Rule Proposal

​​VOLUME 49, ISSUE 15
ISSUE DATE: AUGUST 7, 2017
RULE PROPOSALS
LAW ANDPUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
BOARD OF EXAMINERS OF ELECTRICAL CONTRACTORS
FIRE ALARM, BURGLAR ALARM AND LOCKSMITH ADVISORY COMMITTEE

​

​​Proposed Amendment: N.J.A.C. 13:31A-1.4

Click here to view Interested Persons Statement

Fees
 
Authorized By: Board of Examiners of Electrical Contractors, Philameana Tucker, Executive Director.
 
Authority: N.J.S.A. 45:5A-24.
 
Calendar Reference: See Summary below for explanation of exception to calendar requirement.
 
Proposal Number: PRN 2017-147.
 
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. 13:31A-1.4, which sets forth the Fire Alarm, Burglar Alarm and Locksmith Advisory Committee's (Committee) 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 [page=2460] may not be raised in an amount in excess of the amount estimated to allow the Committee 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 Committee'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 license and renewal fees for burglar alarm and fire alarm installers and locksmiths, and initial and renewal fees for alarm and locksmithing businesses to raise revenues to meet anticipated expense levels consistent with the Board's statutory obligation. The proposed fees are necessary for the Committee to perform its statutory obligations to the regulated community and to the public at large to maintain professional and ethical business practices in the provision of fire alarm, burglar alarm, and locksmithing services.

The fees established in N.J.A.C. 13:31A-1.4 provide the Committee with its primary source of revenue and are all allocated to the Committee's on-going maintenance costs including: salaries of Committee staff and Committee member per diem compensation; costs incurred in regulating the licensed community, such as reviewing and filing data submitted by licensees and licensed businesses; responding to complaints and concerns of consumers and the public at large; adjudicating disciplinary matters related to licensees and licensed businesses; regulating compliance requirements of licensees; and the general regulation of the licensed community. Moreover, the Committee must reimburse different divisions and bureaus of the State for services rendered and costs prorated to the Committee 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 of Consumer Affairs 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 the Committee's fees have not been increased since 2004. Consequently, an increase in fees is now necessary to ensure that the Committee will generate sufficient funds to cover its expenses for the next triennial renewal period. The Board is proposing to amend N.J.A.C. 13:31A-1.4(a) to increase the initial license fee during the first year of a triennial period from $ 120.00 to $ 180.00, during the second year of a triennial period from $ 80.00 to $ 120.00, and during the third year of a triennial period from $ 40.00 to $ 60.00. The Board is also proposing to increase the fee for a business license 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. The Board is also proposing to increase the triennial renewal fee for licensees from $ 120.00 to $ 180.00 and for business licenses from $ 75.00 to $ 150.00. Consistent with these proposed increases, the Board is proposing to increase the temporary courtesy license and renewal fees from $ 40.00 to $ 60.00.
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 license holder applicants, and licensees and business license holders having their licenses and business licenses renewed. The proposed fee increases will have an impact on the Committee by enabling the Committee 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, regulate the provision of fire alarm burglar alarm, and locksmithing throughout the State, and oversee alarm and locksmithing 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 provision of burglar alarm, fire alarm, and locksmithing services.
 
Economic Impact

The proposed fee increases will have an economic impact on the approximately 2,294 licensed burglar alarm and fire alarm installers and locksmiths, and 671 licensed alarm and locksmithing businesses. These licensees and business license holders will be required to pay increased triennial renewal fees. The proposed fee increases will also have an impact on applicants for initial licensure and business licenses who will be required to pay increased initial license and business license fees. The Board has determined that the proposed fee increases are essential for the Committee to raise the revenue necessary to continue to discharge its statutory obligation to regulate the provision of burglar alarm, fire alarm, and locksmithing services. The proposed fee increases will have an economic impact upon the Committee to the extent that the increased fees are necessary to defray all proper expenses incurred by the Committee 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. 45:5A-23 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 this State.
 
Regulatory Flexibility Analysis

Currently, the Committee regulates approximately 2,294 licensed burglar alarm and fire alarm installers and locksmiths, and 671 licensed alarm and locksmithing businesses. If Committee licensees and business 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, business license holders or upon applicants for licensure or business licenses. 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 and business license holders and applicants for licensure and business licenses to ensure the safety and welfare of the general public in the practice of fire alarm, burglar alarm, and locksmithing 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 proposed amendments would evoke a change in the average costs associated with housing because the proposed rules concern increased fees for licensure and business license fees for those engaged in the practice of providing fire alarm, burglar alarm, and locksmithing services.
 
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 and business license fees for those engaged in the practice of providing fire alarm, burglar alarm, and locksmithing services.
Full text of the proposal follows (additions indicated boldface thus; deletions indicated in brackets [thus]):
 
[page=2461] SUBCHAPTER 1.       GENERAL PROVISIONS
 
13:31A-1.4   Fees
 
(a) The following fees shall be charged by the Committee: