold type of at least eight points beside “Additional Fees, Charges and Costs.” Price quotes must include optional add-on charges, list each separately, and say each charge is negotiable. Dealers cannot prefill optional add-on amounts on orders or invoices before discussing them with prospective buyers.

Clearer renewal terms and consent evidence

Beginning October 1, 2025, covered automatic-renewal and continuous-service disclosures must be clear and easy to notice. Written and electronic disclosures must stand out and be easy to keep; spoken disclosures must be audible and understandable. When reviewing consent disputes, state agencies and courts must consider whether the business produced a consent record obtained under applicable recording laws.

Home care clients get written safeguards

Homemaker and companion agencies must provide a written contract or service plan within seven calendar days after services begin. Agencies must develop it with the recipient or authorized representative and provide a complaint-process guide. To be enforceable, the signed document must include required service, oversight, meeting, and notice details. Rate changes for the same service level or type require at least 60 days’ advance written notice. These rules exclude services under the Social Services Department’s Connecticut home-care program for the elderly.

Stronger repair warranties for purchased goods

Beginning October 1, 2025, sellers’ and lessors’ promises to repair or replace defective goods create express warranties. Covered businesses include manufacturers, wholesalers, distributors, retailers, and businesses leasing or distributing goods for return. Buyers, lessees, and people who inherit their legal rights can bring express-warranty claims without a direct purchase, lease, or contract with that business.

Unlicensed design providers must identify themselves

Unlicensed providers claiming specified architecture-law exemptions must clearly display “NOT A LICENSED ARCHITECT.” The notice must appear on contracts, ads, promotional materials, plans, and specifications. It applies to exemptions numbered (1) through (6) and (8), not every exemption.

Public notices for restrictive listing contracts

Listing providers must rerecord qualifying residential listing agreements and record notice with the town clerk. The rule covers agreements signed by June 30, 2024, that claim to bind future owners or create property liens. It also covers agreements allowing assignment without first notifying the owner and obtaining consent. The law took effect June 24, 2025, but states a recording deadline of July 31, 2024.

Food transport drops vehicle labeling rule

Food transport vehicles no longer need the owner’s, operator’s, or distributor’s name and address printed on both sides. Vehicles transporting food for people must still meet federal sanitary transportation rules. Each food compartment must remain enclosed in a manner approved by the commissioner.

Prequalified contractors get free major registration

Beginning July 1, 2025, the state must issue major-contractor registration to contractors or substantial subcontractors showing state prequalification. They pay no registration fee and need no additional proof of qualification.

Consumer investigators gain stronger enforcement tools

Consumer Protection investigators can inspect premises at reasonable hours for suspected violations of laws the commissioner enforces. They can make audio and visual records and request related records unless another law prohibits access. Beginning October 1, 2025, charity-solicitation investigators can subpoena relevant records and people. They can also administer oaths and hold hearings.

Consumer protection settlements can include money

The commissioner can include a monetary settlement in an accepted voluntary-compliance agreement over an alleged consumer protection violation. This can be added to restitution for harmed people and investigation costs. The law sets no settlement amount and does not require that settlement money go directly to consumers.

Contractor agreements lose automatic-renewal protections

Beginning October 1, 2025, automatic-renewal and continuous-service requirements exclude agreements with state-regulated home improvement contractors. Customers entering these agreements do not receive the protections of those requirements.

Manager penalties lose prior hearing requirement

Beginning October 1, 2025, the law removes the express administrative-hearing prerequisite for community association manager violation penalties. Violators remain subject to a fine up to $1,000, up to one year in prison, or both.

Charities face records and conduct requirements

Beginning October 1, 2025, charities must include required audited or reviewed financial statements with annual registration unless the commissioner grants a statutory waiver. Charities hiring fundraising counsel must keep contracts for at least seven years after expiration and provide them to Consumer Protection on request. Prohibited conduct now includes nonfinancial actions unrelated to a charity’s purpose or actions that jeopardize or interfere with that purpose.

Unlicensed providers cannot advertise architectural services

People and businesses without a Connecticut architect license cannot practice or offer architecture or use the title “architect.” The restriction also covers terms such as “architectural design,” “architectural services,” and “architectural drawings.” It applies even when a provider claims an exemption from the architecture licensing chapter.

Food businesses pay for each reinspection

Beginning October 1, 2025, food factory, food warehouse, and food establishment owners pay $175 for each required compliance reinspection. The fee applies even when the first reinspection finds the business in compliance.

