[HISTORY: Adopted by the Borough Council of the Borough of Carteret
9-2-1982 as Ord. No. 82-14. Section 146-10A amended at time of adoption of
Code; see Ch. 1, General Provisions, Art. I. Other amendments noted where
applicable.]
It is the purpose of the Municipal Council of the Borough of Carteret
in enacting this chapter to safeguard and protect the homeowner against abuses
and fraudulent practices by licensing persons engaged in the home improvement,
remodeling and repair businesses.
As used in this chapter, the following terms shall have the meanings
indicated:
Any structure containing no more than four residence or dwelling
units.
Any person or salesman, other than a bona fide employee of the owner,
who owns, operates, maintains, conducts, controls or transacts a home improvement
business and who undertakes or offers to undertake or agrees to perform any
home improvement or solicits any contract therefor, whether or not such person
is licensed or subject to the licensing requirements of this chapter and whether
or not such person is a prime contractor or subcontractor with respect to
the owner.
The construction, demolition, repair, replacement, remodeling, alteration,
conversion, rehabilitation, renovation, modernization, improvement or addition
to any land or building or that portion thereof which is used or designed
to be used as a residence or dwelling place, and shall include but not be
limited to the construction, erection, replacement or improvement of driveways,
swimming pools, terraces, patios, landscaping, fences, porches, garages, fallout
shelters, basements and other improvements to structures or upon land which
is adjacent to a dwelling house.
"Home improvement" shall not include:
The construction of a new home building or work done by a contractor
in compliance with a guaranty of completion of a new building project.
The sale of goods or materials by a seller who neither arranges to perform
nor performs, directly or indirectly, any work or labor in connection with
the installation of or application of the goods or materials.
Residences owned by or controlled by the state or any municipal subdivision
thereof.
Painting or decorating of a building, residence, home or apartment,
when not incidental or related to home improvement work as herein defined.
Without regard to the extent of affixation, "home improvement" shall
also include the installation of central heating or air-conditioning systems,
central vacuum-cleaning systems, storm windows, awnings, fire or burglar alarms,
communication systems, the insulation of a structure or the demolition of
a structure.
An agreement, whether oral or written or contained in one or more
documents, between a contractor and an owner or contractor and a tenant, regardless
of the number of residence or dwelling units contained in the building in
which the tenant resides, provided that said work is to be performed in, to
or upon the residence or dwelling unit of such tenant, for the performance
of a home improvement, and includes all labor, services and materials to be
furnished and performed thereunder.
Any shop, establishment, place or premises where the home improvement
business is transacted or carried on.
A person permitted to engage in the home improvement business under
the provisions of the chapter.
Any homeowner, condominium unit owner, tenant or any other person
who orders, contracts for or purchases the home improvement services of a
contractor or the person entitled to the performance of the work of a contractor
pursuant to a home improvement contract.
An individual, firm, company, salesman, partnership or corporation,
trade group or association.
Any individual who negotiates or offers to negotiate a home improvement
contract with an owner or solicits or otherwise endeavors to procure in person
a home improvement contract from an owner on behalf of a contractor or for
himself, should the "salesman" be also the contractor, whether or not such
person is licensed or subject to the licensing requirements of this chapter.
The duly appointed Zoning Officer of the borough.
A.
No person shall solicit, canvass, sell, perform or obtain
a home improvement contract as a contractor salesman from an owner without
a license therefor.
B.
A license issued pursuant to this chapter may not be
construed to authorize the licensee to perform any particular type of work
or engage in any kind of business which is reserved to qualified licensees
under separate provisions of state or local law, nor shall any license or
authority other than as is issued or permitted pursuant to this chapter authorize
engaging in the home improvement business.
A.
Fees.
[Amended 4-6-2000 by Ord.
No. 00-9]
(1)
The fee for a license to conduct a home improvement business
shall be $150; and for each renewal thereof, the fee shall be $150.
(2)
The fee for a salesman's license employed by a home improvement
contractor shall be $50; and for each renewal thereof, the fee shall be $50.
(3)
The fee for issuing a duplicate license or for one lost,
destroyed or mutilated shall be $25.
B.
Licenses shall be issued for a two-year period, the commencement
date being July 1 and the termination date being June 30, unless said license
shall be suspended or revoked by the Mayor and Council.
A.
A license issued hereunder to a licensee shall be posted
in a conspicuous place in the principal place of business, and a copy of the
license and a copy of the liability insurance policy shall be carried by each
licensee while soliciting any home improvement contract under this chapter.
B.
A duplicate license may be issued for one lost or mutilated
and shall bear the word "duplicate" stamped across its face.
