Rule Proposal

​

Proposed Amendment: N.J.A.C. 13:31-1.6

Click here to view Interested Persons Statement

Fee Schedule

Authorized By: Board of Examiners of Electrical Contractors, Philameana Tucker, Executive Director.

Authority: N.J.S.A. 45:5A-6.

Calendar Reference: See Summary below for explanation of exception to calendar requirement.

Proposal Number: PRN 2017-146.

Submit written comments by October 6, 2017, to:

Philameana Tucker, Executive Director
Board of Examiners of Electrical Contractors
124 Halsey Street
Post Office Box 45006
Newark, New Jersey 07101
or electronically at: www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.

The agency proposal follows:
Summary

The Board of Examiners of Electrical Contractors (Board) proposes to amend N.J.A.C. 13:31-1.6, 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 to 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 electrical contractors and qualified journeymen and increase the initial and renewal fees for business permits to raise revenues to meet anticipated expense levels consistent with the Board's statutory obligation. The proposed fees are necessary for the Board to perform its statutory obligations to the regulated community and public at large to maintain professional and ethical business practices in the provision of electrical contracting services.

The fees established in N.J.A.C. 13:31-1.6 provide the Board with its primary source of revenue and are all allocated to the Board's ongoing maintenance costs including: salaries of Board staff and Board member per diem compensation; costs incurred in regulating the licensed community, such as reviewing and filing data submitted by licensees, registrants, and business permit holders; responding to complaints and concerns of consumers and the public at large; adjudicating disciplinary matters related to licensees, registrants, and business permit holders; 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 1991. Consequently, an increase in fees is now necessary to ensure the Board will generate sufficient funds to cover its expenses for the next triennial renewal period. The Board is proposing to amend N.J.A.C. 13:31-1.6(a) to increase the initial license fee during the first year of a triennial period from $ 150.00 to $ 225.00, during the second year of a triennial period from $ 100.00 to $ 150.00, and during the third year of a triennial period from $ 50.00 to $ 75.00. In addition, the Board is proposing to increase the initial registration fee for a qualified journeyman during the first year of a triennial period from $ 60.00 to $ 90.00, during the second year of a triennial period from $ 40.00 to $ 60.00, and during the third year of a triennial period from $ 20.00 to $ 30.00. The Board is also proposing to increase the fee for a business permit from $ 75.00 to $ 150.00 during the first year of a triennial period, from $ 50.00 to $ 100.00 in the second year of a triennial period, and from $ 25.00 to $ 50.00 in the third year of a triennial period. In addition, the Board is proposing to increase the renewal fee for electrical contractors from $ 150.00 to $ 225.00, for qualified journeyman from $ 60.00 to $ 90.00, and for business permit holders from $ 75.00 to $ 150.00. Consistent with these proposed increases, the Board is proposing to increase the temporary courtesy license and renewal fees for electrical contractors from $ 50.00 to $ 75.00, and the temporary courtesy registration and renewal fees for qualified journeymen from $ 20.00 to $ 30.00. The Board is also proposing to increase the telecommunications wiring exemption-application and issuance of identification card fee from $ 120.00 to $ 250.00, and the continuing education sponsor fee from $ 100.00 to $ 200.00.

The Board has determined that the comment period for this notice of 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 on all individual applicants and all business permit holder applicants, and licensees, registrants, and business permit holders having their licenses, registrations, and permits renewed. In addition, the proposed fee increases will have an impact on continuing education sponsors and those individuals and businesses applying for a telecommunications wiring exemption. The proposed fee increases will have an impact on the Board by enabling the Board to continue to meet the operating expenses incurred while fulfilling its statutory obligations to evaluate applicants for licensure, investigate complaints, initiate appropriate disciplinary and enforcement actions, regulate the practice of electrical contracting throughout the State, and oversee electrical contracting businesses that offer services to the general public. The Board believes that the proposed amendments will have a positive impact upon the general public to the extent that the Board will have adequate resources to devote to regulating the practice of electrical contracting.

Economic Impact

The proposed fee increases will have an economic impact on the approximately 8,663 electrical contractors, 932 qualified journeymen, 6,560 business permit holders, 197 continuing education sponsors, and those individuals and businesses applying for the telecommunication wiring exemption. These licensees, registrants, and business permit holders will be required to pay increased triennial 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. In addition, the proposed fee increases will impact the continuing education sponsors who will be required to pay increased initial fees and reapplication fees when there are changes to the course content, hours of instruction, or the course lecturer. The proposed fee increases will also impact those individuals and businesses applying for the telecommunication wiring exemption. 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 of electrical contracting. 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.

[page=2459] Federal Standards Statement

A Federal standards analysis is not required because the proposed amendments are governed by N.J.S.A. 45:5A-1 et seq., and are not subject to any Federal laws or standards.

Jobs Impact

The Board does not anticipate that the proposed amendments will increase or decrease jobs in the State.

Agriculture Industry Impact

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

Regulatory Flexibility Analysis

Currently, the Board regulates approximately 8,663 electrical contractors, 932 qualified journeymen, 6,560 business permit holders, and 197 continuing education sponsors. The Board also grants to individual and business applicants a telecommunication wiring exemption. If Board licensees, registrants, business permit holders, continuing education sponsors, and applicants for the telecommunication wiring exemption 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, registrants, business permit holders, continuing education sponsors, or upon applicants for licensure, registration, business permits, or the telecommunication wiring exemption. 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, registrants, business permit holders, continuing education sponsors, and applicants for licensure, registration, business permits, and the telecommunication wiring exemption to ensure the safety and welfare of the general public in the practice of electrical contracting 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 proposed amendments would evoke a change in the average costs associated with housing because the proposed amendments concern increased fees for licensure, registration, and business permits for those engaged in the practice of electrical contracting.

Smart Growth Development Impact Analysis

The proposed amendments will have an insignificant impact on smart growth and there is an extreme unlikelihood that the regulation would evoke a change in housing production in Planning Areas 1 or 2, or within designated centers, under the State Development and Redevelopment Plan because the proposed amendments concern increased fees for licensure, registration, and business permits for those engaged in the practice of electrical contracting.

Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

SUBCHAPTER 1. GENERAL RULES AND REGULATIONS

13:31-1.6 Fee schedule

(a) The following fees shall be charged by the Board:

1. (No change.)

2. Initial license fee:

i. If paid during the first year of a triennial
renewal period...................... [$ 150.00] $ 225.00

ii. If paid during the second year of a triennial
renewal period...................... [$ 100.00] $ 150.00

iii. If paid during the third year of a triennial
renewal period...................... [$ 50.00] $ 75.00

3. Triennial license renewal............... [$ 150.00] $ 225.00
4.-5. (No change.)

6. Business permit:

i. If paid during the first year of a triennial
renewal period...................... [$ 75.00] $ 150.00

ii. If paid during the second year of a triennial
renewal period...................... [$ 50.00] $ 100.00

iii. If paid during the third year of a triennial
renewal period...................... [$ 25.00] $ 50.00

7. Triennial business permit renewal [$ 75.00] $ 150.00

8.-12. (No change.)

13. Qualified journeyman electrician initial registration fee:

i. If paid during the first year of a
triennial.............................. [$ 60.00] $ 90.00

ii. If paid during the second year of a
triennial...............................[40.00] $ 60.00

iii. If paid during the third year of
triennial ............................. [$ 20.00] $ 30.00

14. Qualified journeyman electrician registration
registration........................... [60.00] $ 90.00
15. Telecommunications wiring exemption--
application fee and issuance of identification
card (non-refundable).................. [$ 120.00] $ 250.00

16. Continuing education sponsor fee....... [$ 100.00] $ 200.00

17. Temporary courtesy license fee......... [$ 50.00] $ 75.00

18. Qualified journeyman electrician temporary
courtesy registration fee............... [$ 20.00] $ 30.00

19. Renewal of temporary courtesy license fee... [$ 50.00] $ 75.00

20. Renewal of qualified journeyman electrician
temporary courtesy registration fee........ [$ 20.00] $ 30.00