Rule Proposal

​​VOLUME 49, ISSUE 15
ISSUE DATE: AUGUST 7, 2017
RULE PROPOSALS
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
STATE BOARD OF COSMETOLOGY AND HAIRSTYLING

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Proposed Amendment: N.J.A.C. 13:28-5.1

Click here to view Interested Persons Statement

Fee Schedule
 
Authorized By: State Board of Cosmetology and Hairstyling, Jay Malanga, Executive Director.
 
Authority: N.J.S.A. 45:1-3.2 and 45:5B-6.
 
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
 
Proposal Number: PRN 2017-144.
 
Submit written comments by October 6, 2017, to:
 
   Jay Malanga, Executive Director
   State Board of Cosmetology and Hairstyling
   PO Box 45003
   Newark, New Jersey 07101
   or electronically at: www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.
 
The agency proposal follows:
Summary

The State Board of Cosmetology and Hairstyling (Board) proposes to amend N.J.A.C. 13:28-5.1, which sets forth the Board's fee schedule. Under the statutory authority set forth in N.J.S.A. 45:1-3.2, a professional board's fees must be established in an amount necessary to defray proper expenses incurred in performing its duties, but such fees may not be raised in an amount in excess of the amount estimated to allow the Board to carry out its duties. A fiscal analysis conducted by the Division of Consumer Affairs (Division) revealed that the proposed fee increases are necessary and appropriate to satisfy the Board's current and anticipated expense levels and comport with the requirements of N.J.S.A. 45:1-3.2.

Based on the analysis conducted by the Division, the Board is proposing to increase the initial license and renewal fees for cosmetologist-hairstylists, beauticians, skin care specialists, manicurists, barbers, teachers, and shop owners to raise revenues to meet anticipated expense levels consistent with the Board's statutory obligation. The fees that are the subject of this notice proposal are necessary for the Board to perform its statutory obligations to the regulated community and to the public at large in maintaining professional and ethical business practices in the provision of cosmetology services.

The fees established in N.J.A.C. 13:28-5.1 provide the Board with its primary source of revenue and are all allocated to the Board's on-going maintenance costs including: salaries of Board staff and Board member per diem compensation; costs incurred regulating the licensed community, such as reviewing and filing data submitted by licensees and registered businesses; responding to complaints and concerns of consumers and the public at large; adjudicating disciplinary matters related to licensees and registered businesses; regulating compliance requirements of licensees; and the general regulation of the licensed community. Moreover, the Board must reimburse different divisions and bureaus of the State for services rendered and costs prorated to the Board for various initiatives. These costs include: costs allocable to the Division of Law for legal services, costs incurred by the Enforcement Bureau of the Division for routine and special investigations of licensee practices, and compliance costs of Division-wide initiatives, such as the purchase and implementation of a Division-wide licensing database system.

The Board notes that its fees have not been increased since 1996. Consequently, it must now increase fees to ensure that the Board will generate sufficient funds to cover its expenses for the next biennial renewal period. The Board is proposing to amend N.J.A.C. 13:28-5.1 to increase the initial license fee for cosmetology and hairstyling, beauty culture, barbering, skin care, manicuring, and teachers during the first year of a biennial period from $ 60.00 to $ 90.00, during the second year of a biennial period from $ 30.00 to $ 45.00, and for the biennial renewal from $ 60.00 to $ 90.00. The Board is also proposing to increase the initial licensing fee for shops during the first year of a biennial period from $ 130.00 to $ 200.00, during the second year of a biennial period from $ 65.00 to $ 100.00, and for the biennial renewal from $ 130.00 to $ 200.00.

The Board has determined that the comment period for this notice proposal will be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this notice is excepted from the rulemaking calendar requirement.
Social Impact

The proposed fee increases will have an impact upon all individual applicants, shop license applicants, and current licensees seeking renewal. The proposed fee increases will have an impact on the Board by enabling the Board to continue to meet the operating expenses incurred in fulfilling its statutory obligations to evaluate applicants for licensure, investigate complaints, initiate appropriate disciplinary and enforcement actions, and regulate the practice and teaching of cosmetology and hairstyling, beauty culture, barbering, manicuring, and skin care throughout the State and to oversee shops that offer services to the general public. The Board believes that the proposed amendments will have a positive impact on the general public to the extent that the Board will have adequate resources to devote to regulating the provisions of those professions overseen by the Board.
 
Economic Impact

The proposed fee increases will have an economic impact on the approximately 73,800 individual licensees and 9,800 shops. These licensees will be required to pay increased biennial renewal fees. The proposed fee increases will also have an impact on applicants for initial licensure who will be required to pay increased initial license fees. The Board has determined that the proposed fee increases are essential for the Board to raise the revenue necessary to continue to discharge its statutory obligation to regulate the practice and teaching of cosmetology and hairstyling, beauty culture, barbering, manicuring, and skin care. The proposed fee increases will have an economic impact on the Board to the extent that the increased fees are necessary to defray all proper expenses incurred by the Board in compliance with N.J.S.A. 45:1-3.2.
 
Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments are governed by N.J.S.A. 45:5B-6.l and N.J.S.A. 45:1-3.2, and are not subject to any Federal requirements or standards.
Jobs Impact

The proposed amendments may have an impact on jobs in the State to the extent that otherwise qualified applicants for licensure may not be able to afford the increased initial license fees, or that currently licensed individuals and businesses may be unable to afford the increased biennial renewal fees. The Board cannot estimate with certainty the number of individuals or businesses, if any, who will be unable to afford the increased fees. The Board, however, believes that any impact on jobs that may result from the proposed amendments will be outweighed by the positive benefits derived from having a fully funded Board that will be equipped to carry out its statutory obligations to the regulated community and to the public at large.
 
[page=2456] Agriculture Industry Impact

The Board does not believe that the proposed amendments will have any impact on the agriculture industry of this State.
 
Regulatory Flexibility Analysis

Currently, the Board regulates approximately 73,500 individual licensees and 9,800 shops. If Board license holders are considered "small businesses," within the meaning of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., then the following analysis applies.

The proposed amendments to the fee schedule do not impose any reporting, recordkeeping, or compliance requirements upon licensees or upon applicants for licensure. No additional professional services will be needed to comply with the proposed amendments. The costs of compliance with the proposed amendments are discussed in the Economic Impact statement above. The Board believes that the proposed amendments should be uniformly applied to all licensees for licensure to ensure the health, safety, and welfare of the general public in the performance and teaching of cosmetology and hairstyling services and, therefore, no differing compliance requirements for any businesses are provided based upon size.
 
Housing Affordability Impact Analysis

The proposed amendments will have an insignificant impact on the affordability of housing in New Jersey and there is an extreme unlikelihood that the regulation would evoke a change in the average costs associated with housing because the proposed amendments concern increased fees for licensees of the Board.
Smart Growth Development Impact Analysis

The proposed amendments will have an insignificant impact on smart growth and there is an extreme unlikelihood that the amendments would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan in New Jersey because the proposed amendments concern increased fees for licensees of the Board.
 
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):
 
SUBCHAPTER 5.    FEES
 
13:28-5.1   Fee schedule
 
(a) The following fees will be charged by the Board: