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Contractor groups oppose Senate proposal to require private-contractor registration and fees

New Jersey Senate Labor Committee

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Summary

S2963, a proposal to require registration and multi-hundred-dollar fees from private contractors, drew strong opposition from trade groups who called the proposal a tax on working and highlighted disclosure and compliance concerns.

Senate Bill 2963, described to the committee as the New Jersey Private Contractor Registration Act, would require registration of private contractors doing construction work in the state and impose an initial nonrefundable fee of $750 and a recurring $500 fee for each subsequent two-year registration period (with reduced schedules for low-revenue entities and nonprofits). The committee heard sustained opposition from representatives of licensed HVAC, electrical and fuel-merchant contractors and builders.

Eric DeJessereau (New Jersey Independent Electrical Contractors Association and Fuel Merchants Association) characterized the fee schedule as "a $75 per employee tax" for small contractors and warned the proposal created new disclosure obligations, including providing names, addresses and percentage interest of persons with financial interest. He asked why the bill would apply to private contractors while other types of corporations would not face similar disclosure requirements.

Jeff Kolokowski of the New Jersey Builders Association urged the committee to reject the bill, arguing that contractors already register for corporate and tax obligations and that the additional registration fee would be duplicative and costly for small businesses.

Multiple trade groups filed opposition slips; a number of labor and union organizations filed in favor or required no testimony. Committee members asked whether sponsors had discussed the bill with stakeholders; several witnesses said they had not yet had a substantive conversation with the sponsor and urged more outreach before any floor consideration.

The item was discussed at length and the committee did not report S2963 at this meeting; senators signaled they would await additional stakeholder engagement and potential revisions.