Bill Text: NJ S764 | 2024-2025 | Regular Session | Introduced
Bill Title: Updates regulation home improvement and home elevation contractors and contractors' businesses.
Spectrum: Bipartisan Bill
Status: (Passed) 2024-01-09 - Withdrawn Because Approved P.L.2023, c.237. [S764 Detail]
Download: New_Jersey-2024-S764-Introduced.html
STATE OF NEW JERSEY
221st LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2024 SESSION
Sponsored by:
Senator GORDON M. JOHNSON
District 37 (Bergen)
Senator ROBERT W. SINGER
District 30 (Monmouth and Ocean)
SYNOPSIS
Updates regulation of home improvement and home elevation contractors and contractors' businesses.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act concerning the regulation of home improvement and home elevation contractors, revising various parts of the statutory law, and supplementing Title 45 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) Sections 1 through 24 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall be known and may be cited as the "Home Improvement and Home Elevation Contractor Licensing Act."
2. (New section) As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
"Board" means the New Jersey State Board of Home Improvement and Home Elevation Contractors.
"Contractor" means an individual providing home improvement or home elevation services, or both types of services, for a corporation, partnership, association, sole proprietorship, and any other form of business organization or entity that enters into contracts for home improvement, home elevation, or both types of services with consumers. This shall not include: (1) an individual who owns or manages a home improvement or home elevation business but does not perform home improvement or home elevation services; or (2) employees of or individuals contracted by a sole proprietorship, corporation, partnership, association, or other form of a business entity hired or contracted to sell home improvement or home elevation services, or both types of services. An individual who makes a home improvement or home elevation without compensation shall not be deemed to be a contractor with respect to that service.
"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.
"Home elevation" means any home improvement that involves raising an entire residential structure to a higher level above the ground.
"Home elevation contractor" means a contractor who engages in the practice of home elevation and is authorized to perform home improvement services.
"Home improvement" means the remodeling, altering, renovating, repairing, restoring, modernizing, moving, demolishing, installing in, or otherwise improving or modifying of the whole or any part of any residential property. Home improvement shall also include insulation, installation and the conversion of existing commercial structures into residential property. Home improvement shall not include the construction of a new residential property.
"Home improvement contractor" means a contractor who engages solely in the practice of home improvement.
"Limited specialty services license" means a license issued by the board that authorizes an individual only to perform services in a specialty of home improvement, the scope of which shall be determined by the board.
"Limited specialty services licensee" means an individual licensed by the board to provide limited specialty home improvement services.
"Principal home improvement contractor" or "principal home elevation contractor" means a licensed home improvement or home elevation contractor who oversees the performance of services for contracts (1) valued at a minimum of $120,000 and (2) that require the submittal of plans with more than one subcode. A principal home improvement or principal home elevation contractor may also provide services as a home improvement contractor or home elevation contractor if a contract is valued at less than $120,000 or does not require submittal of plans with more than one subcode.
"Residential property" means any single or multi-unit structure used in whole or in part as a place of residence, and all structures appurtenant thereto, and any portion of the lot or site on which the structure is situated which is devoted to the residential use of the structure.
3. (New section) There is created within the Division of Consumer Affairs in the Department of Law and Public Safety, the New Jersey State Board of Home Improvement and Home Elevation Contractors. The board shall consist of nine members who shall be residents of the State. Except for the members first appointed: five members shall be licensed home improvement contractors, of whom two shall represent trade associations focused on the home improvement industry, one member shall be a licensed construction code official, two members shall be members of the public, and one member shall be appointed pursuant to subsection c. of section 2 of P.L.1971, c.60 (C.45:1-2.2). Of the two members of the public, one shall be appointed by the Governor upon recommendation of the Senate President and the other shall be appointed by the Governor upon recommendation of the Assembly Speaker. Of the members first appointed, the five members who are registered home improvement contractors shall have been so registered for at least ten years immediately preceding appointment to the board. The members first appointed shall be appointed no later than the first day of the sixth month following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).
Each member shall be appointed for a term of five years, except that of the members first appointed, two home improvement contractor members shall serve for a term of three years, two home improvement contractor members shall serve for a term of two years, and one home improvement contractor member shall serve for a term of one year. Each member shall hold office until a successor has been qualified and appointed. Any vacancy in the membership of the board shall be filled for the unexpired term in the manner provided for in the original appointment. No member of the board shall serve more than two successive terms in addition to any unexpired term to which the member has been appointed.
4. (New section) a. The board shall be entitled to retain all funds collected as a result of fees paid for initial licensure and for licensure renewal, reactivation, and reinstatement to administer and enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. Members of the board may be reimbursed for expenses within the limits of funds appropriated or otherwise made available for this purpose and provided with office and meeting facilities and personnel required for the proper conduct of the business of the board.
5. (New section) a. The board shall organize within 60 days after the appointment of its members and shall annually elect from its members a chairperson and a vice-chairperson, and may appoint a secretary, who need not be a member of the board. The board shall meet at least once a month and may hold additional meetings as necessary to discharge its duties. A majority of board membership shall constitute a quorum.
b. The board shall promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill). The provisions of sections 9 through 13 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall remain inoperative until the first day of the sixth month next following the promulgation by the board of the rules and regulations.
6. (New section) The board shall have the following powers and duties:
a. administer and enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill);
b. develop education requirements and develop or designate an examination or examinations to evaluate the knowledge, ability, and fitness of applicants for licensure to perform as home improvement or home elevation contractors, which shall include examination of State law on home improvement for individuals seeking licensure as home improvement contractors, or on home improvement and home elevation for individuals seeking licensure as home elevation contractors. The requirements shall include:
(1) establishing education requirements for home improvement contractors, including principal home improvement contractors, and home elevation contractors, including principal home elevation contractors; and
(2) developing the curriculum for or identifying courses in which an applicant may enroll in to prepare for licensing examinations developed or designated pursuant to paragraph (1) of this subsection;
c. review the qualifications of applicants for licensure;
d. issue and renew, on a biennial basis, licenses for home improvement and home elevation contractors;
e. refuse to admit an applicant for an examination or suspend, revoke, or refuse to renew a license pursuant to the provisions of P.L.1978, c.73 (C.45:1-14 et seq.) and, in the case of a suspension, revocation, or refusal to renew, notify the contractor business registered pursuant to P.L.2004, c.16 (C.56:8-136 et seq.) that employs the licensed individual of the decision and notify the division that the individual is not authorized to perform home improvements, home elevations, or services pursuant to a limited specialty services license on behalf of the registered contractor business that employs the individual until such time as the license is restored;
f. adopt a code of ethics and standards of conduct for licensed home improvement and home elevation contractors;
g. establish and change, if necessary, applicable fees including for initial licensure and licensure renewal, reactivation and reinstatement;
h. establish standards for continuing education requirements;
i. promulgate rules and regulations pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.);
j. issue, from time to time and as determined by the board, limited specialty services licenses in home improvement contracting specialties, including, but not limited to, drywall installation; painting and plastering; roofing; and carpeting and flooring;
(1) The board shall establish requirements for licensure in a limited specialty service, which may include the passage of an examination specific to the specialty.
(2) An individual may hold more than one limited specialty services license.
(3) An individual who is not licensed as a home improvement or home elevation contractor but has a limited specialty services license issued by the board may provide any services within the scope of practice, to be determined by the board, of the specialty services license; and
k. establish standards for:
(1) the scope of practice for principal home improvement and principal home elevation contractors; home improvement and home elevation contractors; and limited specialty services licensees; and
(2) the supervision of employees of home improvement, home elevation, and specialty service businesses.
7. (New section) To be eligible for licensure as a home improvement contractor or as a home elevation contractor, an applicant shall fulfill the following requirements:
a. be at least 18 years of age;
b. demonstrate completion of:
(1) through submission of an attestation as prescribed by the board, an apprenticeship program registered with or approved by the United States Department of Labor, or similar program as provided by a trade school or other facility accredited by a regional or national accrediting agency recognized by the United States Department of Education, that allows for the applicant to prepare for a career in home improvement or home elevation services; or
(2) at least two years of experience performing home improvement services subject to the direct oversight of a home improvement contractor or a home elevation contractor or performing home improvement and home elevation services subject to the direct oversight of a home elevation contractor. "Direct oversight" shall not require the supervising individual to remain on-site. An application for licensure shall require the signature of the applicant, the name and address of the home improvement or home elevation business for whom the applicant worked, and an attestation, in a form as determined by the board, that the applicant, when providing contracting services, adhered to industry best practices and followed standard procedures in a safe and healthy manner. The two years of experience required in this section may be obtained by an applicant who can demonstrate to the board, in a manner and form as determined by the board, the performance of services in home improvement or home elevation:
(a) under a home improvement or home elevation contractor in another state or jurisdiction of the United States with, as determined by the board, substantially equivalent requirements to the requirements in this State; or
(b) through work obtained by the applicant as a home improvement or home elevation contractor in another state or jurisdiction of the United States with, as determined by the board, substantially equivalent requirements to the requirements in this State;
c. completion of educational requirements established pursuant to paragraph (1) of subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill) and passage of an examination pursuant to paragraph (2) of subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill);
d. submission of a disclosure statement, as prescribed by the board, stating whether the applicant has been convicted of any crime, which for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) shall mean a violation of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill); and
e. payment of all applicable fees.
8. (New section) a. In addition to any other procedure, condition or information required by P.L. , c. (C. ) (pending before the Legislature as this bill), every applicant for licensure shall file a disclosure statement with the board, pursuant to subsection d. of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), stating whether the applicant has been convicted of any crime, which for the purposes of P.L. , c. (C. ) (pending before the Legislature as this bill) shall mean a violation of certain provisions of the "New Jersey Code of Criminal Justice," Title 2C of the New Jersey Statutes, or the equivalent under the laws of any other jurisdiction; provided, however, that an applicant shall not be disqualified from licensure or have a license suspended or revoked on the basis of any conviction disclosed, except as provided in subsection b. of this section or in sections 1 or 2 of P.L.2021, c.81 (C.45:1-21 and 45:1-21.5).
b. The board may refuse to issue or may suspend or revoke any license issued thereby or impose any of the additional, alternative remedies set forth in section 9 of P.L.1978, c.73 (C.45:1-22) or section 12 of P.L.1978, c.73 (C.45:1-25) upon proof that an applicant or a licensee:
(1) Has obtained a license through fraud, deception or misrepresentation;
(2) Has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;
(3) Has engaged in gross negligence, gross malpractice or gross incompetence;
(4) Has engaged in repeated acts of negligence, malpractice or incompetence;
(5) Has engaged in professional or occupational misconduct as may be determined by the board;
(6) Has been convicted of any crime or offense that has a direct or substantial relationship to the activity regulated by P.L. , c. (C. ) (pending before the Legislature as this bill) or is of a nature such that licensure would be inconsistent with the public's health, safety, or welfare, provided that the board shall make this determination in a manner consistent with section 2 of P.L.2021, c.81 (C.45:1-21.5). For the purpose of this subsection, a plea of guilty, non vult, nolo contendere or any other such disposition of alleged criminal activity shall be deemed a conviction;
(7) Has had the authority to engage in the activity regulated by the board revoked or suspended by any other state, agency or authority for reasons consistent with this section;
(8) Has violated or failed to comply with the provisions of any State act, regulation or order administered or issued by the board or, other than traffic violations, by any other State agency; or
(9) Has engaged in any other conduct enumerated in section 8 of P.L.1978, c.73 (C.45:1-21).
c. At least 30 calendar days prior to denying an application for licensure or suspending or revoking a license pursuant to this section, the board shall notify the applicant or licensee of its intent to deny the application or suspend or revoke the license and afford the applicant an opportunity for a hearing in a manner provided for contested cases pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.). If, however, the board intends to deny the application or suspend or revoke the license under paragraph (6) of subsection b. of this section, the provisions of P.L.2021, c.81 (C.45:1-21.5) shall apply.
d. An applicant shall have the continuing duty to provide any assistance or information requested by the board, and to cooperate in any inquiry, investigation, or hearing conducted by the board.
e. If any of the information to be included in the disclosure statement, required pursuant to subsection f. of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), changes or if additional information should be added after the filing of the statement, the applicant shall provide that information to the board, in writing, within 20 calendar days of the change or addition.
9. (New section) Except for individuals exempted pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill), no individual shall perform home improvement services or home elevation services unless licensed by the board.
10. (New section) a. Except for individuals exempted pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill), any individual who or business that advertises in print or electronic media or who puts out any sign or card or other device which would indicate to the public that the individual is a contractor in New Jersey or who causes the individual's name or business name to be included in a classified advertisement or directory in New Jersey under a classification for home improvement or home elevation, as defined in section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), is subject to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill). This section shall not be construed to apply to simple residential alphabetical listings in standard telephone directories, including directories or similar lists posted online.
b. No individual holding a limited specialty services license shall advertise in print or electronic media or put out any sign or card or other device which would indicate to the public that the individual is licensed as a home improvement or home elevation contractor or is authorized to perform services outside of the scope of the limited specialty services license.
