A2138 4R

An Act concerning the regulation of home improvement and home elevation contractors, revising various parts of the statutory law, and supplementing ⁴[P.L.2007, c.232 (C.2C:21-35) and]⁴ Title 45 of the ⁴[New Jersey] Revised⁴Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

⁴[1. P.L.2004, c.16 (C.56:8-136 et seq.), P.L.2013, c.144 (C.56:8-138.1), and P.L.2014, c.34 (C.56:8-138.2 et al.) are repealed.]⁴

⁴1. (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.”⁴

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 ¹[engaged in the business of making or selling] providing¹ home improvement or home elevation services, or both types of services, ¹[and includes] for¹ a corporation, partnership, association¹, sole proprietorship,¹ and any other form of business organization or entity ²that enters into ⁴contracts for⁴ home improvement, home elevation, or both types of ⁴[contracts] services⁴ with consumers ⁴[.²]^{4 1}[, and its officers, representatives, agents and employees]¹. ¹This 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 elevations 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.¹ 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.

⁴[“Home elevation contract” means a written agreement, or oral agreement if the cost of services is expected to be $500 or less, for the performance of a home elevation between a home elevation contractor and an owner, tenant or lessee, of a residential property, and includes all agreements under which the contractor is to perform the home elevation, or furnish materials in connection therewith.]⁴

"Home elevation contractor" means a contractor who engages in the practice of home elevation and is authorized to perform home ⁴[improvements, as defined in this section] improvement services⁴.

"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 ²,² installation and the conversion of existing commercial structures into residential property. ¹Home improvement shall not include the construction of a new residential property.¹

⁴["Home improvement contract" means 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 and an owner, tenant or lessee, of a residential property, and includes all agreements under which the contractor is to perform labor or render services for home improvements, or furnish materials in connection therewith.]⁴

“Home improvement contractor” means a contractor who engages solely in the practice of home improvement.

⁴“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.⁴

¹“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.¹ ²A 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.²

"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.

¹[“Responsible managing employee” means an individual who is licensed as a home improvement or home elevation contractor with at least five years of experience and who provides effective supervision over the professional services rendered pursuant to a home improvement or home elevation contract. An individual who qualifies for licensure as a home improvement or home elevation contractor pursuant to section 16 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall also qualify as a responsible managing employee.]¹

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, ¹[one member shall be a licensed home elevation contractor] of whom two shall represent ⁴[a]⁴ trade ⁴[association] associations⁴ focused on the home improvement industry, one member shall be a licensed construction code official¹, two ¹members¹ shall ¹[be members of] ⁴[represent¹] be members of⁴ the public, and one ¹member¹ 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 ¹[and the member who is a registered home elevation contractor shall have been so registered for at least four years immediately preceding appointment to the board]¹. ³The members first appointed shall be appointed no later than the first day of the ⁴[third] sixth⁴ month following enactment of P.L. , c. (C. ) (pending before the Legislature as this bill).³

Each member shall be appointed for a term of five years, except that of the members first appointed, ¹[the home elevation contractor member and a] two¹ home improvement contractor ¹[member] members¹ shall serve for a term of three years, two home improvement contractor members shall serve for a term of two years, and ¹[two] one¹ home improvement contractor ²[members] member² 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) ²a. The board shall be entitled to retain all funds collected as a result of fees paid for initial licensure ⁴[and registration,]⁴ and for licensure ⁴[and registration]⁴ renewal, reactivation, and reinstatement to administer and enforce the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill).

b.² Members of the board ²[shall] may² 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) ³a.³ The board shall organize within ⁴[30] 60⁴ 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.

³b. The board shall promulgate rules and regulations pursuant to the “Administrative ⁴[Procedures] Procedure⁴ Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of ⁴[this act, no later than the first day of the 10th month next following enactment of]⁴ P.L. , c. (C. ) (pending before the Legislature as this bill). The provisions of sections ⁴[3, 4, and 6] 9 through 13 of P.L. , c. (C. ) (pending before the Legislature as this bill)⁴ shall remain inoperative until ⁴[such time as the board promulgates] the first day of the sixth month next following the promulgation by the board of⁴ the rules and regulations.³

