Bill Text: NJ A551 | 2024-2025 | Regular Session | Comm Sub

New Jersey Assembly Bill 551

Bill Title: Permits certain consumers up to five business days to cancel home improvement contracts and up to three days to cancel certain consumer goods contracts.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced) 2025-02-10 - Reported from Assembly Comm. as a Substitute, 2nd Reading [A551 Detail]

Download: New_Jersey-2024-A551-Comm_Sub.html

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 551

STATE OF NEW JERSEY

221st LEGISLATURE

ADOPTED FEBRUARY 10, 2025

Sponsored by:

Assemblyman STERLEY S. STANLEY

District 18 (Middlesex)

Assemblyman WILLIAM B. SAMPSON, IV

District 31 (Hudson)

Co-Sponsored by:

Assemblywoman Carter

SYNOPSIS

Permits certain consumers up to five business days to cancel home improvement contracts and up to three days to cancel certain consumer goods contracts.

CURRENT VERSION OF TEXT

Substitute as adopted by the Assembly Regulated Professions Committee.

An Act concerning certain consumer contracts, amending P.L.2004, c.16, and supplementing P.L.1960, c.39 (C.56:8-1 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. Section 16 of P.L.2004, c.16 (C.56:8-151) is amended to read as follows:

16. a. Every home improvement contract for a purchase price in excess of $500, and all changes in the terms and conditions of the contract, shall be in writing. The contract shall be signed by all parties thereto, including the home improvement contractor licensed pursuant to P.L.2023, c.237 (C.45:5AAA-1 et al.) and shall clearly and accurately set forth in legible form and in understandable language all terms and conditions of the contract, including but not limited to:

(1) The legal name, business address, and registration number of the contractor business, any contractor who will provide home improvement services, and the license number of the contractor licensed pursuant to P.L.2023, c.237 (C.45:5AAA-1 et al.);

(2) A copy of the certificate of commercial general liability insurance required of a contractor business pursuant to section 7 of P.L.2004, c.16 (C.56:8-142) and the telephone number of the insurance company issuing the certificate; and

(3) The total price or other consideration to be paid by the owner, including the finance charges.

b. On or after December 31, 2005, a home improvement contract may be cancelled by a consumer for any reason at any time: (1) before midnight of the third business day after the consumer receives a copy of [it] the signed contract; or (2) if the consumer is aged 60 or older, or is a consumer with an intellectual disability, regardless of age, before midnight of the fifth business day after the consumer receives a copy of the signed contract. In order to cancel a contract, the consumer shall notify the contractor business of the cancellation, in writing, by registered or certified mail, return receipt requested, or by personal delivery, to the address specified in the contract. All moneys paid pursuant to the cancelled contract shall be fully refunded within 30 days of receipt of the notice of cancellation. All goods delivered to the consumer pursuant to the cancelled home improvement contract shall be returned within 30 days of the cancellation of the contract. If the consumer has executed any credit or loan agreement through the contractor business to pay all or part of the contract, the agreement or note shall be cancelled without penalty to the consumer and written notice of that cancellation shall be mailed to the consumer within 30 days of receipt of the notice of cancellation. The contract shall contain a conspicuous notice printed in at least 10-point bold-faced type as follows:

"NOTICE TO CONSUMER

YOU MAY CANCEL THIS CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT. IF YOU WISH TO CANCEL [THIS] THE SIGNED CONTRACT, YOU MUST EITHER:

1. SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR

2. PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:

(Name of Contractor Business)

(Address of Contractor Business)

(Phone Number of Contractor Business)

If you cancel this contract within the three-day period, you are entitled to a full refund of your money. Refunds must be made within 30 days of the contractor business's receipt of the cancellation notice.

NOTICE TO CONSUMER AGED 60 OR OLDER AND CONSUMER WITH INTELLECTUAL DISABILITY

YOU MAY CANCEL THE SIGNED CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE FIFTH BUSINESS DAY AFTER RECEIVING A COPY OF THIS CONTRACT. IF YOU WISH TO CANCEL THE SIGNED CONTRACT, YOU MUST EITHER:

1. SEND A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION BY REGISTERED OR CERTIFIED MAIL, RETURN RECEIPT REQUESTED; OR

2. PERSONALLY DELIVER A SIGNED AND DATED WRITTEN NOTICE OF CANCELLATION TO:

(Name of Contractor Business)

(Address of Contractor Business)

(Phone Number of Contractor Business)

If you cancel this contract within the five-day period, you are entitled to a full refund of your money. Refunds must be made within 30 days of the contractor business's receipt of the cancellation notice."

(cf: P.L.2023, c.237, s.39)

2. (New section) a. A consumer may cancel any contract for the sale of goods priced at $500 or more for any reason before midnight of the third business day after the consumer enters into the contract if:

(1) the consumer is aged 60 years or older; or

(2) the consumer is a person with an intellectual disability.

b. All moneys paid pursuant to the cancelled contract shall be fully refunded within 30 days of receipt of the notice of cancellation. If the consumer has executed any credit or loan agreement through the merchant as part of the contract, the agreement or note shall be cancelled without penalty to the consumer and written notice of that cancellation shall be mailed to the consumer within 30 days of receipt of the notice of cancellation.

c. All goods delivered to the consumer pursuant to the cancelled contract shall be returned within 30 days of the cancellation of the contract.

d. Nothing herein shall affect the right of a consumer to waive the three day cancellation period established by this section consistent with applicable law.

3. (New section) Nothing in P.L. , c. (C. ) (pending before the Legislature as this bill) shall be construed to apply to contracts related to the sale or purchase of real estate or real estate brokerage services.

4. This act shall take effect on the first day of the fourth month next following enactment and shall apply to contracts entered into on or after that date.