ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

[Second Reprint]

ASSEMBLY, No. 1457

STATE OF NEW JERSEY

DATED:  JANUARY 8, 2026

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 1457 (2R).

      As reported, 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 indicate an ability to practice general contracting without being licensed or working under the direction or supervision of a general contractor licensed by the board. 

      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 the American Institute of Constructors and a supplemental examination on applicable State general contracting law prepared by the board in consultation with the American Institute of Constructors.  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 supplemental 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 in 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.

      The bill also requires a general contractor business to annually register with the Division of Consumer Affairs and establishes a process for registration.  A general contractor business is required by the bill to employ at least one general contractor licensed by the board and disclose the identity of the licensed general contractor employed by the business in a form and manner prescribed by the board.  If the sole licensed general contractor employed by a registered general contractor business is rendered incapable of fulfilling professional duties, the general contractor business is required to notify the board and employ a licensed general contractor within six months.

FISCAL IMPACT:

      The Office of Legislative Services finds that the establishment of the New Jersey State Board of General Contractors will result in indeterminate annual expenditures for the State associated with the licensure and regulation of general contractors, including the cost of establishing and operating the new nine-member board, establishing and administering biannual exams, and establishing and overseeing an annual registration process.

      An indeterminate amount of additional annual State revenue will accrue from fee payments for the new general contractor licenses and the new annual registrations, as well as from indeterminate fines and penalty payments from violators of statutory and regulatory requirements applicable to the newly licensed profession.  The bill requires the licensure and renewal fees to remain flexible to ensure that expenditures related to licensure and oversight are sufficient to pay the board’s expenses, yet do not generate excess revenues.