summary
Introduced
03/03/2022
03/03/2022
In Committee
03/03/2022
03/03/2022
Crossed Over
Passed
Dead
01/08/2024
01/08/2024
Introduced Session
2022-2023 Regular Session
Bill Summary
This bill clarifies that the exemption from certain requirements of the "Contractor's Registration Act," afforded to the persons listed in section 5 of P.L.2004, c.16 (C.56:8-140), applies only to the registration, insurance, and bonding requirement for home improvement contractors. All home improvement contractors would continue to be subject to the other requirements of the act. Under the bill, a consumer would be permitted to waive the three day waiting period during which the consumer would otherwise have the right cancel a contract for home improvements in the event that the work is necessary to meet a bona fide emergency. The bill would provide a funding source for restitution to consumers who have been damaged by a contractor's violation of the "Contractor's Registration Act," by requiring registered contractors to post a bond. The bill establishes that a contractor would be liable for fines or penalties imposed on a consumer as a result of a contractor's failure to obtain construction permits. Work performed without a required permit, and thus not inspected by local building code officials, often violates building codes and zoning ordinances designed to protect the health and safety of residents. Finally, the bill makes it an unlawful practice under the consumer fraud act for a contractor to fail to complete a home improvement in accordance with the home improvement contract, and provides a consumer who suffers damage as a result of a violation of the "Contractor's Registration Act" with the remedy of restitution. An unlawful practice is punishable by a monetary penalty of not more than $10,000 for a first offense and not more than $20,000 for any subsequent offense. Additionally, violations can result in cease and desist orders issued by the Attorney General, the assessment of punitive damages, and the awarding of treble damages and costs to the injured party.
AI Summary
This bill clarifies and strengthens the "Contractor's Registration Act" in several ways:
1. It expands the exemptions from the Act's registration, insurance, and bonding requirements to include certain additional categories of individuals, such as those employed by community associations or residential property owners/managers.
2. It requires all registered home improvement contractors to maintain a $50,000 bond, letter of credit, or other security to provide restitution to consumers who suffer damages due to the contractor's violations of the Act.
3. It makes it an unlawful practice under the Consumer Fraud Act for a contractor to fail to complete a home improvement in accordance with the contract, and provides for restitution to affected consumers.
4. It allows municipalities to bring enforcement actions against contractors who violate the Act and to retain any fines or penalties recovered.
5. It modifies the requirements for home improvement contracts, including prohibiting blank spaces and requiring certain consumer protection notices.
6. It creates an exception to the 3-day right of cancellation for home improvement contracts addressing bona fide emergencies.
The bill aims to better protect consumers by strengthening contractor registration, bonding, and other requirements under the "Contractor's Registration Act."
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 03/03/2022)
Official Document
bill text
bill summary
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bill summary
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bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://www.njleg.state.nj.us/bill-search/2022/S2101 |
| BillText | https://www.njleg.state.nj.us/Bills/2022/S2500/2101_I1.HTM |
| Bill | https://www.njleg.state.nj.us/Bills/2022/S2500/2101_I1.PDF |
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