ASSEMBLY BUDGET COMMITTEE
STATEMENT TO
[Second Reprint]
ASSEMBLY, No. 3899
STATE OF NEW JERSEY
DATED: JUNE 28, 2026
The Assembly Budget Committee reports favorably Assembly Bill No. 3899 (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 of contractors and registration of general contracting businesses. “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; issue, 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 either 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 the Certified Professional Constructor examination and a supplemental examination developed 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 and a link to the study guide created by the American Institute of Constructors for the Certified Professional Constructor examination is to be posted on the board’s website.
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 five 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 by 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 holder of the license is to have the license readily available at the work site where general contracting services are being performed and an individual providing general contracting services under the direction or supervision of the holder is to have a copy of the license readily available. No person is to practice, attempt to practice, or indicate an ability to practice general contracting if the person does not hold a license in general contracting or provide the contracting services under the direction or supervision of a licensed general contractor.
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. A general contractor business that constructs, repairs, or maintains transportation infrastructure, including, but not limited to, roads, highways, bridges, tunnels, transit systems, and related transportation infrastructure, is not required to register with the division as a general contractor business under the bill.
Nothing in the bill is to be construed to permit a general contractor business registered with the division in accordance with the bill’s provisions to bid on any contract for public work without first registering with the Department of Labor and Workforce Development as a public works contractor.
FISCAL IMPACT:
The Office of Legislative Services (OLS) 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 and general contractor businesses, including the cost of establishing and operating the new nine-member board, establishing and administering biannual exams, and performing other administrative responsibilities under the bill.
An indeterminate amount of additional annual State revenue will accrue from fee payments for the new general contractor licenses (valid for three years) and general contractor business registrations (valid for one year), 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 that licensure fees 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.