11. (New section) The provisions of sections 7, 8, 9, 12, 13, 17, and 20 through 23 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to:
a. Any individual required to register pursuant to "The New Home Warranty and Builders' Registration Act," P.L.1977, c.467 (C.46:3B-1 et seq.), but only in conjunction with the building of a new home as defined in section 2 of P.L.1977, c.467 (C.46:3B-2);
b. Any individual regulated by the State as an architect, professional engineer, landscape architect, land surveyor, electrical contractor, master plumber, or any other individual in any other related profession requiring registration, certification, or licensure by the State, who is acting within the scope of practice of the individual's profession;
c. Any individual who is employed by a common interest community, including, but not limited to, a community association or cooperative corporation, or by the owner or manager of any other residential property, while the individual is acting within the scope of that employment;
d. Any public utility as defined under R.S.48:2-13;
e. Any individual licensed under the provisions of section 16 of P.L.1960, c.41 (C.17:16C-77) but only in conjunction with selling a home repair contract as defined in section 1 of P.L.1960, c.41 (C.17:16C-62) and as also applicable to P.L.1968, c.224 (C.17:16C-95 et seq.);
f. Any home improvement or home elevation retailer with sales of more than $50,000,000, or employee of that retailer while acting on behalf of that retailer; and
g. Any individual who is seeking a license in home improvement pursuant to paragraph (2) of subsection b. in section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill).
12. (New section) a. The provisions of subsections a., b., and c. of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to an individual who, as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), has been registered as a home improvement or home elevation contractor in New Jersey for at least five years. The board shall issue a license to an individual who meets the requirements of this subsection which shall take effect at the time of expiration of the contractor registration previously issued upon submission by an individual of an application in such form as may be prescribed by the board and payment of a fee established by the board.
b. An individual who qualifies for licensure as a home improvement or home elevation contractor under subsection a. of this section and who can demonstrate experience overseeing the performance of services for contracts (1) valued at a minimum of $120,000 and (2) that require the submittal of plans with more than one subcode shall qualify as a principal home improvement or home elevation contractor.
c. The provisions of subsections a., b., and c. of section 7 and the provisions of sections 20 through 23 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to an individual who provides services included in the definition of "home improvement" but earns a maximum of $1,500 per contract and $25,000 on an annual basis.
d. An individual covered under subsection c. of this section shall continue to be subject to the requirement to maintain annual registration pursuant to P.L.2004, c.16 (C.56:8-136 et seq.).
e. An individual registered pursuant to subsection d. of this section shall be liable for penalties pursuant to subsection b. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) for making false statements, including falsification of records demonstrating earnings in connection with the process to register.
f. Upon annual registration renewal, if an individual registered pursuant to subsection d. of this section has earnings that have increased above $1,500 per contract for services provided during the previous calendar year, or has earned more than $25,000 performing home improvements during the previous calendar year, the individual shall apply for a biennial license, the fee and additional requirements of which shall be determined by the board.
13. (New section) The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall apply to any individual who engages or seeks to engage in any of the activities in this State which are regulated by the board pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), including individuals whose residence or principal place of business is located outside of this State.
14. (New section) a. P.L. , c. (C. ) (pending before the Legislature as this bill) shall supersede any municipal ordinance or regulation that provides for the licensing of home improvement or home elevation contractors or for the protection of homeowners by bonds or warranties required to be provided by contractor registration businesses pursuant to section 7 of P.L.2004, c.16 (C.56:8-142), exclusive of those required by water, sewer, utility, or land use ordinances or regulations.
b. A municipality shall not issue a construction permit for any home improvement or home elevation if any part of the home improvement or home elevation is to be performed by any contractor who is neither licensed pursuant to, nor exempt from the requirements of, the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
c. A municipality may issue a construction permit for a home improvement or home elevation only to:
(1) a contractor who is performing the home improvement or home elevation and who is licensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) or who will obtain a license upon expiration of a registration pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) an individual who is performing the home improvement or home elevation and is not required to be licensed pursuant to section 11 of P.L. , c. (C. ) (pending before the Legislature as this bill); or
(3) a single-family homeowner who performs plumbing, electrical, or heating, ventilation, and air conditioning work in the homeowner's own dwelling.
d. A contractor shall be liable for any fines or penalties resulting from a failure to obtain any permit necessary to complete the home improvement.
15. (New section) a. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not deny to any municipality the power, pursuant to the "State Uniform Construction Code Act," P.L.1975, c.217 (C.52:27D-119 et seq.), to inspect a contractor's work or equipment, the work of a contractor who performs improvements to commercial property, or the power to regulate the standards and manners in which the work of the contractor shall be done.
b. A municipality shall have the authority to bring a proceeding in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in the municipal court or in Superior Court to recover fines and penalties for violations of P.L. , c. (C. ) (pending before the Legislature as this bill), committed by a contractor in connection with a home improvement or home elevation located within the municipality. Fines and penalties recovered from a contractor in a proceeding may be retained by the municipality.
16. (New section) a. The division shall establish and undertake a public information campaign to educate and inform contractors, applicable businesses, and the consumers of this State of the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The board shall provide a toll-free telephone number for consumers making inquiries regarding any individual engaging in or offering to engage in home improvement, home elevation, or limited specialty services or shall promote, as part of the public information campaign, any toll-free telephone number already established for inquiries.
17. (New section) a. Any individual seeking to convert a home improvement contractor license into a home elevation license may do so by submitting documentation, as prescribed by the board, demonstrating:
(1) at least two years of experience working on home elevations under a home elevation contractor who is licensed pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) or qualifies for licensure pursuant to section 12 of P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) that the individual has not had a home improvement contractor license or registration or a home elevation contractor license or registration revoked or suspended; and
(3) that the contractor business registered pursuant to P.L.2004, c.16 (C.56:8-136 et seq.) that employs the contractor maintains cargo or other insurance covering home elevation services as required pursuant to section 7 of P.L.2004, c.16 (C.56:8-142).
b. The board may charge applicable fees to convert a license from home improvement to home elevation.
c. The board shall establish the standards and requirements necessary for a limited specialty services licensee to obtain a home improvement or home elevation license.
18. Section 1 of P.L.1971, c.60 (C.45:1-2.1) is amended to read as follows:
1. The provisions of this act shall apply to the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the Board of Examiners of Electrical Contractors, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Marriage and Family Therapy Examiners, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the State Board of Examiners of Master Plumbers, the New Jersey Real Estate Commission, the State Board of Court Reporting, the State Board of Veterinary Medical Examiners, the Radiologic Technology Board of Examiners, the Acupuncture Examining Board, the State Board of Chiropractic Examiners, the State Board of Respiratory Care, the State Real Estate Appraiser Board, the State Board of Social Work Examiners, the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors, the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board, the State Board of Physical Therapy Examiners, the Orthotics and Prosthetics Board of Examiners, the New Jersey Cemetery Board, the State Board of Polysomnography, the New Jersey Board of Massage and Bodywork Therapy, the Genetic Counseling Advisory Committee, the State Board of Dietetics and Nutrition, the New Jersey State Board of Home Improvement and Home Elevation Contractors, and any other entity hereafter created under Title 45 to license or otherwise regulate a profession or occupation.
