CT SB00444

Repeals and replaces section 12-430(7) of Connecticut's general statutes concerning nonresident contractor bonding requirements, effective July 1, 2010.

Requires nonresident contractors (those without a regular place of business in Connecticut) to post a bond equal to 5% of the contract price with the Department of Revenue Services, or alternatively obtain a certificate of compliance.

Establishes a "listed contractor" system where nonresident contractors registered for 3+ years with no outstanding tax liabilities are exempt from bonding requirements; other nonresident contractors may qualify for listing by posting a bond and meeting tax compliance standards.

Requires prime or general contractors doing business with unlisted subcontractors to withhold 5% of subcontractor payments until the subcontractor obtains a certificate of compliance from the commissioner, with a 120-day review period.

Exempts contracts with a total project price under $250,000 and residential properties with three or fewer dwelling units from the bonding and withholding requirements.