In addition to the powers and duties elsewhere prescribed in this chapter,
the Zoning Officer shall have the power:
A.
Subject to the funds made available in the budget of
the borough, to appoint an adequate number of assistants, inspectors and other
employees as may be necessary to carry out the provisions of this chapter,
to recommend an ordinance to prescribe the duties of such inspectors and other
employees and to fix their compensation within the amount appropriated therefor.
B.
To examine the qualifications and fitness of applicants
for licenses under this chapter.
C.
To keep records of all licenses issued, suspended or
revoked.
D.
At any time, to require reasonable information of an
applicant or licensee and to require the production of books of accounts,
financial statements, contracts or other records which relate to the home
improvement activity, qualification or compliance with this chapter by the
licensee; provided, however, that said information and production of records
is required of him pursuant to his regular business and functions under this
chapter.
E.
To adopt rules and regulations related to the identification
of salesmen.
A.
An application for a license or renewal thereof shall
be made to the Zoning Officer on a form prescribed by him.
B.
A separate license shall be required for each place of
business.
C.
The application shall be filed only by the actual owner
of a business, shall be in writing, signed and under oath. It shall contain
the office address of the business, the name and residence address of the
owner or partner and, if a corporation, trade group or association, the names
and resident addresses of the directors and principal officers.
D.
The application shall include an affidavit or certification
of the actual owner that the applicant carries workmen's compensation insurance
in accordance with the requirements of the laws of the State of New Jersey
and also personal injury and property damage liability insurance. Copies of
these policies shall be attached to the affidavit or certification. The personal
injury and property damage liability insurance shall be in the amount of ______
.
E.
The Zoning Officer may require the names and residence
addresses of any employees of an applicant, in addition to any other information
which he may deem advisable.
F.
Each applicant shall be over 18 years of age and of good
character.
G.
The Zoning Officer shall investigate each applicant as
to good character before a license is issued.
The Zoning Officer may make such rules and regulations not inconsistent
with the provisions of this chapter as may be necessary with respect to the
form and content of the application for licenses, the reception thereof, the
investigation and examination of applicants and their qualifications and the
other matters incidental or appropriate to his powers and duties as prescribed
by this chapter and for the proper administration and enforcement of the provisions
of this chapter and to amend or repeal any such rules and regulations.
A.
Any person who shall violate any provision of this chapter or shall fail to comply with any of the requirements thereof shall, upon conviction thereof, be subject to the penalties set forth in § 1-17 of this Code.
[Amended 4-19-1990 by Ord.
No. 90-16]
B.
The Zoning Officer shall have authority to revoke or
suspend any license issued pursuant to this chapter or to deny the renewal
of a license for any one or more of the following causes:
(1)
Fraud, misrepresentation, or bribery in securing a license.
(2)
The making of any false statement as to a material matter
in any application for a license.
(3)
The person or the management personnel of the contractor
are untrustworthy or not of good character.
(4)
The business transactions of the contractor have been
or are marked by a practice of failure to timely perform or complete its contracts
or the manipulation of assets or accounts or by fraud or bad faith or are
marked by an unwholesome method or practice of solicitation of business from
owners.
(5)
Failure to display the license as provided in this chapter.
(6)
Failure to comply with any demand or requirement lawfully
made by the Zoning Officer.
(7)
When an agent or employee of a licensee has been guilty
of an act of omission, fraud or misrepresentation and the licensee has approved
or had knowledge thereof.
(8)
Violation of any provision of this chapter or any rule
or regulation adopted hereunder or for performing or attempting to perform
any act prohibited by this chapter.
A.
The following acts are prohibited:
(1)
Abandonment or willful failure to perform, without justification,
any home improvement contract or project engaged in or undertaken by a contractor
or willful deviation from or disregard of plans or specifications in any material
respect without the consent of the owner.
(2)
Making any substantial misrepresentation in the solicitation
or procurement of a home improvement contract or making any false promise
of character likely to influence, persuade or induce.
(3)
Any fraud in the execution of or in the material alteration
of any contract, mortgage, promissory note or other document incident to a
home improvement transaction.
(4)
Preparing or accepting any mortgage, promissory note
or other evidence of indebtedness upon the obligations of a home improvement
transaction with knowledge that it recites a greater monetary obligation than
the agreed consideration of the home improvement work.
(5)
Directly or indirectly publishing any advertisement relating
to home improvements which contains an assertion, representation or statement
of fact which is false, deceptive or misleading, provided that any advertisement
which is subjected to and complies with the then existing rules, regulations
or guides of the Federal Trade Commission shall not be deemed false, deceptive
or misleading, or by any means advertising or purporting to offer the general
public any home improvement work with the intent not to accept contracts for
the particular work or at the price which is advertised to the public.