(cf: P.L.2019, c.331, s.16)
19. Section 2 of P.L.1971, c.60 (C.45:1-2.2) is amended to read as follows:
2. a. All members of the several professional boards and commissions shall be appointed by the Governor in the manner prescribed by law; except in appointing members other than those appointed pursuant to subsection b. or subsection c., the Governor shall give due consideration to, but shall not be bound by, recommendations submitted by the appropriate professional organizations of this State.
b. In addition to the membership otherwise prescribed by law, the Governor shall appoint in the same manner as presently prescribed by law for the appointment of members, two additional members to represent the interests of the public, to be known as public members, to each of the following boards and commissions: the New Jersey State Board of Accountancy, the New Jersey State Board of Architects, the New Jersey State Board of Cosmetology and Hairstyling, the New Jersey State Board of Dentistry, the State Board of Mortuary Science of New Jersey, the State Board of Professional Engineers and Land Surveyors, the State Board of Medical Examiners, the New Jersey Board of Nursing, the New Jersey State Board of Optometrists, the State Board of Examiners of Ophthalmic Dispensers and Ophthalmic Technicians, the Board of Pharmacy, the State Board of Professional Planners, the State Board of Psychological Examiners, the New Jersey Real Estate Commission, the State Board of Court Reporting, the State Board of Social Work Examiners, the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board, and the State Board of Veterinary Medical Examiners, and one additional public member to each of the following boards: the Board of Examiners of Electrical Contractors, the State Board of Marriage and Family Therapy Examiners, the State Board of Examiners of Master Plumbers, [and] the State Real Estate Appraiser Board, and the New Jersey State Board of Home Improvement and Home Elevation Contractors. Each public member shall be appointed for the term prescribed for the other members of the board or commission and until the appointment of his successor. Vacancies shall be filled for the unexpired term only. The Governor may remove any such public member after hearing, for misconduct, incompetency, neglect of duty or for any other sufficient cause.
No public member appointed pursuant to this section shall have any association or relationship with the profession or a member thereof regulated by the board of which he is a member, where such association or relationship would prevent such public member from representing the interest of the public. Such a relationship includes a relationship with members of one's immediate family; and such association includes membership in the profession regulated by the board. To receive services rendered in a customary client relationship will not preclude a prospective public member from appointment. This paragraph shall not apply to individuals who are public members of boards on the effective date of this act.
It shall be the responsibility of the Attorney General to insure that no individual with the aforementioned association or relationship or any other questionable or potential conflict of interest shall be appointed to serve as a public member of any board regulated by this section.
Where a board is required to examine the academic and professional credentials of an applicant for licensure or to test such applicant orally, no public member appointed pursuant to this section shall participate in such examination process; provided, however, that public members shall be given notice of and may be present at all such examination processes and deliberations concerning the results thereof, and, provided further, that public members may participate in the development and establishment of the procedures and criteria for such examination processes.
c. The Governor shall designate a department in the Executive Branch of the State Government which is closely related to the profession or occupation regulated by each of the boards or commissions designated in section 1 of P.L.1971, c.60 (C.45:1-2.1) and shall appoint the head of such department, or the holder of a designated office or position in such department, to serve without compensation at the pleasure of the Governor as a member of such board or commission.
d. A majority of the voting members of such boards or commissions shall constitute a quorum thereof and no action of any such board or commission shall be taken except upon the affirmative vote of a majority of the members of the entire board or commission.
(cf: P.L.2012, c.71, s.14)
20. (New section) a. Each licensee shall complete not less than six hours of continuing education requirements as a condition of licensure renewal pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill).
b. The board shall:
(1) approve continuing education courses, course providers, and instructors. Entities approved by the board as home improvement or home elevation contractor instructors, pursuant to section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill), shall be deemed approved providers of continuing education courses. Building, construction, contracting and related professional trade associations that qualify under the standards to be established by the board as approved providers may offer approved continuing education courses;
(2) confer continuing education credits for courses completed in other states or jurisdictions of the United States on topics approved by the board as appropriate for elective courses, provided that the courses have been approved as continuing education courses by the agency exercising regulatory authority over home improvement or home elevation contractors in the other state or jurisdiction of the United States and that satisfactory evidence of the licensees' attendance at and completion of the courses is provided to the board by the course provider;
(3) confer continuing education credits for courses offered in this State on topics deemed of a timely nature but which have not been granted prior approval by the board, provided that the courses are advertised prior to the time of offering as not having been approved, the course provider eventually submits and receives approval of the course offering, and satisfactory evidence of the licensee's attendance at and completion of the course is provided to the board by the course provider;
(4) set parameters for the auditing and monitoring of course providers;
(5) establish, by regulation, the amount of the application fee payable for continuing education course providers approved by the board and providers seeking approval and individuals seeking approval as instructors of a continuing education course. These fees shall be non-refundable and shall be in amounts which do not exceed the costs incurred by the board to review these applications;
(6) waive or grant an extension to comply with continuing education requirements, in whole or in part, on the grounds of illness, emergency, hardship or active duty military service; and
(7) confer continuing education credits upon a licensee who is approved by the board as an instructor of an approved continuing education course offered by an approved provider. Licensees approved by the board to instruct an approved continuing education course shall receive twice the credit conferred upon those licensees attending the course. Regardless of the number of times during a biennial licensure term that the same approved course is taught by that licensee, that licensee shall receive double the continuing education credit for that course only once to satisfy part of the continuing education requirement for the renewal of their license.
21. (New section) a. Continuing education courses may be delivered in a classroom setting or, to the extent practicable, offered via the Internet or video modalities, subject to the approval by the board of the providers and the content of the courses and of the measures utilized to ensure the security and integrity of the course delivery process. The board may approve continuing education courses which include periodic progress assessments and the achievement of a satisfactory level of performance by the licensee on progress assessments as a condition to continuing to a succeeding segment of the course. The board shall not require, as a condition of the receipt of credit for attendance at any continuing education course, that a licensee pass a comprehensive examination testing the licensee's knowledge of the entire course content.
b. A licensee may fulfill all continuing education requirements in-person, via the Internet or video modalities, or through a combination of these options.
22. (New section) Continuing education requirements, as set forth by the board, shall be completed on or before the date the biennial license expires. Any licensee required to complete continuing education requirements who fails to do so prior to the date of expiration of a biennial license term shall be subject to a reasonable processing fee, as determined by the board, of not more than $200, unless a waiver was granted by the board pursuant to paragraph (6) of subsection b. of section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill).
