summary
Introduced
01/09/2024
01/09/2024
In Committee
01/09/2024
01/09/2024
Crossed Over
Passed
Dead
Introduced Session
2024-2025 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 expands the requirements for home improvement contractors in New Jersey. The key provisions are:
1. Exemptions from registration, insurance, and bonding requirements are limited to specific entities like licensed professionals and public utilities. The exemption for homeowners performing work on their own property is eliminated.
2. Home improvement contractors must now register every two years, up from annually, and maintain a minimum $50,000 bond or other security to provide restitution to consumers harmed by contractor violations.
3. The bill makes it an unlawful practice for a contractor to fail to complete a home improvement as per the contract, and allows consumers who suffer losses to seek restitution.
4. Municipalities are prohibited from issuing construction permits to unregistered contractors, and can bring enforcement actions against contractors who violate the act.
5. The bill modifies home improvement contract requirements, including eliminating the 3-day right of cancellation except for bona fide emergencies, and prohibiting blank spaces in the contract.
Overall, the bill aims to strengthen protections for consumers contracting with home improvement contractors in New Jersey.
Committee Categories
Business and Industry
Sponsors (1)
Last Action
Introduced in the Senate, Referred to Senate Commerce Committee (on 01/09/2024)
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/2024/S135 |
| BillText | https://pub.njleg.gov/Bills/2024/S0500/135_I1.HTM |
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