ASSEMBLY, No. 3448
STATE OF NEW JERSEY
211th LEGISLATURE
INTRODUCED OCTOBER 25, 2004
Sponsored by:
Assemblyman STEVE CORODEMUS
District 11 (Monmouth)
SYNOPSIS
"Swimming Pool Installation Contractors Registration Act."
CURRENT VERSION OF TEXT
As introduced.
An Act concerning swimming pool installation contractors and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. This act shall be known and may be cited as the "Swimming Pool Installation Contractors Act."
2. As used in this act:
"Contractor" means a person engaged in the business of installing in-ground swimming pools and includes a corporation, partnership, association and any other form of business organization or entity, and its officers, representatives, agents and employees.
"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.
“Swimming pool installation contract” means a written agreement for the installation of an in-ground swimming pool between a contractor 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 the installation of an in-ground swimming pool, or furnish materials in connection therewith.
3. a. No person shall offer to perform, or engage, or attempt to engage in the business of installing in-ground swimming pools unless registered with the division in accordance with the provisions of this act.
b. Every contractor 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.
c. Every contractor required to register under this act 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.
4. 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 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 to the activity regulated by this act. 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 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 or registrant 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 his 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.
5. Every registered contractor who is engaged in the installation of in-ground swimming pools 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.
6. The director may issue a new registration, notwithstanding the revocation of a prior registration, if the applicant is found to have become entitled to the new registration.
7. All registrants shall prominently display their registration numbers within their places of business, in all printed advertisements distributed within this State, on business documents, contracts and correspondence with consumers of swimming pool installations in this State, and on all commercial vehicles registered in this State and leased or owned by registrants and used by registrants for the purpose of installing in-ground swimming pools.
8. a. The provisions of this act shall apply to any person engaging in any of the activities regulated by this act in this State, including persons whose residence or principal place of business is located outside of this State.
b. A person shall not bring or maintain an action in any court of this State for the collection of a fee, charge or commission for the performance of any of the activities regulated by this act without alleging and proving valid registration at the time the alleged cause of action arose.
9. a. Every swimming pool installation contract, 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 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:
(2) A copy of the certificate of commercial general liability insurance required of a contractor pursuant to section 5 of this act and the telephone number of the insurance company issuing the certificate; (3) The total price or other consideration to be paid by the purchaser, including the finance charges, and, if applicable, any schedule of payments to the contractor, subcontractor, or other third party;
(4) A description of component costs for installation of in-ground swimming pools, including, but not limited to, engineering requirements, retainer walls, landscaping, construction and permanent fencing, safety locks, pool covers and restoration of premises to its original condition, and a detailed description of the work to be performed by the contractor under the contract;
(5) The date of execution of the contract, the estimated date of completion of all work to be done under the contract, and, if applicable, a penalty schedule for any late completion of work;
(6) A plan and scale drawing showing the shape, size and dimensions, in square feet, of the in-ground swimming pool perimeter and pool surface area, and any brochures, pictures or other drawings provided to the purchaser describing the pool;
(7) Disclosure, if applicable, that some or all of the work under contract is to be subcontracted or undertaken by other third parties, and a detailed description of the work to be performed by a subcontractor or other third party, including, but not limited to, excavation, assembly, electrical, plumbing or heating or landscaping;
(8) Disclosure, if applicable, of warranties to be provided under the contract by the contractor, subcontractor, or other third party;
(9) Disclosure of any permit fees for installation of the in-ground swimming pool, a description of cost-allocation of these permit fees to the purchaser, contractor, subcontractor or other third party, and a description of delegation of responsibilities among the purchaser, contractor, subcontractor, or any other third party for obtaining each of these permits;
(10) Disclosure of minimum depth for placement of pipes in construction of the in-ground swimming pool; and
(11) Disclosure of any anticipated interruption of service for purchaser in use of any sprinkler system.
b. A swimming pool installation 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 the contract. In order to cancel a contract the consumer shall notify the contractor of the cancellation in writing, by registered or certified mail, return receipt requested, or by personal delivery, to the address specified in the contract. 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)
(Address of Contractor)
(Phone Number of Contractor)."
c. A contractor shall not accept a down payment or any other form of payment on a contract until the expiration of the three-day period established in accordance with the provisions of subsection b. of this section.
10. 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.
11. The director, pursuant to the provisions of the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall promulgate rules and regulations to effectuate the purposes of this act.
12. This act shall take effect on the first day of the sixth month following enactment.
STATEMENT
This bill, designated the "Swimming Pool Installation Contractors Registration Act," requires every contractor engaged in the business of installing in-ground swimming pools to annually register with the Director of the Division of Consumer Affairs in the Department of Law and Public Safety before doing business in this State.
The bill authorizes the Director of the Division of Consumer Affairs to refuse to issue or renew, or to suspend or revoke, the registration of any person who violates its provisions.
The bill requires every registered contractor who is engaged in the installation of swimming pools to secure and maintain commercial general liability insurance in a minimum amount of $500,000 per occurrence. The bill requires all swimming pool installation contracts, and amendments thereto, to be in writing and to be in clear and understandable language. The bill requires that these contracts include: the legal name, business address, and registration number of the contractor; a copy of the certificate of commercial general liability insurance required of a contractor and the telephone number of the insurance company issuing the certificate; the total price to be paid by the purchaser, including the finance charges, and if applicable, any schedule of payments to the contractor, subcontractor, or other third party; a description of component costs for installation of in-ground swimming pools and a detailed description of the work to be performed by the contractor under the contract; the date of execution of the contract, the estimated date of completion of all work to be done under the contract, and, if applicable, a penalty schedule for any late completion of work; a plan and scale drawing showing the shape, size and dimensions, in square feet, of the in-ground swimming pool perimeter and pool surface area, and any brochures, pictures or other drawings provided to the purchaser describing the pool; disclosure, if applicable, that some or all of the work under contract is to be subcontracted or undertaken by other third parties, and a detailed description of the work to be performed by a subcontractor or other third party, including, but not limited to, excavation, assembly, electrical, plumbing or heating, or landscaping; disclosure, if applicable, of warranties to be provided under the contract by the contractor, subcontractor, or other third party; disclosure of any permit fees for installation of the in-ground swimming pool, a description of cost-allocation of these permit fees to the purchaser, contractor, subcontractor or other third party, and a description of delegation of responsibilities among the purchaser, contractor, subcontractor, or any other third party for obtaining each of these permits; disclosure of minimum depth for placement of pipes in construction of the in-ground swimming pool; and disclosure of any anticipated interruption of service for purchaser in use of any sprinkler system.
The bill permits a consumer to cancel a swimming pool installation contract for any reason at any time before midnight of the third business day after the consumer receives a copy of the contract. The bill requires that the contract contain a conspicuous notice informing the consumer of the right to cancel the contract within three business days of signing without penalty.
The bill makes violators subject to the provisions of the consumer fraud law, P.L.1960, c.39 (C.56:8-1 et seq.). These penalties may include a fine of no more than $10,000 for a first offense and no more than $20,000 for any subsequent offense. The Attorney General is authorized to seek and obtain in a summary action an injunction prohibiting any violator from continuing to engage in the unlawful practice. In addition, all the rights, remedies and penalties available under or applicable to violations of the consumer fraud law apply to violations of the bill. Primary among these remedies, a consumer may bring an individual cause of action and seek treble damages.