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. ¹develop education requirements and¹ develop or designate an examination or examinations to evaluate the knowledge, ability, and fitness of applicants ⁴for licensure⁴ 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 ¹. 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 ²[a mandatory] ⁴[an² examination preparation course^1
2that] the curriculum for or identifying courses in which⁴ an applicant may enroll in² ⁴to prepare for licensing examinations developed or designated pursuant to paragraph (1) of this subsection⁴;

c. review the qualifications of applicants for licensure;

d. issue and renew, on a biennial basis ¹[,] ⁴[:

(1)¹],⁴ licenses for home improvement and home elevation contractors; ⁴[¹and

(2) registrations for home improvement and home elevation businesses;¹]⁴

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.) ⁴and, 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 restored⁴;

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; ¹[and]¹

h. ¹establish standards for continuing education requirements; ³[and]³

i.¹ ⁴[³oversee registration of individuals registered pursuant to subsection d. of section 16 of P.L. , c. (C. ) (pending before the Legislature as this bill);and

j.³]⁴ promulgate rules and regulations pursuant to the “Administrative ⁴[Procedures] Procedure⁴ Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) ⁴;

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.⁴

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. ³[have successfully completed high school or the equivalent;

c.]³ demonstrate ³[, through an attestation as prescribed by the board,]³ completion of:

(1) ³through submission of an attestation as prescribed by the board,³ 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 ¹[under the direct supervision of] ⁴[for¹] subject to the direct oversight of⁴ a home improvement contractor ²or a home elevation contractor,²or performing home improvement and home elevation services ¹[under the direct supervision of] ⁴[for¹] subject to the direct oversight of⁴ a home elevation contractor. ⁴“Direct oversight” shall not require the supervising individual to remain on-site.⁴ ¹[For an applicant seeking licensure under this paragraph, the attestation]An application for licensure¹ shall require the signature of the applicant ⁴[and] ,⁴ ¹[of the home improvement or home elevation contractor who provided direct supervision of] the name and address of the home improvement or home elevation business for whom¹ the applicant ¹worked^{1 4}, 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 manner⁴.¹[The signature of the contractor who provided direct supervision may be an individual licensed pursuant to this section or licensed in accordance with the provisions of section 16 of P.L. , c. (C. ) (pending before the Legislature as this bill)]¹ ²The 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 State²;

³[d.] c.³ ¹completion 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) and¹ passage of an examination pursuant to ⁴paragraph (2) of⁴ subsection b. of section 6 of P.L. , c. (C. ) (pending before the Legislature as this bill);

³[e.] d.³ ¹[proof of financial stability and of compliance with section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) regarding general liability insurance for a home improvement contractor, or general liability insurance and cargo or other insurance that covers home elevation services for a home elevation contractor, and financial stability. If an applicant for licensure is an employee and not an owner of a home improvement or home elevation business, the applicant shall submit information demonstrating proof of general liability insurance, cargo or other insurance covering home elevations, if applicable, and financial stability that is maintained by the business owner;

f.]¹ 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 ⁴[9] 8⁴ of P.L. , c. (C. ) (pending before the Legislature as this bill); and

¹[g.] ³[f.¹] e.³ payment of all applicable fees.

⁴[³[¹g.] f.³ To register as a home improvement or home elevation business, a business shall submit, as part of the application to the board and in a form as determined by the board, proof of:

(1) general liability insurance ²[and] ,² workers’ compensation insurance ², and a compliance bond, letter of credit, or securities, moneys, or other securities² pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(2) employment by the business of at least one licensed home improvement or home elevation contractor; and

(3) compliance with all applicable tax, business, and other laws in the State.¹]⁴

⁴[8. (New section) a. ¹[Every licensed contractor who is engaged in home improvement or home elevation services] A home improvement or home elevation business¹ shall secure, maintain and file with the board proof of a certificate of ¹[.] :

(1)¹ commercial general liability insurance in a minimum amount of $500,000 per occurrence ¹; and

(2) workers’ compensation insurance.¹

b. ¹[Every licensed contractor engaged in providing home improvement or home elevation services] A registered business¹ whose commercial general liability insurance ¹or workers’ compensation¹ policy is cancelled or nonrenewed shall submit to the board¹, before the former policy is no longer available,¹ a copy of the certificate of ¹:

(1)¹ commercial general liability insurance for a new or replacement policy which meets the requirements of ¹paragraph (1) of¹ subsection a. of this section ¹[before the former policy is no longer effective]; or

(2) a copy of the certificate of workers’ compensation insurance for a new or replacement policy¹.

