By Joseph R. Haftek, Jr. and Thomas N. Gamarello

The New Jersey State Assembly recently passed bill A2138, which will require new home improvement and home elevation contractors to obtain licenses before they can perform home improvement or home elevation work in the Garden State.  The proposed law, which is awaiting Senate approval before it is sent to the governor’s desk for signature, will require new applicants to pass an examination, prove financial stability and compliance with insurance regulations, demonstrate completion of an approved apprenticeship program or at least two years of home improvement or home elevation experience, among other education and compliance requirements. All applicants will also be required to submit a sworn disclosure statement, stating whether the applicant has ever been convicted of a crime.

The legislation will also create the New Jersey State Board of Home Improvement and Home Elevation Contractors to administer and enforce the provisions of the new legislation.  The nine-member Board will consist of five licensed home improvement contractors, one licensed home elevation contractor, two members of the public appointed by the governor upon the respective recommendations of the Assembly Speaker and Senate President, and one other member appointed by the governor.  The Board will also establish of a code of ethics and standards, create new education and compliance requirements, etc., in order to be eligible for a license. These licenses would need to be renewed every two years.

The Board will also have the discretion to suspend or revoke licenses upon review of several factors, including proof of the applicant’s gross negligence or gross malpractice, repeated acts of negligence, malpractice or incompetence, use of fraud, deception or misrepresentation, convictions of any crime or offense, and other factors.  The legislation also creates the process for formal hearings and appeals.

Existing home improvement or home elevation contractors in New Jersey with at least ten years of experience will be exempt from this new legislation. Upon expiration of their existing contractor registrations, they will be issued a license.  Additionally, certain individuals, including those regulated by the State already, such as architects, engineers, electricians and surveyors, will also be exempt. 

The new legislation will also require every contractor to wear an identification badge on the upper left corner of the torso, containing the contractor’s picture, name, license number and the name of the contractor’s business.  Among other requirements, licensed contractors will also be required to display their license numbers in their places of business, all advertisements, on business documents (such as contracts and correspondences) and on all commercial vehicles.  Municipalities will also be instructed not to issue construction permits for any home improvement or home elevation work unless the individual is licensed pursuant to this new legislation.

The Construction Law practice group at Schenck, Price, Smith & King, LLP are available to answer any questions you may have about this potentially new legislation.

For more information, contact Joseph R. Haftek, Jr. at JRH@spsk.com or 973-540-7337 and Thomas N. Gamarello at TNG@spsk.com or 973-540-7342. 

DISCLAIMER: This Alert is designed to keep you aware of recent developments in the law. It is not intended to be legal advice, which can only be given after the attorney understands the facts of a particular matter and the goals of the client.