(7)
Failure to notify the Zoning Officer of any change of
control in ownership, management or business name or location.
(8)
Conducting a home improvement business in any name other
than the one in which the contractor is licensed.
(9)
Willful failure to comply with any order, demand, rule,
regulation or requirement made by the Zoning Officer pursuant to provisions
of this chapter.
B.
As part of or in connection with the inducement to make
a home improvement contract, no person shall promise or offer to pay credit
or allow to a buyer any compensation or reward for the procurement of a home
improvement contract with others.
C.
Restrictions on salesmen.
(1)
No salesman may concurrently represent more than one
contractor in the solicitation or negotiation of any one home improvement
contract from an owner. The use of a contract form which fails to disclose
a named contractor principal, whether for the purpose of offering the contract
to various contractors other than the one the salesman purported to represent
in negotiation or otherwise, is prohibited. No salesman may be authorized
to select a prime contractor on behalf of the owner.
(2)
No salesman shall accept or pay any compensation of any
kind for or on account of a home improvement transaction from or for any person
other than the contractor whom he represents with respect to the transaction.
D.
Inducements to enter contracts.
(1)
As part of or in connection with the inducement to enter
any home improvement contract, no person shall promise or offer to pay credit
or allow to any owner compensation or reward for the procurement or placing
of home improvements business with others.
(2)
No contractor or salesman shall offer, deliver, pay,
credit or allow to the owner any gift, bonus award or merchandise, trading
stamps or cash loan as an inducement to enter a home improvement contract.
(3)
A contractor or salesman may give tangible items to prospective
customers for advertising or sales promotion work, provided that no such item
shall exceed a cost value of $5, and no owner and/or other person shall receive
more than one such item in connection with any one transaction.
E.
No person shall perform any home improvement work unless
that person currently maintains workmen's compensation insurance in accordance
with the requirements of the laws of the State of New Jersey and personal
injury and property damage liability insurance in the amount of ______ .
Any contractor, canvasser or seller of home improvements who shall knowingly make any false or fraudulent representations or statements or who makes or causes any such statements to be made in respect to the character of any sale or the party authorizing the same or as to the quality, condition or value of any property offered by him for sale shall be deemed in violation of this chapter and, upon conviction thereof, shall be punished in accordance with § 146-10.
Any home improvement contract entered into between a contractor and
an owner shall comply with the provisions of the Home Repair Financing Act,
P.L. 1960, c. 41, as amended.[1]
[1]
Editor's Note: See N.J.S.A. 17:16C-62 et seq.
A.
No contractor's license shall be required in the following
instances:
(1)
An individual who performs labor or services for a contractor
for wages or salary.
(2)
A plumber, electrician, architect, professional engineer
or any other such person who is required by state or municipal ordinance to
attain standards of competency or experience as a prerequisite to engaging
in such craft or profession and who is acting pursuant to such other law.
(3)
Any retail clerk, clerical, administrative or other employee
of a licensed contractor, as to a transaction on the premises of the contractor.
(4)
Any home improvement where the aggregate contract price
for all labor, materials and other items is less than $200. This exemption
does not apply where the work is only part of a larger or major operation,
whether undertaken by the same or a different contractor, or in which a division
of the operation is made in contracts of amounts less than $200 for the purpose
of evasion of this provision or otherwise.
B.
This chapter shall not apply to or affect the validity
of a home improvement contract otherwise within the purview of this chapter
which is made prior to the effective date of the respective provisions of
this chapter governing such contracts.
A.
The Zoning Officer shall have the power to make such
investigation as he deems necessary and may examine the books, accounts, records
and files of any person who is a party to or holder of a home improvement
contract. ____________ shall have the power to administer oaths and affirmations
of any persons whose testimony is required.
B.
The Zoning Officer shall have the power to issue subpoenas
to compel the attendance of witnesses and the production of documents, papers,
books, records and other evidence before him in any matter pertaining to this
chapter.
A.
No license shall be suspended or revoked nor a fine imposed
until after a hearing has been held before the Mayor and Council.
B.
The licensee shall be given 10 days' notice of the hearing,
and the Borough Clerk shall set the date and meeting place of the hearing.
The licensee shall be given an opportunity to be heard, and the Mayor and
Council's determination upon completion of the hearing shall be final.
C.
Notice of the hearing shall be served either personally
or by registered mail and shall state the date and place of hearing and set
forth the ground or grounds constituting the charges against the licensee.
