Permits consumers aged 65 and over up to five business days to cancel home improvement contracts.

S3572

SENATE, No. 3572

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED FEBRUARY 19, 2026

Sponsored by:

Senator� LINDA R. GREENSTEIN

District 14 (Mercer and Middlesex)

SYNOPSIS

���� Permits consumers aged 65 and over up to five
business days to cancel home improvement contracts.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning certain home improvement contracts and
amending P.L.2004, c.16.

����
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 before midnight of the third business day after the consumer
receives a copy of
[
it
]

the signed
contract or, if the consumer is aged 65 or older, for any reason at any time
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.� 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
SIGNED

CONTRACT AT ANY TIME BEFORE MIDNIGHT OF THE THIRD BUSINESS DAY
(OR BEFORE
MIDNIGHT OF THE FIFTH BUSINESS DAY IF AGED 65 OR OVER)
AFTER RECEIVING A
COPY OF
[
THIS
]

THE SIGNED

CONTRACT.� IF YOU WISH TO CANCEL THIS 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
]

appropriate
time
period, you
[
are
]

will be

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.��� This act shall take
effect on the first day of the fourth month next following enactment.

STATEMENT

���� This bill permits consumers
aged 65 and over up to five business days to cancel a home improvement contract
for any reason.

���� Under this bill, a consumer
aged 65 or over may cancel a home improvement contract at any time for any
reason before midnight of the fifth business day after the consumer receives a
copy of the signed contract.� Currently, consumers have up to three business
days to cancel a home improvement contract.� The change being made under this
bill reflects the potential need of the State�s senior citizens, who may
require more time to review home improvement contracts due to advanced age.