Bill
S 3275
New Jersey requires annual registration for mold inspectors/remediators, plus minimum $500,000 CGL insurance for many; cannot perform inspection and remediation on the same site.
Title: Establishes registration requirement for mold inspection and remediation contractors
Jurisdiction: New Jersey
Purpose and Intent
- Establish a mandatory registration framework for individuals and businesses engaged in mold inspection, mold remediation, or mold abatement work.
- Create accountability and consumer protection by ensuring registered contractors meet insurance and regulatory requirements, and by imposing penalties for violations.
Key Provisions and Changes
1) New Registration Requirement
- Effective: Registration is required for anyone performing mold inspection or mold remediation/abatement work.
- Registration entity: Applicants must register with the Director of the Division of Consumer Affairs.
- Annual registration: Contractors must renew registration each year.
- Application and fees: Applications must be on a form provided by the Director and accompanied by a reasonable annual fee set by the Director (to cover enforcement and administration costs).
- Amendment of information: Registrants must file amended registration within 20 days of any change to required information (no fee for amendments).
2) Insurance Requirement
- For registered contractors who are not already required to carry commercial general liability (CGL) insurance under existing law, the bill requires CGL insurance with a minimum coverage of $500,000 per occurrence.
- If a registered contractor’s CGL policy is canceled or nonrenewed, they must submit a new or replacement certificate meeting the minimum coverage before the old policy lapses.
3) Scope and Prohibitions
- A registered contractor cannot perform a mold inspection and mold remediation/abatement on the same premises (must be separate activities at different locations or different times).
- Violations relating to the registration and insurance requirements trigger penalties and potential suspension or revocation of registration.
4) Penalties and Enforcement
- First offense for performing mold inspection and remediation on the same premises: civil penalty up to $5,000; subsequent offense can lead to revocation of registration.
- Other violations of the bill’s provisions: civil penalties up to $5,000 for a first offense and up to $10,000 for subsequent offenses.
- False statements: civil penalty of at least $10,000 and up to $25,000.
- Additional actions: Director may suspend or revoke registration for violations.
- Civil penalties are enforceable under the Summary Penalty Enforcement Law.
5) Administrative Rules and Effective Date
- The Director may adopt rules and regulations under the Administrative Procedure Act to implement the registration framework, including fee structures.
- The Division may implement temporary regulations immediately upon filing with the Office of Administrative Law, valid for up to 270 days, with subsequent formal rulemaking.
- Effective date: The act takes effect 60 days after enactment.
Definitions (selected)
- Mold: Various indoor molds including Cladosporium, Penicillium, Aspergillus, Stachybotrys, etc.
- Mold inspection: Inspection and evaluation for mold presence.
- Mold remediation/abatement: Work to clean, remove, or contain mold hazards, including related repairs and prevention of water intrusion.
- Mold inspection and remediation contractor: Person engaged in either mold inspection or remediation, or both.
Who Is Affected
- Individuals and entities performing mold inspection, mold remediation, or abatement work in New Jersey.
- Existing mold-related service providers who must obtain and maintain annual registration and, if applicable, CGL insurance.
- Businesses that may employ or contract with mold inspectors/remediators, given the prohibition on simultaneous inspection and remediation at the same premises.
Procedural/Timeline Highlights
- Registration annually required; amendments within 20 days of information changes.
- Insurance compliance required for those not already mandated to hold CGL coverage.
- Immediate rulemaking authority granted to the Director; temporary rules may be adopted for up to 270 days.
- 60-day effective period post-enactment.
Notes for Readers
- The bill builds on age-old consumer protection approaches by aligning mold services with professional registration and insurance requirements.
- It introduces potential cost implications for contractors (registration fees and CGL insurance) and changes to practice workflows (separation of inspection and remediation tasks at a single property).
Compiled from official sources — confirm details with the bill’s official record.
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