A551 1R

AN ACT concerning certain ¹[home improvement] consumer¹ contracts ¹[and] ,¹ amending P.L.2004, c.16 ¹and supplementing P.L.1960, c.39 (C.56:8-1 et seq.)¹.

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

¹[1. 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 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, 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 7 of this act 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] the signed contract or, if the consumer is aged 65 or older, for any reason at any time before midnight of the fifth business day after the consumer receives a copy of the signed 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. 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 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 SIGNED CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY

(OR BEFORE MIDNIGHT OF THE FIFTH BUSINESS DAY IF AGED 65 OR OVER) AFTER RECEIVING A COPY OF [THIS] THE SIGNED 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)

If you cancel this contract within the [three-day] appropriate time period, you [are] will be entitled to a full refund of your money. Refunds must be made within 30 days of the contractor's receipt of the cancellation notice."

(cf: P.L.2004, c.155, s.4)]¹

¹1. Section 16 of P.L.2004, c.16 (C.56:8-151) is amended to read as follows:

16. a. 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.2023, c. 237 (C.45:5AAA-1 et al.) 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.2023, c.237 (C.45:5AAA-1 et al.);

(2) A copy of the certificate of commercial general liability insurance required of a contractor business pursuant to section 7 of 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] fifth business day after the consumer receives a copy of [it] the signed contract. 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 SIGNED CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE [THIRD] FIFTH BUSINESS DAYAFTER RECEIVING A COPY OF [THIS] THE SIGNED 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] five-day period, you [are] will be entitled to a full refund of your money. Refunds must be made within 30 days of the contractor business’s receipt of the cancellation notice."

¹c. Nothing herein shall affect the right of a consumer to waive the five-day cancellation period established by this section consistent with applicable law.

d. As used in this section, “consumer” means an individual over the age of 60. The term “consumer” shall also include an individual with an intellectual disability, regardless of age.¹

(cf: P.L.2023, c.237, s.39)

¹2. (New section) a. Every consumer contract entered into after the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill) may be cancelled by a consumer for any reason at any time before midnight of the third business day after the consumer enters into the consumer 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 merchant as 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. Nothing herein shall affect the right of a consumer to waive the three-day cancellation period established by this section consistent with applicable law.

b. As used in this section:

“Consumer” means an individual over the age of 60. The term “consumer” shall also include an individual with an intellectual disability, regardless of age.

“Consumer contract” means a contract, with a three-day cancellation period, for the sale of goods for the price of $500 or more.¹

¹[2] 3.¹ This act shall take effect on the first day of the fourth month next following enactment ¹and shall apply to contracts entered into on or after that date¹.