c. In addition to the insurance required pursuant to subsection a. of this section, every ¹[home elevation contractor] registered business¹ engaged in performing home elevations 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 board, in consultation with the director and the Department of Banking and Insurance, may promulgate rules and regulations to require that home elevation ¹[contractors] businesses¹ secure and maintain additional insurance of such kind and in such amounts as may be determined.

d. A home elevation ¹[contractor] business¹, 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 ¹[contractor] business¹ in accordance with this section.

e. Every ¹[licensed contractor who] registered business that¹ is engaged in home improvement or home elevation services shall maintain, in effect during the entire period of ²[licensure] registration² :

(1) a ¹compliance¹ 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) ²[with the board]² securities, moneys or other security acceptable to the board to fulfill the requirements of this section.

¹f.¹ The principal sum of the ¹compliance¹ bond, letter of credit, or securities, moneys or other security shall be a minimum of ¹[$100,000.] :

(1) ²[for Class A registered home improvement or home elevation contractors,]² $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) ²[for Class B licensed home improvement or home elevation contractors,]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) ²[for Class C licensed home improvement or home elevation contractors,]² $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.¹ The ¹[contractor] business¹ shall, from time to time, to the extent that claims are paid, promptly replenish the amount of ²the compliance² bond, letter of credit, securities, moneys or other security maintained ²[with the board]² ¹[to a minimum of $100,000]¹ pursuant ¹to paragraphs (1) through (3) of subsection f. of this section¹.

¹[f. The bond, letter of credit, or securities, moneys or other security shall be filed or deposited with the board and shall be executed to the State of New Jersey for the use or benefit of any consumer who, after entering into a home improvement or home elevation contract, incurs damages or suffers any loss arising out of a violation of P.L. , c. (C. ) (pending before the Legislature as this bill) by the contractor

g.] h.¹ The ²compliance² bond, letter of credit, or securities, moneys, or other security shall cover ¹[restitution and]¹ penalties ¹assessed by the board for violations of P.L. , c. (C. ) (pending before the Legislature as this bill)¹.

¹[h.] i.¹ ²[Any individual ¹[claiming] seeking to claim¹ against the bond, letter of credit, or securities, moneys or other security may maintain an action ¹[at law against the contractor and the surety, bank, or] with¹ the board ¹[, as the case may be]¹.

¹[i.] j.¹]² The ²compliance² bond, letter of credit, or securities, moneys, or other security shall not be payable for treble damage claims pursuant to the consumer fraud act, P.L.1960, c.39 (C.56:8-1 et seq.).

¹[j.] ²[k.¹ The board may make a claim against the bond, letter of credit, or securities, moneys or other security on behalf of a consumer, with notice to the licensed contractor.]²

¹[k.]²[ l.¹] j.² The aggregate liability of the surety, bank, or ²[the board] issuer of securities, moneys or other security² to all individuals for all breaches of the conditions of the ²compliance²bond, letter of credit or the securities, moneys or other security ²[held by the board]² shall not exceed the amount of the bond, letter of credit, or the securities, moneys or other security ²[held by the board]².

¹[l.] ²[m.¹ Everybond, letter of credit, or securities, moneys, or other security required to be filed shall provide that any consumer who may be claiming against the bond, letter of credit, or securities, moneys, or other security shall notify the board and the surety of the amount and nature of the claim prior to the initiation of any action at law against the ¹[contractor] business¹. The bond, letter of credit, or securities, moneys, or other security shall provide that the surety or bank may not pay any claim against the bond, letter of credit, or securities, moneys, or other security unless and until it shall have received authorization from the board to pay the claim.

¹[m.] n.¹ If the board determines that there is a substantial likelihood that the aggregate amount of claims against a bond will exceed the available principal amount of the bond, the board may apportion the proceeds of the bond among the claimants in an equitable manner.

¹[n.] o.¹] k.² Everybond, letter of credit, or securities, moneys, or other security ²[required to be filed with the board]² 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 ²[board] registered business² from the ²surety, bank, or other² issuer.

²[¹p. (1)]l. (1)² A business may reduce, by half, the amount of the ²compliance²bond, letter of credit, or securities, moneys or other securities required pursuant to paragraphs (1) through (3) of subsection f. of this section upon demonstration ²by a member of senior management of the business² of completion of, prior to the next registration renewal period, a course in financial responsibility and stability developed or designated by the board.

(2) The board shall have discretion to require a business ²that has a member of senior management who completed a course in financial responsibility and stability by the next registration renewal period² to maintain the full amount of thebond, letter of credit, or securities, moneys or other securities required pursuant to paragraphs (1) through (3) of subsection f. of this section if a business ²[or licensed contractor employed by the business has multiple complaints made against them by consumers] demonstrates on the application for registration renewal that a claim² or multiple claims ², in a dollar amount as determined by the board, were² made against the bond ²,² letter of credit, or securities, moneys or other securities held by the ²[licensee] business² .¹]⁴

⁴[9.] 8.⁴ (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 ¹for licensure¹ shall file a disclosure statement with the board, pursuant to subsection ³[e.] d.³ 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 ⁴or 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)⁴ 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 ⁴by⁴ 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; ⁴[or]⁴

(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 ⁴; or

(9) Has engaged in any other conduct enumerated in section 8 of P.L.1978, c.73 (C.45:1-21)⁴.

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 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 board, in writing, within 20 calendar days of the change or addition.

⁴[¹f. If a licensed home improvement or licensed home elevation contractor employed by a business registered pursuant to subsection ³[g.] f.³ of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) is the only contractor licensed pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) employed by the registered business and the individual leaves their employment, the registered business shall have 60 days within which to hire a licensed home improvement or home elevation contractor and notify the board of the change. If no new hire is made within 60 days, the board shall revoke the registration of the business. Upon the hiring of a new contractor licensed pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill), the registered business shall apply for reinstatement of registration.¹]⁴

⁴[10. (New section) a. Every contractor required to be licensed under P.L. , c. (C. ) (pending before the Legislature as this bill) shall be issued an identification badge by the board pursuant to subsection b. of this section. The identification badge shall be plainly visible and worn on the upper left corner of the torso when the contractor is performing ¹[, or engaging, or attempting to engage, in the business of selling]¹ home improvement or home elevation services ²[include a recent and clear photograph]².

b. The identification badge shall include a color photograph of the contractor's face, the contractor's name, the contractor's license number, and the name of the contractor's business displayed in a manner that will be plainly visible and permit recognition when worn by the contractor. The badge shall include a statement, written in such a way as to be plainly visible when worn by the contractor, that the badge is not for an electrical contractor, plumbing contractor or HVACR contractor license. The identification badge shall be made in such a way and of such material that any attempt to alter the badge will result in it being immediately, permanently and obviously ruined. The photograph included on the identification badge shall be taken no more than four weeks before the date upon which the identification badge is issued. A contractor shall apply for and obtain a new identification badge at least once every six years.

c. The board may charge the contractor a reasonable fee to cover the costs of the identification badge issued pursuant to this section.

d. A contractor who has been issued an identification badge pursuant to subsection b. of this section and whose license has been suspended, revoked, or has not been renewed, shall, within three days of that suspension, revocation or nonrenewal, surrender the identification badge to the board.

¹e. Notwithstanding the definition of “contractor” pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), if an employee of or individual contracted by a sole proprietorship, corporation, partnership, association, or other form of a business entity hired or contracted ²[sells] to sell² home improvement or home elevation services, or both types of services, in-person to consumers, an identification badge required pursuant to this section shall be required for the employee or contracted individual.

f. A temporary badge, in paper, ²[may] shall² be issued to a contractor ²and shall accompany the license of the contractor² in the event of a delay in the processing of the identification badge required pursuant to this section.¹]⁴

⁴[11. (New section) An individual who knowingly exhibits or displays an identification badge issued pursuant to subsection b. of section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill) and is not at that time licensed as a contractor pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill), including any contractor who has had the license revoked, suspended, or not renewed, is guilty of a crime of the fourth degree.]⁴

⁴[12.] 9.⁴ (New section) ⁴[a.]⁴ ³[No] Except for individuals exempted pursuant to section ⁴[15] 11⁴ of P.L. , c. (C. ) (pending before the Legislature as this bill), no³ individual shall ¹[offer to]¹ perform ¹[, or engage, or attempt to engage in the business of performing or selling]¹ home improvement services or home elevation services unless licensed by the board.

⁴[b. In addition to any other civil or criminal penalty that may apply, any individual who makes a false statement in connection with the process for licensure as a home improvement or home elevation contractor pursuant to section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) or who submits false information in regards to any submissions and filings required by the board pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) 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 board 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.).]⁴

⁴[13.] 10.⁴ (New section) ⁴a.⁴ Except for individuals exempted pursuant to section ⁴[15] 11⁴ of P.L. , c. (C. ) (pending before the Legislature as this bill), any individual ⁴[¹licensed or business registered pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill)¹]⁴ who ⁴or business that⁴ advertises in print or ⁴electronic media or who⁴ puts out any sign or card or other device which would indicate to the public that the individual is a contractor in New Jersey ⁴[¹, the business is a registered home improvement or home elevation contracting business in New Jersey,¹]⁴ 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.

⁴b. 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.⁴

⁴[14. (New section) a. All ¹[licensees] registered businesses¹ shall prominently display their ¹[license] registration¹ numbers within their places of business, in all advertisements distributed within this State, on business documents, contracts and correspondence with consumers of home improvement and home elevation services in this State, and on all commercial vehicles registered in this State and leased or owned by licensees and used by licensees for the purpose of providing home improvement or home elevation services, except for vehicles leased or rented to customers of licensees by a licensee or any agent or representative thereof.

b. Any invoice, contract or correspondence given by a licensee to a consumer shall prominently contain the toll-free telephone number provided pursuant to section 20 of P.L. , c. (C. ) (pending before the Legislature as this bill).]⁴

⁴[15.] 11.⁴ (New section) The provisions of sections 7, 8, 9,⁴[ ²10,² 12]⁴, ²[13 10, and]² ⁴[14 ², 16, 17, 21, 22, 23, 26, 27, 28, and 29²] 12, 13, 17, and 20 through 23⁴ 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 ⁴section 2 of⁴ 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;

³[e.] d.³ Any public utility as defined under R.S.48:2-13;

³[f.] e.³ 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) ²and as also applicable to P.L.1968, c.224 (C.17:16C-95 et seq.) ⁴[, except requirements under section 10 of P.L. , c. (C. ) (pending before the Legislature as this bill) regarding identification badges shall apply to individuals making in-person sales to consumers pursuant to P.L.1968, c.224 (C.17:16C-95 et seq.)²]⁴; ⁴[and]⁴

³[g.] f.³ Any home improvement or home elevation retailer with ⁴[a net worth] sales⁴ of more than $50,000,000, or employee of that retailer ⁴while 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)⁴.

⁴[16.] 12.⁴ (New section) ²a.² The provisions of subsections a., b., ³and³ c. ³[, and d.]³ of section 7 of P.L. , c. (C. ) (pending before the Legislature as this bill) shall not apply to an individual who ⁴, as of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill),⁴ has been registered as a home improvement ⁴or home elevation⁴ contractor in New Jersey for at least ¹[10] five¹ years ⁴[or to an individual who has at least ¹[10] five¹ years of experience in providing home elevation services who has been registered as a home improvement contractor in New Jersey for at least ¹[10] five¹ years or registered as a home elevation contractor in New Jersey for at least five years]⁴. ⁴[A license shall be issued ¹[to an individual]¹ upon] The board shall issue a license to an individual who meets the requirements of this subsection which shall take effect at the time of⁴ expiration of the contractor registration previously issued ¹[to the individual]¹ upon submission ⁴by an individual⁴ of an application in such form as may be prescribed by the board and payment of a fee established by the board.

²b. 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 principal home elevation contractor.²

³c. The provisions of subsections a., b., and c. of section 7 and the provisions of sections ⁴[26 through 30] 20 through 23⁴ 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. ⁴[An individual registered pursuant to subsection c. of this section shall:

(1) annually register with the board, in a form as prescribed by the board and for a fee as determined by the board. The form shall require an individual to demonstrate proof of earnings in order to qualify for registration under this subsection;

(2) comply with:

(a) paragraph (1) of subsection a. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) regarding commercial general liability insurance; and

(b) section 10 regarding the issuance of an identification badge; and

(3) be required to perform services agreed to in a contract pursuant to section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill) but shall only be required to include in the contract the following:

(a) the legal name, business address and registration number of the contractor;

(b) a copy of the certificate of commercial general liability insurance required pursuant to paragraph (1) of subsection a. of section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill);

(c) a “Notice to Consumer” pursuant to subsection b. of section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill); and

(d) the provisions of subsections e. through k. of section 21 of P.L. , c. (C. ) (pending before the Legislature as this bill)] 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.)⁴ .

e. An individual registered pursuant to subsection d. of this section shall be liable for penalties pursuant to subsection b. of section ⁴[12] 8⁴ 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.³

⁴[17.] 13.⁴ (New section) The provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) shall apply to any individual ⁴[engaging in this State] who engages or seeks to engage⁴ in any of the activities ⁴in this State which are⁴ regulated by ⁴the board pursuant to⁴ 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.

⁴[18.] 14.⁴ (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 ⁴[or registration]⁴ of home improvement or home elevation contractors or for the protection of homeowners by bonds or warranties required to be provided by ⁴[home improvement or home elevation contractors] contractor registration businesses pursuant to section 7 of P.L.2004, c.16 (C.56:8-142)⁴, 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) ²or who will obtain a license upon expiration of a registration pursuant to section ⁴[16] 12⁴ of P.L. , c. (C. ) (pending before the Legislature as this bill)²; ¹[or]¹

(2) an individual who is performing the home improvement or home elevation and is not required to be licensed pursuant to ²[sections] section² ⁴[15] 11⁴ ²[or 16]² of P.L. , c. (C. ) (pending before the Legislature as this bill) ¹; or

(3) a single-family homeowner who performs plumbing, electrical, or heating, ventilation, and air conditioning work in the homeowner’s own dwelling.¹

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.

⁴[19.] 15.⁴ (New section) a. P.L. , c. (C. ) (pending before the Legislature as this bill) shall not deny to any municipality the power ¹, pursuant to the “State Uniform Construction Code Act,” P.L.1975, c.217 (C.52:27D-119 et seq.),¹ 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.

⁴[20.] 16.⁴ (New section) a. The division shall establish and undertake a public information campaign to educate and inform contractors ¹, applicable businesses,¹ 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 ⁴[contractors] any individual engaging in or offering to engage in home improvement, home elevation, or limited specialty services⁴ or shall promote, as part of the public information campaign, any toll-free telephone number already established for inquiries.

⁴[21. (New section) a. Every contract for a purchase price in excess of $500 for home improvement, home elevation, or both types of services, and all changes in the terms and conditions of the contract, shall be in writing. The contract shall be signed by all parties thereto and shall not contain any blank spaces for information, including, but not limited to, terms and conditions, to be added after the contract is signed by the consumer, 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, ¹registration number of the business,¹ and license number of the contractors ¹performing the ²[work]² services pursuant to the contract¹;

(2) the legal name and license number of the contractor designated as the ¹[responsible managing employee] principal home improvement contractor or home elevation contractor, if applicable,¹ for the services provided;

(3) a copy of the certificate of commercial general liability insurance, of cargo or other insurance covering home elevations, if applicable, required pursuant to section 8 of P.L. , c. (C. ) (pending before the Legislature as this bill) and the telephone number of the insurance company issuing the certificate; and

(4) the total price or other consideration to be paid by the owner, including the finance charges.

b. the contract shall include the following notice in 10-point bold type or larger, directly above the space provided for the signature of the consumer:

"NOTICE TO CONSUMER

Do not sign this contract if any of the spaces for information have been left blank.

You are entitled to a copy of the contract at the time you sign.

Keep it to protect your legal rights.

Do not sign any completion certificate or agreement stating that you are satisfied with the entire project before this project is complete. Contractors are prohibited by law from requesting or accepting a certificate of completion signed by the consumer prior to the actual completion of the work to be performed under the contract."

c. Any contract for home improvement, home elevation, or both types of services may be rescinded by the consumer, except as provided in subsection j. of this section, if the consumer:

(1) Furnishes to the contractor a notice of intent to rescind the contract by certified mail, return receipt requested, postmarked not later than 5 p.m. of the third business day following the day on which the contract is executed; and

(2) Gives up possession of any goods, subject to a contract, delivered to the consumer prior to receipt by the contractor of the notice of intent to rescind.

d. Within 10 business days after receipt of a notice of intent to rescind a contract for home improvement, home elevation, or both types of services, a contractor shall:

(1) Pick up, at the contractor’s own expense, any goods subject to the contract, delivered to the consumer prior to receipt by the contractor of the notice;

(2) Refund to the consumer all amounts of money paid by the consumer, less reasonable charges for any damages to any goods which occurred while in the consumer’s possession; and