23. (New section) a. Not less than 50 percent of the continuing education courses of study that licensees are required to complete as a condition for licensure renewal shall demonstrate significant intellectual or practical content and deal with matters directly related to home improvement or home elevation contracting, workforce safety, or the business of running a company in the home improvement or home elevation industry or trade. In no event shall the board require that courses in these core topics comprise more than 60 percent of the total continuing education hours required for the renewal of any license.
b. In the case of continuing education courses and programs, each hour of instruction shall be equivalent to one credit.
24. (New section) Course providers shall maintain records of the successful completion of continuing education courses by licensees and shall transmit this data to the board in a manner as directed by the board.
25. Section 1 of P.L.2004, c.16 (C.56:8-136) is amended to read as follows:
1. [This act] P.L.2004, c.16 (C.56:8-136 et seq.) shall be known and may be cited as the "Contractors' Business Registration Act."
(cf: P.L.2004, c.16, s.1)
26. Section 2 of P.L.2004, c.16 (C.56:8-137) is amended to read as follows:
2. As used in [this act] P.L.2004, c.16 (C.56:8-136 et seq.):
"Board" means the New Jersey State Board of Home Improvement and Home Elevation Contractors.
"Contractor" means [a person engaged in the business of making or selling home improvements and includes a corporation, partnership, association and any other form of business organization or entity, and its officers, representatives, agents and employees] an individual providing home improvement or home elevation services, or both types of services, for a corporation, partnership, association, sole proprietorship, and any other form of business organization or entity that enters into contracts for home improvement, home elevation, or both types of services.
"Contractor business" means a business that is a corporation, partnership, association, sole proprietorship or any other form of business organization or entity that provides home improvement, home elevation, or both types of services with at least one employee who is a licensed contractor, as defined pursuant to this section. An individual who provides services included in the definition of "home improvement" and who earns a maximum of $1,500 per contract and $25,000 on an annual basis for those services shall be required to maintain registration and comply with registration requirements pursuant to section 3 of P.L.2004, c.16 (C.56:8-138), but shall not be required to have at least one employee who is a licensed contractor.
"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.
"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.
"Home elevation" means any home improvement that involves raising an entire residential [or non-commercial] structure to a higher level above the ground.
"Home elevation contractor" means a contractor who engages in the practice of home elevation and is authorized to perform home improvement services.
"Home improvement" means the remodeling, altering, renovating, repairing, restoring, modernizing, moving, demolishing, or otherwise improving or modifying of the whole or any part of any residential [or non-commercial] property. Home improvement shall also include insulation, installation, [home elevation] and the conversion of existing commercial structures into residential [or non-commercial] property. Home improvement shall not include the construction of a new residential property.
"Home improvement contract" means [an oral or] a written agreement , or oral agreement if the cost of services is expected to be $500 or less, for the performance of a home improvement between a home improvement or home elevation contractor business and an owner, tenant or lessee, of a residential [or non-commercial] property, and includes all agreements under which the contractor is to perform labor or render services for home improvements or for home elevations, or furnish materials in connection therewith.
"Limited specialty services license" means a license issued by the board that authorizes an individual only to perform services in a specialty of home improvement, the scope of which shall be determined by the board.
"Limited specialty services licensee" means an individual licensed by the board to provide limited specialty home improvement services.
"Principal home improvement contractor" or "principal home elevation contractor" means a licensed home improvement or home elevation contractor who oversees the performance of services for contracts (1) valued at a minimum of $120,000 and (2) that require the submittal of plans with more than one subcode. A principal home improvement or principal home elevation contractor may also provide services as a home improvement contractor or home elevation contractor if a contract is valued at less than $120,000 or does not require submittal of plans with more than one subcode.
"Residential [or non-commercial] property" means any single or multi-unit structure used in whole or in part as a place of residence, and all structures appurtenant thereto, and any portion of the lot or site on which the structure is situated which is devoted to the residential use of the structure.
(cf: P.L.2014, c.34, s.3)
27. Section 3 of P.L.2004, c.16 (C.56:8-138) is amended to read as follows:
3. a. [On or after December 31, 2005, no person] No contractor business shall offer to perform, or engage, or attempt to engage in the business of making or selling home improvements unless registered with the Division of Consumer Affairs in accordance with the provisions of [this act] P.L.2004, c.16 (C.56:8-136 et seq.).
b. Every contractor business shall annually register with the director. Application for registration shall be on a form provided by the division and shall be accompanied by a reasonable fee, set by the director in an amount sufficient to defray the division's expenses incurred in administering and enforcing [this act] P.L.2004, c.16 (C.56:8-136 et seq.).
c. Every contractor business required to register under [this act] P.L.2004, c.16 (C.56:8-136 et seq.) shall file an amended registration within 20 days after any change in the information required to be included thereon. No fee shall be required for the filing of an amendment.
d. A contractor business that performs home improvement or home elevation services pursuant to a contract (1) valued at minimum of $120,000 and (2) that require the submittal of plans with more than one subcode shall be required to employ at least one licensed principal home improvement contractor or licensed principal home elevation contractor, as applicable.
e. A contractor business that performs home improvement or home elevation services pursuant to contracts valued at less than $120,000 shall be required to employ at least one licensed home improvement or licensed home elevation contractor, as applicable, unless the registered contractor business performs only limited specialty services.
f. A contractor business that performs services pursuant to contracts valued at less than $120,000 and offers only specialty services shall employ at least one individual who holds a limited specialty services license that corresponds to the services that the contractor business offers. A contractor business that does not employ a principal home improvement or principal home elevation contractor or a licensed home improvement or licensed home elevation contractor shall offer services only in the specialties for which the business employs limited specialty services licensees.
g. A contractor business that is required to employ a principal home improvement or principal home elevation contractor pursuant to subsection d. of this section, a licensed home improvement or licensed home elevation contractor pursuant to subsection e. of this section, or a limited specialty services licensee pursuant to subsection f. of this section shall, in its application for initial registration and for registration renewal, disclose the identity of the applicable contractor and update the division within 10 days if the identity of the applicable contractor changes.
h. The provisions of subsections d. through g. of this section shall remain inoperative until the first day of the sixth month next following the promulgation of rules and regulations by the New Jersey State Board of Home Improvement and Home Elevation Contractors.
