NEWARK — Attorney General Peter C. Harvey and New Jersey Division of Consumer Affairs Acting Director Kimberly Ricketts are urging home improvement contractors who have not already filed their applications for registration to do so by September 1.

The Contractors’ Registration Act, which takes effect on December 31, 2005, requires those who sell or make home improvements to register with Consumer Affairs. The volume of applications received after September 1 could determine whether applications are processed by the December 31 deadline.

The application, along with a list of "Frequently Asked Questions" and an instruction sheet on how to complete the application, may be obtained by logging onto www.njconsumeraffairs.com/contractor.htm, calling toll-free 888-656-6225, or visiting Consumer Affairs’ offices at 124 Halsey St., Newark, or 2 Riverside Drive, Suite 403, Camden. Each application must be accompanied by a registration payment of $90, a copy of the contractor’s certificate of liability insurance as well as other documents.

Contractors who fail to register by Jan. 1, 2006 will be prohibited from making or selling home improvements in New Jersey and barred from obtaining local construction permits until they become registered. In addition, they will face civil monetary penalties as well as possible criminal charges if they continue to do home improvements while unregistered.

"The message to contractors is simple: don’t wait to register or you will lose contracts and money. This law is designed to protect consumers from unscrupulous, fly-by-night home improvement contractors who take homeowners’ money and run off without doing the job they promised to do," Attorney General Harvey said. "This law will help both homeowners and legitimate contractors."

"Although the deadline to register is months away, it is important to get applications in now,"Acting Director Ricketts said. "We also encourage all applicants to obtain and review a copy of the instructions to ensure that the applications are filled out properly and are complete.

"Any contractor whose application is missing required documents will receive a letter from Consumer Affairs notifying him or her of the deficiency," Acting Director Ricketts added, noting that of the 14,628 registration applications received to date, as many as 65 percent were deficient. "Incomplete applications will be placed on hold until we receive the missing information."

The Contractors’ Registration Act includes the following provisions:

• Gives consumers three days to cancel a home improvement contract. The consumer must give the contractor written notice of cancellation. Contractors must refund to the consumer any money paid within 30 days of receiving the written notice of cancellation.
  
• Requires home improvement contractors — those who engage in the business of making or selling home improvements including remodeling, altering, painting, renovating, repairing, restoring, modernizing, moving and/or demolishing — to register annually with Consumer Affairs, unless they are exempted from the registration requirements. Anyone who is not registered and not exempted will be barred from working in New Jersey as a home improvement contractor.
  
• Bars municipalities from issuing construction permits to contractors who are not registered or exempted from the registration requirements.
  
• Requires contractors to file proof that they have secured and maintain general liability insurance in a minimum of $500,000 per occurrence.
  
• Provides that anyone who knowingly violates the Act is guilty of a crime of the fourth degree. In addition, anyone who violates the Act is also subject to civil monetary penalties under the Consumer Fraud Act of up to $10,000 for the first offense and up to $20,000 for each subsequent offense.
  
• Requires a written contract when the improvement work exceeds $500. The contract must detail all terms and conditions, including among other things the legal name, business address and registration number of the contractor; a copy of the certificate of commercial general liability insurance; and the total price or other consideration to be paid by the consumers, including finance charges.
  
• Requires each contractor to post his or her registration number on all New Jersey advertisements, contracts and correspondence with customers and all commercial vehicles registered in New Jersey and leased or owned by the registrant.

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