(3) Redeliver to the consumer any goods traded-in to the contractor on account of or in contemplation of the contract for home improvement, home elevation, or both types of services, less any reasonable charges actually incurred in making the goods ready for sale.

e. Each ¹[contractor] registered business¹ shall maintain a record of the receipt of any consumer’s notice of intent to rescind a contract for at least 18 months after the receipt of a notice of intent to rescind.

f. At the time of executing every contract for home improvement, home elevation, or both types of services subject to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill), the contractor shall deliver to the consumer two copies of a receipt which clearly and conspicuously sets forth:

(1) The contractor's name and place of business;

(2) A description of the goods and services sold; and

(3) The amount of money paid by the consumer or the cash value of any goods delivered to the contractor at the time the contract for home improvement, home elevation, or both types of services was entered into.

g. The receipt required to be delivered to the consumer shall also clearly and conspicuously include, in at least 10-point bold type, the following statement:

“NOTICE TO CONSUMER: YOU MAY RESCIND THIS CONTRACT PROVIDED THAT YOU NOTIFY THE HOME IMPROVEMENT OR HOME ELEVATION CONTRACTOR OF YOUR INTENT TO DO SO BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, POSTMARKED NOT LATER THAN 5 P.M. OF THE THIRD BUSINESS DAY FOLLOWING THE SALE. FAILURE TO EXERCISE THIS OPTION, HOWEVER, WILL NOT INTERFERE WITH ANY OTHER REMEDIES AGAINST THE CONTRACTOR YOU MAY POSSESS. IF YOU WISH YOU MAY USE THIS PAGE AS NOTIFICATION BY WRITING “I HEREBY RESCIND” AND ADDING YOUR NAME AND ADDRESS. A DUPLICATE OF THIS RECEIPT IS PROVIDED BY THE CONTRACTOR FOR YOUR RECORDS.”

h. Except as provided in subsection j. of this section, a receipt required to be delivered by the consumer shall not contain, or be accompanied by, any document which contains provisions by which the consumer waives any rights under P.L. , c. (C. ) (pending before the Legislature as this bill).

i. A ¹[contractor who] business that¹ in the ordinary course of business regularly uses a language other than English in any advertising or other solicitation of consumers, or in any printed forms for use by consumers, or in any face-to-face negotiations with consumers, shall deliver two copies of the receipt to a consumer whose principal language is not English, one in English and one in the other language.

j. A contract for home improvement, home elevation, or both types of services for work needed by the consumer to meet a bona fide emergency, where the contact with the ¹[contractor] registered business¹ was initiated by the consumer, shall not be subject to the cancellation provisions of subsection c. of this section, if the consumer furnishes the ¹[contractor] registered business¹ with a statement separate from the contract, in a form approved by the board, dated and signed by the consumer, describing the situation requiring immediate remedy and expressly acknowledging and waiving the right to cancel the contract within three business days.

k. No ¹[contractor] registered business¹ shall request or accept a certificate of completion signed by the consumer prior to the actual completion of the work to be performed under a contract for home improvement, home elevation, or both types of services.

¹l. Any contract for home improvement or home elevation services ²valued at a minimum of $120,000 and requiring the submittal of plans with more than one subcode² shall include, in a clear and conspicuous manner, ²[that pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), a] the name of the² principal home improvement contractor or principal home elevation contractor ²[shall oversee the performance of home improvement or home elevation services if the services to be performed are valued at a minimum of $120,000 and require the submittal of plans with more than one subcode¹] assigned to oversee the performance of services.²]⁴

⁴[22. (New section) A county or municipal office of consumer affairs established pursuant to P.L.1975, c.376 (C.40:23-6.47 et seq.), that enters into a written agreement with the board in the form specified by the board to accept consumer complaints, directly or on a referral basis, and enforce P.L. , c. (C. ) (pending before the Legislature as this bill) against contractors ¹or registered businesses¹ whose principal place of business is in the county or municipality, shall be entitled to a share of fees paid by contractors ¹or registered businesses¹ having their principal place of business in the county or municipality as determined by the board by regulation, which cost shall be reflected in the licensing ¹and registration¹ fees established by the board.]⁴

⁴[23.] 17.⁴ (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 ¹[the direct supervision of]¹ 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 ⁴[16] 12⁴ 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 ¹[place of employment] ⁴[registered business¹ of] contractor business registered pursuant to P.L.2004, c.16 (C.56:8-136 et seq.) that employs⁴ the contractor maintains cargo or other insurance covering home elevation services as required pursuant to section ⁴[8 of P.L. , c. (C. ) (pending before the Legislature as this bill)] 7 of P.L.2004, c.16 (C.56:8-142)⁴.

b. The board may charge applicable fees to convert a license from home improvement to home elevation.