(cf: P.L.2004, c.155, s.1)
28. Section 1 of P.L.2013, c.144 (C.56:8-138.1) is repealed.
29. Section 1 of P.L.2014, c.34 (C.56:8-138.2) is amended to read as follows:
1. a. In addition to complying with the other requirements of the "Contractors' Business Registration Act," P.L.2004, c.16 (C.56:8-136 et seq.), no [person] business shall offer to perform, or engage, or attempt to engage in the business of home elevation unless registered with the division as a home elevation contractor business.
b. The division shall adopt rules and regulations pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), to effectuate the provisions of P.L.2014, c.34 (C.56:8-138.2 et al.) with regard to registration of home elevation [contractors] contractor businesses, and may establish fees for this purpose. Notwithstanding the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.) to the contrary, the Division of Consumer Affairs may adopt immediately upon filing with the Office of Administrative Law rules and regulations for this purpose, which shall be effective for a period not to exceed 270 days following the date of enactment of P.L.2014, c.34 (C.56:8-138.2 et al.), and may thereafter be amended, adopted, or readopted, by the division in accordance with the requirements of the "Administrative Procedure Act".
c. In addition to any other civil or criminal penalty that may apply, any person who makes a false statement in connection with the process for registration as a home elevation contractor business pursuant to this section or in regard to any statement required to be made pursuant to section 7 of P.L.2004, c.16 (C.56:8-142) shall be liable for a civil penalty of not less than $10,000 or more than $25,000. Such penalty may be imposed by the director and shall be collected by summary proceedings instituted in accordance with the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).
d. In addition to any other action that may be authorized by law, the director may suspend or revoke the home improvement contractor business registration and home elevation contractor business registration of any [person who] business that violates any provision of P.L.2014, c.34 (C.56:8-138.2 et al.). In the case of a suspension or revocation of a registration of a contractor business, the division shall notify the board.
(cf: P.L.2014, c.34, s.1)
30. Section 4 of P.L.2004, c.16 (C.56:8-139) is amended to read as follows:
4. Except for [persons] businesses exempted pursuant to section 5 of [this act] P.L.2004, c.16 (C.56:8-140), any [person who] business that advertises in print or electronic media or puts out any sign or card or other device on or after December 31, 2005, which would indicate to the public that [he] it is a contractor in New Jersey, or [who] that causes [his] its name or business name to be included in a classified advertisement or directory in New Jersey on or after December 31, 2005, under a classification for home improvements covered by [this act] P.L.2004, c.16 (C.56:8-136 et seq.), is subject to the provisions of [this act] P.L.2004, c.16 (C.56:8-136 et seq.). This section shall not be construed to apply to simple residential alphabetical listings in standard telephone directories.
(cf: P.L.2004, c.155, s.2)
31. Section 6 of P.L.2004, c.16 (C.56:8-141) is amended to read as follows:
6. In addition to any other procedure, condition or information required by [this act] P.L.2004, c.16 (C.56:8-136 et seq.):
a. Every applicant shall file a disclosure statement with the director stating whether the applicant has been convicted of any crime, which for the purposes of [this act] P.L.2004, c.16 (C.56:8-136 et seq.) shall mean a violation of any of the following provisions of the "New Jersey Code of Criminal Justice," Title 2C of the New Jersey Statutes, or the equivalent under the laws of any other jurisdiction:
(1) Any crime of the first degree;
(2) Any crime which is a second or third degree crime and is a violation of chapter 20 or 21 of Title 2C of the New Jersey Statutes; or
(3) Any other crime which is a violation of N.J.S.2C:5-1, 2C:5-2, 2C:11-2 through 2C:11-4, 2C:12-1, 2C:12-3, 2C:13-1, 2C:14-2, 2C:15-1, subsection a. or b. of 2C:17-1, subsection a. or b. of 2C:17-2, 2C:18-2, 2C:20-4, 2C:20-5, 2C:20-7, 2C:20-9, 2C:21-2 through 2C:21-4, 2C:21-6, 2C:21-7, 2C:21-12, 2C:21-14, 2C:21-15, or 2C:21-19, chapter 27 or 28 of Title 2C of the New Jersey Statutes, N.J.S.2C:30-2, 2C:30-3, 2C:35-5, 2C:35-10, 2C:37-1 through 2C:37-4.
b. The director may refuse to issue or may suspend or revoke any registration issued by him upon proof that the applicant or holder of the registration:
(1) Has obtained a registration through fraud, deception or misrepresentation;
(2) Has engaged in the use or employment of dishonesty, fraud, deception, misrepresentation, false promise or false pretense;
(3) Has engaged in gross negligence, gross malpractice or gross incompetence;
(4) Has engaged in repeated acts of negligence, malpractice or incompetence;
(5) Has engaged in professional or occupational misconduct as may be determined by the director;
(6) Has been convicted of any crime [involving moral turpitude or any crime relating adversely] that has a direct and substantial relationship to the activity regulated by [this act] P.L.2004, c.16 (C.56:8-136 et seq.) or is of a nature such that registration of the individual would be inconsistent with the public's health, safety, or welfare. For the purpose of this subsection a plea of guilty, non vult, nolo contendere or any other such disposition of alleged criminal activity shall be deemed a conviction;
(7) Has had his authority to engage in the activity regulated by the director revoked or suspended by any other state, agency or authority for reasons consistent with this section;
(8) Has violated or failed to comply with the provisions of any act or regulation administered by the director;
(9) Is incapable, for medical or any other good cause, of discharging the functions of a [licensee] registrant in a manner consistent with the public's health, safety and welfare.
c. An applicant whose registration is denied, suspended, or revoked pursuant to this section shall, upon a written request transmitted to the director within 30 calendar days of that action, be afforded an opportunity for a hearing in a manner provided for contested cases pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.).
d. An applicant shall have the continuing duty to provide any assistance or information requested by the director, and to cooperate in any inquiry, investigation, or hearing conducted by the director.
e. If any of the information required to be included in the disclosure statement changes, or if additional information should be added after the filing of the statement, the applicant shall provide that information to the director, in writing, within 30 calendar days of the change or addition.
f. Notwithstanding the provisions of paragraph (6) of subsection b. of this section, no individual shall be disqualified from registration or shall have registration revoked [on the basis of any conviction disclosed if the individual has affirmatively demonstrated to the director clear and convincing evidence of the individual's rehabilitation. In determining whether an individual has affirmatively demonstrated rehabilitation, the following factors shall be considered:
(1) The nature and responsibility of the position which the convicted individual would hold;
(2) The nature and seriousness of the offense;
(3) The circumstances under which the offense occurred;
(4) The date of the offense;
(5) The age of the individual when the offense was committed;
(6) Whether the offense was an isolated or repeated incident;
(7) Any social conditions which may have contributed to the offense; and
(8) Any evidence of rehabilitation, including good conduct in prison or in the community, counseling or psychiatric treatment received, acquisition of additional academic or vocational schooling, successful participation in correctional work-release programs, or the recommendation of persons who have had the individual under their supervision] solely because the person has been convicted of or engaged in acts constituting any crime or offense, unless the crime or offense has a direct or substantial relationship to the activity regulated by P.L.2004, c.16 (C.56:8-136 et seq.) or is of a nature such that registration of the person would be inconsistent with the public's health, safety, or welfare. For the purposes of this section, a judgment of conviction or a plea of guilty, non vult, nolo contendere or any other such disposition of alleged criminal activity shall be deemed a conviction. In making this determination, an entity shall consider the following:
(a) the nature and seriousness of the crime or offense and the passage of time since its commission;
(b) the relationship of the crime or offense to the purposes of regulating the profession or occupation regulated by the entity;
(c) any evidence of rehabilitation of the person in the period of time following the prior conviction that may be made available to the entity; and
(d) the relationship of the crime or offense to the ability, capacity, and fitness required to perform the duties and discharge the responsibilities of the profession or occupation regulated by the entity.
