NEWARK - New Jersey's Home Improvement Contractor law has reached a milestone on its second anniversary, as contractor registration applications at the Division of Consumer Affairs reached 50,000.

The HIC law, which took effect on January 1, 2006, requires all home improvement contractors to register annually with the Division of Consumer Affairs. To date, more than 43,000 registrations have been issued for the applications received. The remaining 7,000 applications are pending review or have been found to be missing data.

“The Home Improvement Contractor law provides consumers with additional protections when they contract for home repairs and renovations that can cost tens of thousands of dollars,” Attorney General Anne Milgram said.

Among other things, registered home improvement contractors must:

• maintain commercial general liability insurance in a minimum amount of $500,000 per occurrence;



• display the state-issued HIC registration number in their place of business, in all advertisements, in all business documents including contracts and on all commercial vehicles;


* put home improvement contracts with a purchase price exceeding $500 in writing and list all terms and conditions of the contract including: price; a description of the work to be done; materials to be used; and the dates or time period within which the work will be begun and completed. The contract must be signed by all parties; and

* provide a copy of the certificate of commercial general liability insurance with the contract

HICs cannot obtain construction permits from municipal construction code offices unless they are registered, under state law.

“The HIC law has benefited both homeowners and legitimate contractors,” Acting Consumer Affairs Director Larry DeMarzo said. “State and local officials are finding and taking action against unregistered home improvement contractors.”

More than 30 home improvement contractors settled matters involving violations of the HIC law last year, mainly through Consent Orders entered into with the Division of Consumer Affairs. The Office of the Attorney General and the Division also have filed suit against home improvement contractors for alleged HIC violations.

The HIC program and its staff of 17 employees are funded through registration fees. The HIC unit's budget this fiscal year is approximately $3 million.

Home improvements are defined as the remodeling, altering, painting, repairing, renovating, restoring, moving, demolishing, or modernizing of residential or noncommercial property or the making of additions thereto, and includes, but is not limited to, the construction, installation, replacement, improvement, or repair of driveways, sidewalks, swimming pools, terraces, patios, landscaping, fences, porches, windows, doors, cabinets, kitchens, bathrooms, garages, basements and basement waterproofing, fire protection devices, security protection devices, central heating and air conditioning equipment, water softeners, heaters, and purifiers, solar heating or water systems, insulation installation, aluminum siding, wall-to-wall carpeting or attached or inlaid floor coverings, and other changes, repairs, or improvements made in or on, attached to or forming a part of the residential or noncommercial property, but does not include the construction of a new residence. The term extends to the conversion of existing commercial structures into residential or non-commercial property and includes any of the above activities performed under emergency conditions.

Consumers can check online to see whether a home improvement contractor is registered, by going to http://www.njconsumeraffairs.gov/contractors.

An online complaint form is available at:

http://www.njconsumeraffairs.gov/ocp/ocpform.htm. Consumers also can file complaints by calling the Division at 1-800-242-5846 (within New Jersey) or 973-504-6200.

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