⁴c. The board shall establish the standards and requirements necessary for a limited specialty services licensee to obtain a home improvement or home elevation license.⁴

⁴[24.] 18.⁴ 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)

⁴[25.] 19.⁴ 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)

¹[26. Sections 3 through 6 and sections 24 and 25 shall be effective immediately, but remain inoperative until the Governor appoints board members, by the first day of the tenth month next following enactment, for the purposes of promulgating rules and regulations pursuant to the “Administrative Procedures Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act. Sections 1, 2, and 7 through 23 shall be effective on the first day of the twenty-fifth month next following enactment. The director may take such anticipatory administrative action in advance thereof as shall be necessary for implementation of this act.]¹

⁴[¹26.] 20.⁴ (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 ⁴[sections 26 through 30] section 20⁴ 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 ²or jurisdictions of the United States² 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 ²or jurisdiction of the United States² 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. ²Licensees approved by the board to instruct an approved continuing education course shall receive twice the credit conferred upon those licensees attending the course.² 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 ²double the² continuingeducation credit ²[towards] for that course only² once ²to satisfy part of² the continuing education requirement for the renewal of their license.¹

⁴[¹27.] 21.⁴ (New section) ²a.²Continuing education courses may be delivered in a classroom setting or², to the extent practicable,²offered 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.¹

²b. A licensee may fulfill all continuing education requirements in-person, via the Internet or video modalities, or through a combination of these options.²

⁴[¹28.]22.⁴ (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 ⁴[26] 20⁴ of P.L. , c. (C. ) (pending before the Legislature as this bill).¹

⁴[¹29.] 23.⁴ (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.¹

⁴[¹30.] 24.⁴ (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.¹

³[¹31. Sections 3 through 6 and sections 24 and 25 of this act shall be effective immediately, but remain inoperative until the Governor appoints board members, by the first day of the tenth month next following enactment, for the purposes of promulgating rules and regulations pursuant to the “Administrative Procedures Act,” P.L.1968, c.410 (C.52:14B-1 et seq.) to effectuate the purposes of this act. Sections 1, 2, 7 through 23, and 26 through 30 of this act shall be effective on the first day of the 25th month next following the appointment of ²a majority of² the board. The director may take such anticipatory administrative action in advance thereof as shall be necessary for implementation of this act.¹]³

⁴[³31. Sections 3 through 6 and sections 24 and 25 of this act shall be effective immediately, but sections 3, 4 and 6 shall remain inoperative until such time as provided in section 5. Sections 1, 2, 7 through 23, and 26 through 30 shall be effective on the first day of the 25th 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.³]⁴

⁴25. 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."⁴

(cf: P.L.2004, c.16, s.1)

⁴26. 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 noncommercial] 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.⁴

(cf: P.L.2014, c.34, s.3)

⁴27. 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.⁴

(cf: P.L.2004, c.155, s.1)

⁴28. Section 1 of P.L.2013, c.144 (C.56:8-138.1) is repealed.⁴

⁴29. 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 business, 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.⁴

(cf: P.L.2014, c.34, s.1)

⁴30. 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.⁴

(cf: P.L.2004, c.155, s.2)

⁴31. 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.⁴

(cf: P.L.2004, c.16, s.6)

⁴32. 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 compliancebond, 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. Everybond, 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 businessfrom 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.⁴

(cf: P.L.2014, c.34, s.4)

⁴33. 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.⁴

(cf: P.L.2004, c.16, s.11)

⁴34. 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.⁴

(cf: P.L.2021, c.482, s.2)

⁴35. Section 12 of P.L.2004, c.16 (C.56:8-147) is repealed.⁴

⁴36. 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.⁴

(cf: P.L.2004, c.16, s.13)

⁴37. 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.⁴

(cf: P.L.2004, c.16, s.14)

⁴38. 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.⁴

(cf: P.L.2004, c.16, s.15)

⁴39. 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."⁴

(cf: P.L.2004, c.155, s.4)

⁴40. (New section) 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 25th 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.⁴