S4555

An Act concerning contractors engaged in home improvements, and amending and supplementing P.L.2004, c.16.

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

1. Section 2 of P.L.2004, c.16 (C.56:8-137) is amended to read as follows:

2. As used in P.L.2004, c.16 (C.56:8-136 et seq.):

"Board" means the New Jersey State Board of Home Improvement and Home Elevation Contractors.

"Bona fide emergency" means any condition existing on the consumer's residential or non-commercial property or its existing home improvements, which renders, or has the capability to render, the residential or non-commercial property or its existing home improvements uninhabitable or unusable, or causes harm or damage, or has the capability to cause harm or damage, to the residential or non-commercial property or its existing home improvements, and includes, but shall not be limited to, conditions significantly affecting the heating or cooling system, electrical system, plumbing system, ventilation system, roof or outer walls of the residential or non-commercial property.

"Contractor" means an individual providing home improvement or home elevation services, or both types of services, for a corporation, partnership, association, sole proprietorship, and any other form of business organization or entity that enters into contracts for home improvement, home elevation, or both types of services.

"Contractor business" means a business that is a corporation, partnership, association, sole proprietorship or any other form of business organization or entity that provides home improvement, home elevation, or both types of services with at least one employee who is a licensed contractor, as defined pursuant to this section. An individual who provides services included in the definition of "home improvement" and who earns a maximum of $1,500 per contract and $25,000 on an annual basis for those services shall be required to maintain registration and comply with registration requirements pursuant to section 3 of P.L.2004, c.16 (C.56:8-138), but shall not be required to have at least one employee who is a licensed contractor.

"Director" means the Director of the Division of Consumer Affairs in the Department of Law and Public Safety.

"Division" means the Division of Consumer Affairs in the Department of Law and Public Safety.

"Home elevation" means any home improvement that involves raising an entire residential structure to a higher level above the ground.

"Home elevation contractor" means a contractor who engages in the practice of home elevation and is authorized to perform home improvement services.

"Home improvement" means the remodeling, altering, renovating, repairing, restoring, modernizing, moving, demolishing, or otherwise improving or modifying of the whole or any part of any residential property. Home improvement shall also include insulation, installation, and the conversion of existing commercial structures into residential property. Home improvement shall not include the construction of a new residential property.

"Home improvement contract" means a written agreement, or oral agreement if the cost of services is expected to be $500 or less, for the performance of a home improvement between a home improvement or home elevation contractor business and an owner, tenant or lessee, of a residential property, and includes all agreements under which the contractor is to perform labor or render services for home improvements or for home elevations, or furnish materials in connection therewith.

"Limited specialty services license" means a license issued by the board that authorizes an individual only to perform services in a specialty of home improvement the scope of which shall be determined by the board.

"Limited specialty services licensee" means an individual licensed by the board to provide limited specialty home improvement services.

"Principal home improvement contractor" or "principal home elevation contractor" means a licensed home improvement or home elevation contractor who oversees the performance of services for contracts (1) valued at a minimum of $120,000 and (2) that require the submittal of plans with more than one subcode. A principal home improvement or principal home elevation contractor may also provide services as a home improvement contractor or home elevation contractor if a contract is valued at less than $120,000 or does not require submittal of plans with more than one subcode.

"Residential property" means any single or multi-unit structure used in whole or in part as a place of residence, and all structures appurtenant thereto, and any portion of the lot or site on which the structure is situated which is devoted to the residential use of the structure.

(cf: P.L.2023, c.237, s.26)

2. (New section) a. Notwithstanding the provisions of subsection b. of section 16 of P.L.2004, c.16 (C.56:8-151) to the contrary, a consumer may waive the consumer’s right to cancel a home improvement contract with a contractor to address a bona fide emergency by executing an emergency authorization form. To obtain a waiver under this section, the contractor shall furnish the consumer with an emergency authorization form, as well as a written estimate of the total costs for the performance of work, including any fees for service calls. This authorization shall permit the contractor to proceed immediately to remedy the bona fide emergency. If the costs of the performance of the work exceeds the estimate provided, the contractor shall obtain further written authorization from the consumer to perform any additional work.

b. Nothing in this section shall prohibit a contractor contacted by a consumer as a result of a bona fide emergency from taking any preliminary steps necessary to remedy a clear and immediate danger that may cause death or serious bodily injury to the parties of the contract or other persons without having to obtain the emergency authorization form.

3. (New section) The director shall adopt, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations necessary to implement this act.

4. This act shall take effect immediately.

STATEMENT

This bill provides an exemption from the three-day cancellation provision of a home improvement contract in the case of a bona fide emergency.

Under current law, a consumer may cancel a home improvement contract for any reason at any time before midnight of the third business day after the consumer receives a copy of the contract. This bill authorizes a consumer to waive the consumer’s right to cancel a home improvement contract with a contractor to address a bona fide emergency by executing an emergency authorization form. To exercise this option, the contractor must furnish the consumer with an emergency authorization form and written estimate of the total costs and fees for the work and service provided. In cases where the costs exceed the estimate, the bill requires the contractor to obtain further written authorization to perform any additional work.

The bill also specifies that a contractor may take preliminary steps necessary to remedy a clear and immediate danger without obtaining the emergency authorization form, and defines what constitutes a “bona fide emergency.”