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NEW JERSEY REGISTER
RULE PROPOSALS
VOLUME 41, ISSUE 19
ISSUE DATE: OCTOBER 5, 2009
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
REGULATED BUSINESS SECTION

Proposed Amendments: N.J.A.C. 13:45B-1.2, 7.1, 7.2, 7.3 and 13.5

Personnel Services; Expiration of Licenses and Registrations; Fees

Authorized By: David Szuchman, Director, Division of Consumer Affairs.

Authority: N.J.S.A. 34:8-50, 53 and 54 et seq., and 52:17B-122 and 124.

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

Proposal Number: PRN 2009-307.

Submit written comments by December 4, 2009 to:

David Szuchman, Director

Office of the Director

New Jersey Division of Consumer Affairs

124 Halsey Street

P.O. Box 45027

Newark , NJ 07101

The agency proposal follows:

Summary

The Division of Consumer Affairs (the Division) proposes to amend N.J.A.C. 13:45B-7, the rules pertaining to the expiration of licenses and registrations issued under N.J.A.C. 13:45B to personnel agencies and agents. The Division's practice has been to allow renewal of a license or registration at any time by paying the appropriate renewal fee and a late fee. However, the Division has determined that this practice has been abused and should be discontinued. Therefore, beginning with the license renewal period ending December 31, 2009 and the registration renewal period ending June 30, 2010, a license or registration must be renewed by December 31 or June 30, respectively, or the license or registration will expire. The proposed amendments to N.J.A.C. 13:45B-7.2(a) set forth that requirement. Under proposed new N.J.A.C. 13:45B-7.2(b), the Division will allow a 30-day grace period in which to renew the license or registration by completing a renewal application and paying the appropriate renewal and late fees. During the grace period, the license or registration will remain valid. Proposed new subsection (c) states that continued operation or practice after the 30-day grace period will be deemed unlicensed practice. As set forth in proposed new subsection (d), after the 30-day grace period has passed, the licensee or registration holder may reapply for licensure or registration by submitting an initial licensure or registration application and paying the appropriate fee. The applicant will be subject to all of the Division's requirements for initial licensure or registration, including reexamination for an agent's license. Further, as stated in N.J.S.A. 34:8-45, an entity may not bring or maintain in any court in New Jersey an action for the collection of a fee, charge or commission that arose while its registration or license was expired.

The Division is proposing two amendments to the fee schedule at N.J.A.C. 13:45B-7.1. The first amendment clarifies that the $ 25.00 late fee applies to both renewal of agency licenses and registrations. Second, although the Division believes that the $ 25.00 late fee can be applied to an agent's license, it is proposing a new $ 10.00 late fee since the renewal fee for those licenses is only $ 25.00.

The Division has proposed an amendment to N.J.A.C. 13:45B-7.3, which incorporates the statutory language found at N.J.S.A. 34:8-53. If appropriate, the opportunity to be heard may include a hearing conducted in accordance with N.J.A.C. 13:45, which incorporates the Uniform Administrative Procedure Rules, N.J.A.C. 1:1. In addition, proposed amendments to N.J.A.C. 13:45B-1.2 add entertainment agency in the definition of "license" and correct a citation in the definition of "registration." An amendment has been made to N.J.A.C. 13:45B-13.5 to correct an inaccuracy; registrations for health care service firms, like all registrations, must be renewed by June 30.

The Division has determined that the comment period for this notice of proposal is 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 Division believes that the proposed rule amendments will have a positive impact on job seekers using the services of the various licensees and registrants regulated under N.J.A.C. 13:45B. First, the proposed rule amendments will ensure that only those firms or agents holding unexpired licenses or registrations are allowed to operate or practice and are maintaining a bond, if appropriate. Second, those that do not renew in a timely fashion will be required to complete the Division's initial licensure or registration application, which will allow the Division to seek additional information about an agency that may prove beneficial to the protection of job seekers.

Licensees and registrants who do not renew in a timely manner are likely to react negatively to the proposed rule amendments because they now will be required to complete a more lengthy initial application in order to renew. Agents may react negatively because they will be subject to reexamination. The Division believes, however, that correcting the [page=3784] procedures used in the past is necessary to protect job seekers as set forth above.

Economic Impact

The proposed rule amendments will have no economic impact on the general public. The proposed rule amendments will have an economic impact on those agencies that fail to renew their licenses or registrations within the 30-day grace period. They will be required to comply with the requirements for initial licensure and pay the applicable fees. Agents who fail to renew within the 30-day grace period, will be required to comply with the requirements for initial licensure, including the cost of reexamination. However, under the proposed amendments the late renewal fee for an agent will decrease.

Federal Standards Statement

A Federal standards analysis is not required because the proposed rule amendments are subject to State statutory requirements and are not subject to any Federal requirements.

Jobs Impact

The purpose behind the proposed rule amendments is to be certain that the entities and agents regulated by N.J.A.C. 13:45B renew their licenses and registrations in a timely manner. The Division does not believe that the requirement to renew in a timely manner will result in the creation or loss of any jobs in the State.