Fundraising counsel must carry larger bonds

Beginning October 1, 2025, fundraising counsel applying for or renewing registration must provide a $50,000 bond, up from $20,000. The bond must stay in effect throughout registration. The bond amount is financial security, not a stated $50,000 cash fee.

New cancellation calendar for home solicitations

Beginning July 1, 2025, Saturdays, Sundays, and Connecticut-designated legal holidays do not count as business days for home solicitation sales. This calendar controls applicable cancellation deadlines and other business-day periods for covered sales.

New cash options and payment exceptions

Cash-acceptance rules exclude locations without employees providing in-person purchase assistance, health care services, and professional services. Covered retailers can instead offer a device that converts cash to a prepaid card. Retailers and device vendors cannot charge card fees, require a minimum deposit above $1, impose expiration dates or transaction limits, or demand personal information. The device must provide a printed deposit receipt on request. During malfunctions, stores must accept cash and post a clear notice until the device works again.

Saturday counts toward debt cancellation deadlines

Beginning July 1, 2025, debt negotiation contracts use a specific calendar for their three-business-day cancellation period. Saturdays count, but Sundays do not. Excluded holidays are New Year’s Day, Washington’s Birthday, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving Day, and Christmas Day.

Architects get education exemptions and penalties

Architects are exempt from continuing education until after their first license renewal; Architect Emeritus registrants are also exempt. The board can grant a written excuse for health, military service, or another individual hardship. Architects receiving that excuse must meet other renewal requirements. Education left incomplete more than 26 weeks after the education period can bring a penalty up to $1,000 or license suspension, revocation, or nonrenewal.

Association manager registration expands with exemptions

Paid work coordinating, supervising, or advising on association operations now falls within manager registration rules, not just overall operations. Exemptions cover professionals working within their licenses, managers' administrative support staff, and directors, officers, or members serving their own associations. The last exemption excludes anyone controlling more than two-thirds, but less than all, of the association's votes. Trainees must register and learn under a manager's direct supervision. Trainees owe no application or registration fee and are exempt from the manager criminal-history check.

Less paperwork for closing-out sales

Closing-out sale applicants must apply at least five days ahead, list sale dates, and attest they owe no overdue state or local taxes. Applicants using promoters must list their names and license numbers. Detailed inventory and sale information, signed promoter agreements, and monthly goods reports are no longer required. Licenses expire 90 days after issuance or on the original sale ending date, whichever comes first. The Consumer Protection Commissioner can grant an extension when the business shows a need.

Specified state laws are repealed

Beginning October 1, 2025, the law repeals Connecticut General Statutes § 19a-32n and §§ 20-341s through 20-341bb. The supplied text does not describe those laws, so their effects on households cannot be determined.

State lawyers gain expert hiring flexibility

Beginning October 1, 2025, the Attorney General's office gains an expert-witness exception to certain state contracting restrictions covering $100 or more. It covers affected public officials, state employees, immediate family members, and associated businesses in litigation or administrative proceedings, including anticipated cases. The office must report specified contract and expert details to the Office of State Ethics. Reporting is due 30 days after actual or required disclosure to the opposing party, or when proceedings end, whichever comes first.

Charities gain fundraising spending flexibility

Beginning October 1, 2025, unreasonable fundraising spending is no longer a violation under this provision for charitable organizations. The ban on unreasonable management spending remains. Charities gain flexibility, while contributors lose this specific limit on fundraising spending.

Charity fundraising rules reach online requests

Beginning October 1, 2025, charity solicitation rules expressly cover spoken, written, electronic, and online requests for money or other value. Contributions include grants, promises, and pledges; genuine membership fees and dues remain excluded unless membership solely rewards a solicited contribution. Paid-solicitor rules cover services connected to solicitation for any compensation, excluding nominal noncash volunteer gifts and charities’ bona fide nontemporary salaried officers and employees. Attorneys hired only for legal services are excluded from fundraising-counsel rules, but attorneys hired to fundraise are not.

Donation bins need permission and labels

Beginning October 1, 2025, donation bins in public places need advance written permission from the owner or authorized agent. Notices must use block letters at least two inches high on the side donors are likely to use. Charity bins must identify the benefiting nonprofit and bin owner, provide contact details, and say the public can contact Consumer Protection.

Sponsors & Cosponsors

Sponsor

General Law Committee
Affiliation unavailable

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 241 • No: 2

Senate vote • 4/25/2025

JUD Vote Tally Sheet-A (Joint Favorable Substitute)

Yes: 0 • No: 0