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Bill
tightens regulation of home-repair contractors
By DAVID
LEVINSKY
Burlington County Times
Homeowners
in New Jersey would get new protection from unscrupulous or
incompetent contractors under a bill awaiting the governor's
signature.
However,
some contractors and repairmen say the law is unnecessary and the
new fees and insurance requirements will drive up costs or force
small operators out of business.
"Any
fee is going to be passed on to consumers," said Richard Day, a
Pemberton Township-based handyman. "This is just one more thing
that will drive up costs so that a homeowner won't have the option
of hiring the guy from down the road."
Supporters
counter the bill would eliminate repairmen who take money and
deliver incomplete or shoddy work. Others favor the measure because
it would rid the state of a hodgepodge of local regulations that now
govern residential repairs.
Consumer
affairs officials said government action is long overdue. There were
348 complaints filed against home-repair contractors in Burlington
County last year, said Renee Borstad, county director of consumer
affairs.
"The
majority of the cases we investigate involve (home contractors) and
it seems to be getting worse," Borstad said. "People don't
know they can call us for a three-year history of any contractor.
We'll tell them if there's been any complaints about them."
The
bill passed the Senate on Monday by a vote of 24 to 11. It would
require all home-improvement contractors to register annually with
the state Division of Consumer Affairs before performing home
repairs or renovations in New Jersey.
To
register, most contractors would need a minimum of $500,000 in
general liability insurance and disclose any serious criminal
convictions. The registration could be revoked or suspended if a
contractor is found guilty of fraud or other serious crime.
State
officials said a registration fee would be charged. The amount has
not yet been determined.
Large
home improvement stores, such as Sears, Home Depot and Lowe's, or
contractors with a net worth more than $50 million, would be exempt
from the insurance requirement. Plumbers and electricians would be
exempt from all requirements under the bill because they already are
regulated by the state.
The
bill would also require written contracts for jobs exceeding $500. A
customer would have three days to cancel the contract for any
reason.
The
Builders League of South Jersey supports the bill because it would
provide a uniform process in all municipalities.
"Currently,
registration (for contractors) is done on a town-by-town basis and
the requirements are different depending on where you're doing
work," said Rich Van Olsten of the Builders League of South
Jersey "This would streamline things and make it easier for
them to work across South Jersey or the state."
According
to Borstad, the municipalities of Medford, Burlington City,
Pemberton Township, Willingboro and Cinnaminson have varying
ordinances requiring contractors to register with town clerks, post
bonds, or show proof of insurance before making home repairs or
renovations.
Evesham
contractor John DeMeo said the law would assist most contractors as
long as the state fee isn't exorbitant. He said most should be able
to afford additional insurance required by the measure.
Day
said the bill represents unwanted government interference. "If
a homeowner wants to know if I have insurance, all he needs to do is
ask me," he said.
Borstad
also questioned some points of the bill, among them the consumer
cancellation clause and the exemption for large improvement stores
which, she said, often use subcontractors to perform home repairs.
"It
should be the same for everyone," she said.
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