(cf: P.L.2004, c.16, s.6)
32. Section 7 of P.L.2004, c.16 (C.56:8-142) is amended to read as follows:
7. a. On or after December 31, 2005, every registered contractor business who is engaged in home improvements shall secure, maintain and file with the director proof of a certificate of commercial general liability insurance in a minimum amount of $500,000 per occurrence and workers' compensation insurance unless exempted by law.
b. Every registered contractor business engaged in home improvements whose commercial general liability insurance policy or workers' compensation insurance policy is cancelled or nonrenewed shall submit to the director a copy of the certificate of commercial general liability insurance or workers' compensation insurance for a new or replacement policy which meets the requirements of subsection a. of this section [before the former policy is no longer effective] as soon as is practicable following the cancellation or nonrenewal of the former policy, but in no case more than 10 days following the cancellation or nonrenewal of the former policy.
c. Every home elevation contractor business engaged in performing home elevations, in addition to the insurance required pursuant to subsection a. of this section, shall secure and maintain cargo or other insurance that specifically covers home elevation activities, in a minimum amount of $1,000,000 per occurrence to cover damages or other losses to the homeowner, lessee, tenant or other party resulting from a home elevation, except as otherwise provided in this subsection. The Director of the Division of Consumer Affairs in consultation with the Department of Banking and Insurance may promulgate rules and regulations to implement this subsection, which rules and regulations also may require that [home elevation contractors] contractor businesses engaged in home elevations secure and maintain additional insurance of such kind and in such amounts as the director may determine in consultation with the Department of Banking and Insurance. [In addition to or as an alternative to the insurance required by this subsection, the director may also require the posting of a bond in favor of the owner, lessee, tenant or other party to the home improvement contract for home elevation. Every bond and insurance policy required to be maintained under this subsection shall provide that the issuer of that bond or policy shall give the director written notice of cancellation or non-renewal of the bond or policy within 10 days of the cancellation or non-renewal.]
d. A home elevation contractor business, prior to entering into an agreement to perform a home elevation, shall provide proof of insurance to the homeowner including the issuing insurer, policy number, type, and amount of insurance coverage maintained by the contractor business in accordance with this section.
e. Every contractor business that is engaged in home improvement or home elevation services shall maintain, in effect during the entire period of registration:
(1) a compliance bond issued by one or more sureties authorized to transact business in this State;
(2) an irrevocable letter of credit issued by a bank; or
(3) securities, moneys or other security acceptable to the division to fulfill the requirements of this section.
f. The principal sum of the compliance bond, letter of credit, or securities, moneys or other security shall be a minimum of:
(1) $50,000 for the performance of services pursuant to a contract valued at more than $120,000 or for the performance of services, in the previous 12 months, for contracts valued at a minimum of $750,000;
(2) $25,000 for the performance of services pursuant to a contract valued between $10,000 and $120,000 or for the performance of services, in the previous 12 months, for contracts valued between $150,000 and $750,000; and
(3) $10,000 for the performance of services pursuant to a contract valued at less than $10,000 or for the performance of services, in the previous 12 months, for contracts valued less than $150,000.
g. The contractor business shall, from time to time, to the extent that claims are paid, promptly replenish the amount of the compliance bond, letter of credit, securities, moneys or other security maintained pursuant to paragraphs (1) through (3) of subsection f. of this section.
h. The compliance bond, letter of credit, or securities, moneys, or other security shall cover penalties assessed by the division for violations of P.L.2004, c.16 (C.56:8-136 et seq.).
i. The compliance bond, letter of credit, or securities, moneys, or other security shall not be payable for treble damage claims pursuant to P.L.1960, c.39 (C.56:8-1 et seq.).
j. The aggregate liability of the surety, bank, or issuer of securities, moneys or other security to all individuals for all breaches of the conditions of the compliance bond, letter of credit or the securities, moneys or other security shall not exceed the amount of the bond, letter of credit, or the securities, moneys or other security.
k. Every bond, letter of credit, or securities, moneys, or other security shall provide that cancellation or nonrenewal of the bond, letter of credit, or securities, moneys, or other security shall not be effective unless and until at least 10 days' notice of intention to cancel or nonrenew the bond, letter of credit, or securities, moneys, or other security has been received in writing by the contractor business from the surety, bank, or other issuer.
l. Dollar amounts required pursuant to this section for general liability insurance and for a compliance bond, letter of credit, or securities, moneys, or other securities may be adjusted by the division if a contractor business registered pursuant to section 3 of P.L.2004, c.16 (C.56:8-138) provides only limited specialty services.
(cf: P.L.2014, c.34, s.4)
33. Section 11 of P.L.2004, c.16 (C.56:8-146) is amended to read as follows:
11. a. It is an unlawful practice and a violation of P.L.1960, c.39 (C.56:8-1 et seq.) to violate any provision of [this act] P.L.2004, c.16 (C.56:8-136 et seq.).
b. In addition to any other penalty provided by law, a person who knowingly violates any of the provisions of [this act] P.L.2004, c.16 (C.56:8-136 et seq.) is guilty of a crime of the fourth degree.
(cf: P.L.2004, c.16, s.11)
34. Section 2 of P.L.2021, c.482 (C.56:8-146.1) is amended to read as follows:
2. In addition to any other penalty provided by law, a [person who] a person who or contractor business that knowingly violates section 10 of P.L.2004, c.16 (C.56:8-145) or who otherwise transfers a registration obtained pursuant to section 3 of P.L.2004, c.16 (C.56:8-138) shall be liable to a civil penalty of not more than $15,000 for the first violation and not more than $25,000 for the second and each subsequent violation.
(cf: P.L.2021, c.482, s.2)
35. Section 12 of P.L.2004, c.16 (C.56:8-147) is repealed.
36. Section 13 of P.L.2004, c.16 (C.56:8-148) is amended to read as follows:
13. [This act] P.L.2004, c.16 (C.56:8-136 et seq.) shall not deny to any municipality the power to inspect a [contractor's] contractor business' work or equipment, the work of a contractor business [who] that performs improvements to commercial property, or the power to regulate the standards and manners in which the [contractor's] contractor business' work shall be done.
