ASSEMBLY STATE AND LOCAL GOVERNMENT COMMITTEE
STATEMENT TO
ASSEMBLY, No. 1457
with committee amendments
STATE OF NEW JERSEY
DATED: NOVEMBER 14, 2024
The Assembly State and Local Government Committee reports favorably and with committee amendments Assembly Bill No. 1457.
As amended, this bill establishes the New Jersey State Board of General Contractors to regulate the general contracting profession by requiring licensure by the board. “General contractor” is defined in the bill to mean an individual or business that is to be or can be classified in trade 006, 007, 008, or 009 by the Division of Property Management and Construction in the New Jersey Department of the Treasury. The board would consist of nine members, six of whom are required to have been practicing general contracting in the State for at least 10 years. The board is to: establish the standards required for licensure; review the qualifications of individuals who apply for licensure; ensure the proper conduct and standards of examination; renew, suspend, or revoke licenses; prescribe or change fees for examination or licensure; and maintain a record of all licensed general contractors. No person may hold themselves out as a general contractor without being licensed.
Under the bill, to be eligible as a general contractor, a person is required to: (1) be at least 18 years of age; (2) have completed a program accredited by a regional accreditation agency recognized by the United States Department of Education leading to a degree in construction or project management or an apprenticeship program in a building or construction trade accredited and approved by the United States Department of Labor, the New Jersey Department of Labor and Workforce Development, or affiliated unions; (3) possess certain field experience; and (4) have successfully passed an examination in general contracting prepared by or approved by the board. The examination is to be held in the State at least two times a year at a time and place determined by the board. The board may also arrange for reasonably required physical accommodations and facilities to conduct examinations. The board is also permitted to establish standards and procedures to provide that the examination be offered via the Internet. Additionally, a study guide for the examination is to be created by the board.
Individuals who have at least 10 years of experience performing general contracting services prior to the effective date of this bill and who, during that time, have not declared bankruptcy or altered the name of a business to deceive other parties regarding an interest in or ownership of a previous business, are exempt from these education and examination requirements, as are individuals with a license, certification, or registration issued by the State in a closely allied profession, which includes commercial general contracting. Additionally, individuals who can demonstrate, in a manner as determined by the board, completion of three years of field experience prior to the effective date of the bill and that was performed under the supervision of a general contractor with at least 10 years of experience completed prior to the effective date of the bill will also qualify for licensure upon passage of the examination required of the bill.
Licenses issued by the board are to be renewed every three years. Fees for licensure are to be determined by the board and established by regulation. The board is required to promulgate rules and regulations for implementing continuing education requirements as a condition of licensure renewal, which are to include the subject matter and content of courses of study. Once a license is issued, the licensee is to have the license readily available at the work site where general contracting services are being performed.
COMMITTEE AMENDMENTS
The committee amended the bill to:
1) update the definition of “general contractor”;
2) modify requirements for licensure regarding the education and experience to complete;
3) require creation by the New Jersey State Board of General Contractors of a study guide for the examination for licensure;
4) alter the licensure renewal period to three years;
5) modify what are considered to be closely-allied professions to general contracting;
6) stipulate that a party is exempt from licensure if, in part, they have not altered the name of a business to deceive other parties regarding an interest in or ownership of a previous business in the previous 10 years before the effective date of the bill;
7) allow individuals who can demonstrate that they completed certain field experience before the effective date of the bill to qualify for licensure if they pass the licensure examination required in the bill;
8) extend the effective date; and
9) make technical updates.