SENATE, No. 647
STATE OF NEW JERSEY
INTRODUCED FEBRUARY 5, 1996
By Senator CIESLA
An Act concerning certain master plumbers and plumbing contractors and amending and supplementing P.L.1968, c.362.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. (New section) For a bona fide representative to obtain and retain a pressure seal, the plumbing contractor for which the master plumber is a bona fide representative shall:
a. Secure, maintain and file with the State board proof of a bank letter of credit covering the plumbing done by that plumbing contractor or a certificate of general liability insurance from an insurance company authorized and licensed to do business in this State covering the plumbing done by that plumbing contractor. The minimum amount of the bank letter of credit shall be $300,000 for property damage and bodily injury to or death of one or more persons and the minimum amount of general liability insurance shall be $300,000 for the combined property damage and bodily injury to or death of one or more persons in any one accident or occurrence; and
b. File with the State board its Federal Tax Identification number.
Every proof of a bank letter of credit or certificate of insurance required to be filed with the State board pursuant to this section shall provide that cancellation of the bank letter of credit or insurance shall not be effective unless and until at least 10 days' notice of intention to cancel has been received in writing by the State board.
The provisions of this section shall apply only to a plumbing contractor who is actively engaged in plumbing.
2. (New section) a. A pressure seal shall be provided by the State board to a master plumber at the time of the issuance of the license or as soon thereafter as deemed appropriate by the State board. No pressure seal shall be provided or retained by a master plumber or bona fide representative unless the conditions of section 1 of this act are complied with. The cost of the pressure seal shall be paid by the master plumber to whom it is issued, but it shall remain the property of the State board. The pressure seal shall be surrendered to the State board immediately upon suspension, revocation or expiration of the license or when the conditions of section 1 of this act are not complied with.
b. A master plumber shall impress his pressure seal upon all applications for plumbing permits from the appropriate duly licensed State inspection agency.
c. A pressure seal shall be used exclusively by a master plumber in the conduct of the master plumber's practice as a plumbing contractor. Except as otherwise provided by the State board by regulation, a master plumber shall not willfully or negligently allow any person to use his pressure seal.
3. Section 18 of P.L.1968, c.362 (C.45:14C-18) is amended to read as follows:
18. [Every State license issued hereunder shall automatically expire on June 30 following the date of its issuance.] Licenses [may] shall be renewed [annually] biennially by the State board upon written application of the holder and payment of the prescribed fee and renewal of required bond. [Such] A license may be renewed without the holder having to be re-examined, provided [said] the application for renewal is made within 30 days next preceding or following the scheduled expiration date. Any applicant for renewal making application at any time subsequent to the 30 days next following the scheduled expiration date may be required by the State board to be re-examined, and such person shall not continue to act as a State licensed master plumber, as described in this act, and no firm, corporation or other legal entity for which such person is the bona fide representative shall operate thereafter under a State license in the plumbing business, as described in this act, until a valid State license has been secured or is held by a bona fide representative.
Any State license expiring while the holder thereof is outside the continental limits of the United States in connection with any project undertaken by the Government of the United States, or while in the services of the Armed Forces of the United States, shall be renewed without such holder being required to be re-examined, upon payment of the prescribed fee at any time within 4 months after such person's return to the United States or discharge from the armed forces, whichever is later.
(cf: P.L.1968, c.362, s.18)
4. This act shall take effect on the 90th day following enactment.
STATEMENT
This bill requires every plumbing contractor who is actively engaged in plumbing to have a bank letter of credit or general liability insurance of at least $300,000 and to file his Federal Tax Identification number with the State Board of Examiners of Master Plumbers. If a plumbing contractor does not comply with these requirements, the board would either revoke or not issue a pressure seal to the contractor's bona fide representative who is a licensed master plumber who holds at least 10% ownership of the contractor.
The bill also provides for the issuance of a pressure seal by the board to a master plumber and requires that a master plumber shall impress his pressure seal upon all applications for plumbing permits. In addition, the bill stipulates that a pressure seal shall be used exclusively by a master plumber's practice as a plumbing contractor and states that except as otherwise provided by the State Board of Examiners of Master Plumbers by regulation, a master plumber shall not willfully or negligently allow any person to use his pressure seal.
Requires plumbing contractors to have a bank letter of credit or liability insurance of $300,000.