Bill
A 3762
New Jersey requires private contractors and subs for private construction to register, meet standards, and disclose finances and history to work in the state.
Bordering aim
- Establishes the New Jersey Private Contractor Registration Act to regulate private construction work by requiring private contractors and their subcontractors to register with the state and meet certain criteria.
What the bill does (main purpose)
- Prohibits private contractors and subcontractors from engaging in private construction work in New Jersey unless they are registered under this act.
- Requires registration to ensure contractors meet licensing, financial, and compliance standards, and to provide transparency about ownership, finances, and past compliance.
Key definitions (scope and terms)
- Private construction work: All building or work on a building, structure, or improvement done within New Jersey under a contract with another entity or person, excluding public works and home improvement.
- Private contractor: Any entity (individual, firm, partnership, corporation, etc.) performing private construction work in New Jersey (including subcontractors at any tier), excluding public works and home improvement contractors.
- Worker: Laborers, mechanics, skilled/semi-skilled workers, and apprentices employed by a private contractor or subcontractor on private construction work (excludes material suppliers’ employees at the site).
- Public works and home improvement are excluded from the definition of private construction work.
Who must register and what is required (key provisions)
- Registration requirement:
- A private contractor or subcontractor cannot engage in private construction work unless registered.
- A private contractor cannot hire a subcontractor who is not registered.
- Contractors already registered under The Public Works Contractor Registration Act are exempt from this act’s registration and fee requirements.
- Registration content (written with the Department of Labor and Workforce Development, through the Commissioner, on forms):
1) Name, principal business address, and phone number.
2) Form of business (corporation, partnership, sole proprietorship, etc.).
3) If principal address is outside New Jersey, the custodian of records and in-state agent for service of process.
4) Names and addresses of persons with financial interest and their ownership percentages (officers’ names/addresses if publicly traded).
5) Tax identification number and unemployment insurance registration number.
6) Certification and documentation that the contractor holds all valid licenses/registrations required by state law (including NJ-specific registrations).
7) Disclosure of any actions in any jurisdiction that would violate this act.
8) Disclosure of any administrative determinations, awards, or civil judgments for violations of specified federal/state labor laws or executive orders (long list of laws and orders included).
9) Disclosure of any criminal offenses related to activities regulated by this act or involving fraud, dishonesty, or fitness concerns (includes pleas and similar dispositions).
10) Any other information the commissioner deems relevant.
- Additional registration requirements:
- At registration and upon request, contractors must provide proof of workers’ compensation insurance.
- All registration and payments must be processed through the state Department’s online system; manual registration/payment allowed only in exceptional cases.
- Fees:
- Initial registration fee: $250 (non-refundable).
- After a successful initial two-year period: annual two-year renewal with a non-refundable $100 fee.
- Reduced fees may be prescribed by regulation based on annual revenue or non-profit status.
- Fees support enforcement and administration by the Division of Wage and Hour Compliance.
- Registration validity and renewals:
- Registration certificates are valid for two calendar years.
- Renewal must occur not less than 30 days before expiration.
- Public listing:
- The commissioner must create and maintain a public list of all registered private contractors and display it prominently on the department’s website.
- Subcontractor verification:
- Private contractors must provide the in-state hiring entity with the certificate of registration for all subcontractors (registration cannot be substituted by other documents).
Compliance, penalties, and enforcement
- Offenses and penalties:
- Disorderly persons offense for willful hindrance of the commissioner, failure to maintain required records, falsification or inaccessibility of records, failure to provide sworn statements, violations of wage/benefit/tax laws, prior violations in other jurisdictions, criminal offenses related to regulated activities, and other violations of the act.
- Potential enforcement actions (alternative to immediate revocation):
- Deny renewal, revoke, or suspend a contractor’s registration for up to five years.
- Require a private contractor to post a surety bond payable to the State as a condition of registration (bond up to the greater of $10,000 per worker, as determined by the commissioner; issued by a compliant surety).
- Administrative fees and penalties may apply, up to levels in existing wage/contractor law.
- Immediate suspension authority:
- The director may order immediate suspension of a contractor’s registration if in the public interest, with a defined expedited hearing process and rights to contest within the timelines specified.
- If suspension is issued, notification to identifiable general contractors on affected sites is required, giving them 72 hours to remove the suspended contractor. Continued use after notification can subject the general contractor to penalties.
- Interplay with other contractors:
- If the suspended contractor’s work is in progress on a project, the effect of suspension does not automatically suspend other tiers’ registrations, but site notifications and compliance enforcement apply.
Regulatory and effective date
- Regulatory authority: The commissioner may adopt regulations to implement the act.
- Effective date: The act takes effect on the first day of the sixth month after enactment, with possible anticipatory administrative actions to implement it sooner.
Impact and scope
- Impacted parties: Private construction contractors and subcontractors operating in New Jersey, along with their jobsite general contractors and hiring entities.
- Public accountability: Creates a transparent public list of registered contractors and requires disclosure of compliance history, licensing, and potential disciplinary actions.
- Operational considerations: Online registration system; possible fee-based enforcement funding; potential bonding requirements for non-compliant contractors.
Notes for readers
- Exemption: Public works contractors registered under The Public Works Contractor Registration Act are exempt from this act’s registration and fee requirements.
- Coverage: Applies to private construction activity within New Jersey, excluding public works and home improvement work as defined by existing law.
Compiled from official sources — confirm details with the bill’s official record.
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