Agriculture Industry Impact

The Division does not believe that the proposed rule amendments will have any impact on the agriculture industry in the State.

Regulatory Flexibility Analysis

If, for purposes of the Regulatory Flexibility Act, N.J.S.A. 52:14B-16 et seq., the approximately 2,067 licensees and registrants regulated under N.J.A.C. 13:45B are considered "small businesses" then the following analysis applies. All licenses and registrations must be renewed prior to their expiration date by completing a renewal application and paying the appropriate fee. If a license or registration is not renewed prior to the expiration date, the licensee or registrant will have a 30-day grace period in which to comply by completing the renewal application and paying the appropriate renewal and late fees. After the 30-day grace period, a licensee or registrant may not practice or operate if its license or registration has not been renewed. In order to renew after the grace period, an initial application must be completed and appropriate license or registration fee submitted. Agents will be required to retake the examination.

The Division considers the proposed rule amendments necessary to protect job seekers and the public. Compliance requirements do not differ based on the size of the business to ensure that all services covered by these proposed rule amendments are provided uniformly throughout the State. The Division does not believe that any professional services will be needed to comply with the rules.

Smart Growth Impact

The Division does not believe that the proposed rule amendments will have an impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Housing Affordability Impact

The proposed rule amendments will have an insignificant impact on affordable 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 rule amendments concern license and registration renewal for entities and agents providing employment services in the State of New Jersey .

Smart Growth Development Impact

The proposed rule 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 in New Jersey because the proposed rule amendments concern the license and registration renewal for entities and agents providing employment services in the State of New Jersey.

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

SUBCHAPTER 1. PURPOSE AND SCOPE; DEFINITIONS

13:45B-1.2 Definitions

The following words and terms, when used in this chapter and in license application forms and licenses, shall have the following meanings unless the context clearly indicates otherwise:

. . .

"License" means a license issued by the Director to any person:

1. To carry on the business of an employment agency, career counseling service, [or] booking agency or entertainment agency ; and/or

2. (No change.)

. . .

"Registration" means a registration issued by the Director to any person:

1. To carry on the business of a consulting firm, temporary help service firm, career consulting or outplacement organization, job listing service or prepaid computer job matching service or health care service firm as defined in N.J.A.C. 13:45B-[14.2] 13.2 ; or

2. (No change.)

. . .

SUBCHAPTER 7. FEES AND EXPIRATION DATES

13:45B-7.1 Fee schedule

The following fees shall be charged by the Division:

. . .

Late fee for renewals of agency license or registration . . . . . $ 25.00

Late fee for renewal of agent license . . . . . . . . . . . . . . . . . . . $ 10.00

13:45B-7.2 [License] Annual license and registration renewal; license and registration expiration

(a) [All licenses] Licenses and registrations issued by the Division under this chapter shall be renewed annually. Licenses shall expire on January 1 of [the] each year [following their issuance.] [(b) All] and registrations shall expire on July 1 of each year. A licensee or registrant that seeks license or registration renewal shall submit a renewal application and the license or registration fee set forth in N.J.A.C. 13:45B-7.1 prior to the expiration date of the current license or registration.

(b) If a license or registration is not renewed prior to its expiration date, the license or registration may be renewed within 30 days of its expiration by submitting a renewal application, the license or registration fee and the late fee as set forth in N.J.A.C. 13:45B-7.1. During this 30-day period, the license or registration shall be valid and the licensee or registrant shall not be deemed to be operating or practicing without a license or registration, as applicable.

(c) A license or registration that is not renewed within 30 days of its expiration date shall expire. Any licensee or registrant that continues to operate or practice with an expired license after 30 days following the license expiration date shall be deemed to be engaged in unlicensed practice.

(d) A licensee or registration holder whose license or registration has expired pursuant to this section may reapply for licensure or registration by fulfilling the following requirements:

1. Completing an application for initial licensure or registration;

2. Paying the annual license or registration fee as set forth in N.J.A.C. 13:45B-7.1; and

3. In the case of employment agents, taking and passing a reexamination, as required under N.J.A.C. 13:45B-4.1.

13:45B-7.3 Standards for issuance and renewal of licenses and registrations

(a) (No change.)

(b) Prior to any suspension, revocation or refusal to renew a license or registration, the licensee or registrant shall have [the right to request a hearing, which shall be conducted pursuant to the Uniform Administrative Procedure Rules, N.J.A.C. 1:1] an opportunity to be heard, which may, if appropriate, include a hearing conducted [page=3785] pursuant to N.J.A.C. 13:45 . The Director may, if he or she finds it to be in the public interest, suspend a license for any period of time that he or she determines to be proper or assess a penalty in lieu of suspension, or both, and may issue a new license, notwithstanding the revocation of a prior license provided that he or she finds the applicant to have become entitled to a new license.

SUBCHAPTER 13. HEALTH CARE SERVICE FIRMS

13:45B-13.5 Registration renewal

(a) A health care service firm shall renew registration [on or] prior to July 1 of each year by submitting the following, on forms provided by the Director.

1.-2. (No change.)

   
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