Rule Proposal

Proposed Amendment: N.J.A.C. 13:36-1.6

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Fees and Charges

Authorized By: State Board of Mortuary Science, Quin Archer, Executive Director.

Authority: N.J.S.A. 45:7-38.

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

Proposal Number: PRN 2017-149.

Submit written comments by October 6, 2017, to:

Quin Archer, Executive Director
Board of Mortuary Science
124 Halsey Street
Post Office Box 45009
Newark, New Jersey 07101
or electronically at: www.njconsumeraffairs.gov/Proposals/Pages/default.aspx.

The agency proposal follows:
Summary

The State Board of Mortuary Science (Board) proposes to amend N.J.A.C. 13:36-1.6, 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 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 practitioners, the initial certificate of registration for mortuaries, and the renewal fees for licensees and mortuaries to raise revenues to meet anticipated expense levels consistent with the Board's statutory obligations. The proposed fees are necessary for the Board 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 mortuary science services.

The fees established in N.J.A.C. 13:36-1.6 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 in 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 1999. Consequently, an increase in fees is now necessary 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. 13:36-1.6(a) to increase the initial license fee to be paid during the first year of a biennial period from $ 250.00 to $ 350.00, and during the second year of a biennial period from $ 125.00 to $ 175.00. The Board is also proposing to increase the fee for a certificate of registration for a mortuary from $ 500.00 to $ 700.00 to be paid during the first year of a biennial period, and from $ 250.00 to $ 350.00 in the second year of a biennial period. In addition, the Board is proposing to increase the renewal fee for practitioners from $ 250.00 to $ 350.00, and for mortuaries from $ 500.00 to $ 700.00. The Board is also proposing to increase the inactive paid renewal fee for practitioners from $ 125.00 to $ 170.00.
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 mortuary applicants and licensees and mortuaries having their licenses and certificates of registration renewed. 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 mortuary science throughout the State, and oversee mortuaries 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 mortuary science.

Economic Impact

The proposed fee increases will have an economic impact on the 1,637 individual licensees and 753 mortuaries. These licensees and businesses 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. In addition, the proposed fee increases may have an impact on consumers to the extent that mortuaries pass on the fee increases to their customers. The Board notes that it has not increased its fees since 1999, and has determined that the proposed fee increases are essential for the Board to raise the revenue necessary to continue to discharge its statutory obligations to regulate the practice of mortuary science and oversee mortuaries. 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. 45:7-32 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 Board regulates 1,637 individual licensees and 753 mortuaries. If Board license holders and mortuaries 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.

[page=2463] The proposed amendments to the fee schedule do not impose any reporting, recordkeeping, or compliance requirements upon licensees, mortuaries, or upon applicants for licensure or registration. 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 above. The Board believes that the proposed amendments should be uniformly applied to all licensees, applicants for licensure, mortuaries, and practitioner and mortuary applicants to ensure the health, safety, and welfare of the general public in the practice of mortuary science 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 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 licensure and certificate of registration fees for practitioners of mortuary science and mortuaries.

Smart Growth Development Impact Analysis

The proposed amendments will have an insignificant impact on smart growth and there is an extreme unlikelihood that the proposed 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 because the proposed amendments concern increased fees for licensure and certificate of registration fees for practitioners of mortuary science and mortuaries.
Full text of the proposal follows (additions indicated in boldface thus; deletions indicated in brackets [thus]):

SUBCHAPTER 1. ADMINISTRATION

13:36-1.6 Fees and charges

(a) The Board shall charge the following fees:

1. (No change).

2. Initial license fee:

i. During the first year of a biennial renewal [$ 250.00]
period.................................... $ 350.00

ii. During the second year of a biennial renewal [$ 125.00]
period.................................... $ 175.00

3. Initial certificate of registration for a mortuary:

i. During the first year of a biennial renewal [$ 500.00]
period.................................... $ 700.00

ii. During the second year of a biennial renewal [$ 250.00]
period.................................... $ 350.00

4.-8. (No change.)
9. Biennial license renewal fees:

i. Practitioner.............................. [$ 250.00]
$ 350.00

ii. Mortuary certificate of registration...... [$ 500.00]
$ 700.00

iii. (No change.)

iv. Inactive paid license renewal............. [$ 125.00]
$ 170.00

10.-15. (No change.)