Bill Text: NJ A3227 | 2018-2019 | Regular Session | Introduced
Bill Title: Requires DCA to establish training and certification program and arbitration standards for new home warranty arbitrators and publish a "New Home Buyer's Bill of Rights."
Spectrum: Partisan Bill (Democrat 3-0)
Status: (Introduced - Dead) 2018-02-08 - Introduced, Referred to Assembly Housing and Community Development Committee [A3227 Detail]
Download: New_Jersey-2018-A3227-Introduced.html
Sponsored by:
Assemblyman R. BRUCE LAND
District 1 (Atlantic, Cape May and Cumberland)
Assemblyman BOB ANDRZEJCZAK
District 1 (Atlantic, Cape May and Cumberland)
SYNOPSIS
Requires DCA to establish training and certification program and arbitration standards for new home warranty arbitrators and publish a "New Home Buyer's Bill of Rights."
CURRENT VERSION OF TEXT
As introduced.
An Act requiring the certification of certain arbitrators, the development of standards for the arbitration of warranty claims and a training program for arbitrators, and the promulgation of a home buyer's bill of rights under the "New Home Warranty and Builders' Registration Act," and supplementing chapter 3B of Title 46 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. a. Any person serving as an arbitrator for a dispute under the "New Home Warranty and Builders' Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.), whether under the plan created by the Commissioner of Community Affairs pursuant to the provisions of section 3 of P.L.1977, c.467 (C.46:3B-3), or any private plan for that same purpose approved by the commissioner, shall: possess proof of satisfactorily passing the course of study for building inspector certified by the department; be licensed as a professional engineer or registered or licensed as an architect in New Jersey or in any other state; or hold a license as a State subcode official; provided, however, that no person shall serve as an arbitrator in any matter involving a major structural defect claim who is not either a licensed professional engineer or a registered or licensed architect.
b. (1) In addition to the requirements of subsection a. of this section, as a condition of serving as an arbitrator for a dispute under the "New Home Warranty and Builders' Registration Act," a person shall be required to complete a training program, created by or approved by the commissioner, of not less than eight hours in length, that is designed to clarify the role, and the duties, of an arbitrator under the "New Home Warranty and Builders' Registration Act," and to develop standards for the arbitration of warranty claims under the "New Home Warranty and Builders' Registration Act."
(2) The training program shall be established not later than the 90th day next following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). The training program shall be provided by the Department of Community Affairs or Rutgers, The State University, with the approval of the commissioner.
(3) A person who has served as an arbitrator under the "New Home Warranty and Builders' Registration Act" prior to the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) shall complete the training program not later than the first day of the seventh month next following the enactment of P.L. , c. (C. ) (pending before the Legislature as this bill). (4) Any person who does not complete the training program required under this subsection shall be prohibited from serving as an arbitrator for disputes under the "New Home Warranty and Builders' Registration Act" until they have completed the training program required by this subsection.
c. The commissioner shall adopt a written policy and procedures governing conflicts of interest on the part of arbitrators for disputes under the "New Home Warranty and Builders' Registration Act." The written policy and procedures adopted pursuant to this subsection shall include, at a minimum, requirements for:
(1) the disclosure by an arbitrator of any perceived or actual conflict of interest on the arbitrator's part with respect to any dispute under the "New Home Warranty and Builders' Registration Act" for which they have been appointed the arbitrator;
(2) the lodging of a complaint by any owner of any perceived or actual conflict of interest on an arbitrator's part with respect to any dispute under the "New Home Warranty and Builders' Registration Act";
(3) the disclosure of any arbitrator's previous employment or affiliation with a builder or an owner who may be party to a dispute under the "New Home Warranty and Builders' Registration Act";
(4) the maintenance by the department of a record of any claim by any party to a dispute under the "New Home Warranty and Builders' Registration Act" of a perceived or actual conflict of interest; and
(5) the procedure for granting a second arbitration of a dispute under the "New Home Warranty and Builders' Registration Act" if a conflict of interest has been verified.
d. The commissioner shall disseminate the written policy developed pursuant to subsection c. of this section to all active arbitrators upon its adoption.
2. a. The Bureau of Homeowner Protection, Division of Codes and Standards in the Department of Community Affairs shall create a "New Home Buyer's Bill of Rights" which shall include an overview of all the rights afforded to homeowners under the "New Home Warranty and Builders' Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.), as well as a guide to warranty coverage and claim filing, a guide to State building codes, a list of approved warranty plans, an explanation of the builder registration process, and a detailed discussion of the dispute process, including the arbitration of disputes.
b. The Bureau of Homeowner Protection, Division of Codes and Standards in the department shall publish the "New Home Buyer's Bill of Rights" on the department's Internet web page.
3. This act shall take effect
immediately.
STATEMENT
This bill establishes qualifications for any person serving as an arbitrator for a dispute under the "New Home Warranty and Builders' Registration Act," whether under the plan created by the Commissioner of Community Affairs pursuant to the provisions of section 3 of P.L.1977, c.467 (C.46:3B-3), or any private plan for that same purpose approved by the commissioner. In addition, the bill provides that an arbitrator shall be required to complete a training program, created by or approved by the commissioner, of not less than eight hours in length, that is designed to clarify the role, and the duties, of an arbitrator under the "New Home Warranty and Builders' Registration Act," and establishes deadlines for its completion. The bill also requires that the commissioner to develop standards for the arbitration of warranty claims under that law.
Finally, the bill requires the Bureau of Homeowner Protection, Division of Codes and Standards in the Department of Community Affairs to create a "New Home Buyer's Bill of Rights" which shall include an overview of all the rights afforded to owners under the "New Home Warranty and Builders' Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.), as well as a guide to warranty coverage and claim filing, a guide to State building codes, a list of approved warranty plans acceptable in the State, an explanation of builder registration, and a detailed discussion of the dispute process, including the arbitration of disputes. The department must publish the "New Home Buyer's Bill of Rights" on the department's Internet web page.
