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S2148 FISCAL ESTIMATE
LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 2148
STATE OF NEW JERSEY
222nd LEGISLATURE
DATED: JUNE 29, 2026
SUMMARY
Synopsis:
"General Contractor Licensing Act;" provides for
licensure of general contractors.
Type of Impact:
Annual State revenue and expenditure increases.
Agencies Affected:
Department of Law and Public Safety.
Office of
Legislative Services Estimate
Annual Fiscal Impact
Annual State Expenditure Increase
Indeterminate
Annual State Revenue Increase
Indeterminate
�
The Office of Legislative Services (OLS) finds that the
establishment of the New Jersey State Board of General Contractors will result
in indeterminate annual expenditures for the State associated with the
licensure and regulation of general contractors, including the cost of
establishing and operating the new nine-member board, establishing and
administering biannual exams, and performing other administrative
responsibilities under the bill.
�
An indeterminate amount of additional annual State revenue will
accrue from fee payments for the new general contractor licenses (valid for
three years), as well as from indeterminate fines and penalty payments from
violators of statutory and regulatory requirements applicable to the newly
licensed profession. The bill requires that licensure fees remain flexible to
ensure that expenditures related to licensure and oversight are sufficient to
pay the board�s expenses, yet do not generate excess revenues.
BILL DESCRIPTION
����� This bill establishes the New Jersey State Board of
General Contractors to regulate the general contracting profession by requiring
licensure by the board.
����� A general contractor is as an individual or business
that is classified as one of the following trades by the Division of Property
Management and Construction in the Department of the Treasury: construction
manager as constructor (006), design build (007), general construction (008),
or general construction alterations and additions (009).
����� The board is to consist of nine members and is
required to:
establish the
standards required for licensure; review the qualifications of individuals who
apply for licensure; ensure the proper conduct and standards of examination;
renew, suspend, or revoke licenses; prescribe or change fees for examination or
licensure; and maintain a record of all licensed general contractors. No
person may hold themselves out as a general contractor without being
licensed.
����� Under the bill, to be eligible as a general
contractor, a person is required to: (1) be at least 18 years of age; (2) have
completed a program accredited by a regional accreditation agency recognized by
the United States Department of Education leading to a degree in construction
or project management or an apprenticeship program in a building or
construction trade accredited and approved by the United States Department of
Labor, the New Jersey Department of Labor and Workforce Development, or
affiliated unions; (3) possess certain field experience; and (4) have
successfully passed an examination in general contracting prepared by or
approved by the board.� The examination is to be held in the State at least two
times a year at a time and place determined by the board.� The board may also
arrange for reasonably required physical accommodations and facilities to
conduct examinations.� The board is also permitted to establish standards and
procedures to provide that the examination be offered via the Internet.�
Additionally, a study guide for the examination is to be created by the board.
���� Individuals who have at least 10 years of experience
performing general contracting services prior to the effective date of this
bill and who, during that time, have not declared bankruptcy or altered the
name of a business to deceive other parties regarding an interest in or
ownership of a previous business, are exempt from these education and
examination requirements, as are individuals with a license, certification, or
registration issued by the State in a closely allied profession, which includes
commercial general contracting.� Additionally, individuals who can demonstrate
completion of five years of field experience prior to the effective date of the
bill and that was performed under the supervision of a general contractor with
at least 10 years of experience completed prior to the effective date of the
bill will also qualify for licensure upon passage of the examination required
of the bill.
���� Licenses issued by the board are to be renewed every
three years.� Fees for licensure are to be determined by the board and
established by regulation.�
Fees
shall be established, prescribed to the extent necessary to defray all proper
expenses incurred by the board and any staff employed to administer the
provisions of this act but shall not be fixed at an amount that will raise
revenue in excess of the amount estimated to be so required.
� The board
is required to promulgate rules and regulations for implementing continuing
education requirements as a condition of licensure renewal, which are to
include the subject matter and content of courses of study.� Once a license is
issued, the licensee is to have the license readily available at the work site where
general contracting services are being performed.
FISCAL ANALYSIS
EXECUTIVE BRANCH
����� None received.
OFFICE OF LEGISLATIVE SERVICES
����� The OLS finds that the establishment of the New Jersey
State Board of General Contractors will result in indeterminate annual
operating expenditures for the State associated with the licensure and
regulation of general contractors, including the cost of establishing and
operating the new nine-member board and establishing and administering biannual
exams.
����� Under current law, members of professional boards are
generally compensated on a per diem basis in the amount of $25, or another
amount determined by the Office of the Attorney General with the approval of
the Department of the Treasury that does not exceed $100 per diem, or $2,500
annually. The OLS, however, cannot determine the potential magnitude of board expenditures
due to uncertainty regarding the number of professionals who will be regulated
and the operational decisions the board will make to implement the bill.
����� The bill will increase annual State revenue
collections from licensure and renewal fees, fines, and penalties by
indeterminate amounts. �The OLS cannot quantify the fee payments the board will
collect from the licensing and renewal requirements because the bill leaves the
setting of specific fee levels to the board�s discretion and the number of
future licensees and renewals is unknown. The bill does require the licensure
fees to remain flexible to ensure that expenditures related to the licensure
and oversight are sufficient to pay the board�s expenses, yet do not generate
excess revenues.
����� The OLS anticipates that the State may annually
collect indeterminate fines and penalty payments from violators of statutory
and regulatory requirements applicable to the newly licensed profession. �The
OLS has no information on which to base an estimate of the number and magnitude
of future civil penalty assessments and payments.
Section:
Law and Public Safet
y
Analyst:
Kristin Brunner Santos
Lead Fiscal Analyst
Approved:
Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the
Office of Legislative Services due to the failure of the Executive Branch to
respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980,
c.67 (C.52:13B-6 et seq.).