(cf: P.L.2004, c.16, s.13)
37. Section 14 of P.L.2004, c.16 (C.56:8-149) is amended to read as follows:
14. a. The director shall establish and undertake a public information campaign to educate and inform contractors and contractor businesses and the consumers of this State of the provisions of [this act] P.L.2004, c.16 (C.56:8-136 et seq.). The public information campaign shall include, but not be limited to, the preparation, printing and distribution of booklets, pamphlets or other written pertinent information.
b. The director shall provide a toll-free telephone number for consumers making inquiries regarding contractors and contractor businesses.
(cf: P.L.2004, c.16, s.14)
38. Section 15 of P.L.2004, c.16 (C.56:8-150) is amended to read as follows:
15. Nothing in [this act] P.L.2004, c.16 (C.56:8-136 et seq.) shall limit the application of P.L.1960, c.39 (C.56:8-1 et seq.), or any regulations promulgated thereunder, in regard to the registration or regulation of contractors and contractor businesses.
(cf: P.L.2004, c.16, s.15)
39. Section 16 of P.L.2004, c.16 (C.56:8-151) is amended to read as follows:
16. a. [On or after December 31, 2005, every] Every home improvement contract for a purchase price in excess of $500, and all changes in the terms and conditions of the contract, shall be in writing. The contract shall be signed by all parties thereto, including the home improvement contractor licensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) and shall clearly and accurately set forth in legible form and in understandable language all terms and conditions of the contract, including but not limited to:
(1) The legal name, business address, and registration number of the contractor business, any contractor who will provide home improvement services, and the license number of the contractor licensed pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill);
(2) A copy of the certificate of commercial general liability insurance required of a contractor business pursuant to section 7 of [this act] P.L.2004, c.16 (C.56:8-142) and the telephone number of the insurance company issuing the certificate; and
(3) The total price or other consideration to be paid by the owner, including the finance charges.
b. On or after December 31, 2005, a home improvement contract may be cancelled by a consumer for any reason at any time before midnight of the third business day after the consumer receives a copy of it. In order to cancel a contract the consumer shall notify the contractor business of the cancellation in writing, by registered or certified mail, return receipt requested, or by personal delivery, to the address specified in the contract. All moneys paid pursuant to the cancelled contract shall be fully refunded within 30 days of receipt of the notice of cancellation. If the consumer has executed any credit or loan agreement through the contractor business to pay all or part of the contract, the agreement or note shall be cancelled without penalty to the consumer and written notice of that cancellation shall be mailed to the consumer within 30 days of receipt of the notice of cancellation. The contract shall contain a conspicuous notice printed in at least 10-point bold-faced type as follows:
"NOTICE TO CONSUMER
YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT. IF YOU WISH TO CANCEL THIS CONTRACT, YOU MUST EITHER:
1. SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR
2. PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:
(Name of Contractor Business)
(Address of Contractor Business)
(Phone Number of Contractor Business)
If you cancel this contract within the three-day period, you are entitled to a full refund of your money. Refunds must be made within 30 days of the [contractor's] contractor business's receipt of the cancellation notice."
(cf: P.L.2004, c.155, s.4)
40. This act shall be effective immediately, but section 9 through 13 shall remain inoperative until such time as provided in section 5 and sections 7, 8, and 14 through 20 shall be effective on the first day of the twenty-fifth month next following enactment. The director and the board may take such anticipatory administrative action in advance thereof as shall be necessary for implementation of this act.
STATEMENT
This bill establishes a board to govern licensed contractors in the home improvement and home elevation industries. The bill also updates current law to oversee the registration of home improvement and home elevation contractors' businesses.
Additionally, under the bill, a new level of licensure is created to allow an individual to provide services in a limited specialty of home improvement. The board is to establish specific requirements, which may include passage of an exam, for the specialty services licensees. Moreover, with board membership, the Governor has until the first day of the sixth month after enactment of the bill to appoint members. The board is to meet within 60 days after the appointment of the members. Rules and regulations are to be promulgated for specific provisions of the substitute prior to it being fully operative but a set time in which to promulgate the rules and regulations is updated to align with the effective date of the substitute, which is to be fully operative on the first day of the twenty-fifth month after the date of enactment.
Added as part of the board's responsibilities is the requirement that if a license of a contractor at any level - principal, limited, or regular home improvement or home elevation - is not renewed or is suspended or revoked, the board is to notify the Division of Consumer Affairs so that the division is aware and ensures that the individual with the encumbered license does not impact the registration of the business that employs the individual. Moreover, the board is to establish standards for the scopes of practice for each type of licensee it oversees and for the supervision of licensees, except for those at the principal level. Additionally, the board is to develop curriculum for or to identify courses in which an applicant can enroll to prepare for examinations.
Under the bill, licensure as either a home improvement or home elevation contractor can be achieved through completion of an apprenticeship or through experience. If applying through the experience option, an individual is to perform services subject to the direct oversight of a contractor, include the name of the home improvement or home elevations business for whom the individual worked on the application, and is to attest, as part of the application, that, when performing contracting services, industry best practices where adhered to and standard procedures were followed in a safe and healthy manner.
This bill stipulates that individuals, including limited specialty services licensees, are subject to fines if it is determined that an individual made false statements in connection with the process to obtain licensure. It is also prohibited in the bill to falsely advertise, including through electronic media, regarding qualifications of an individual to provide contracting services. Additionally, the bill specifies individuals exempt from licensure. The exemption includes individuals who provide home improvement services but earn a maximum of $1,500 per contract and $25,000 annually. An individual exempted under these maximum amounts is to still subject to the requirement to maintain annual registration, to be handled by the Division of Consumer Affairs rather than the board. However, a party exempted pursuant to these maximum dollar amounts will be required to obtain licensure by the board if, at the time of annual registration renewal, the earnings of the individual demonstrate that the dollar amounts increased in the previous calendar year. The bill also requires the board to establish the process by which a limited specialty services licensee can obtain full licensure as a home improvement or home elevation contractor.
This bill preserves and updates most provisions in current law that govern the registration requirements and process for contractors' businesses. It also stipulates that a contractor business is to employ at least one licensed contractor.
This bill updates language on the oversight of home improvement and home elevation businesses by the Division of Consumer Affairs. Language is added throughout the current law to ensure that its provisions apply to the contractors' businesses. This includes incorporating the provisions requiring general liability insurance, workers' compensation insurance, and either a bond, letter of credit, or other type of security. Language is also added to require certain contracts for home improvement services to include the name and license number of the contractor providing the services and the registration number of the business for which the contractor provides services. Additionally, the division is to notify the board when a contractor business has its registration suspended, revoked or not renewed.
