LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

SENATE, No. 612

STATE OF NEW JERSEY

215th LEGISLATURE

 

DATED: OCTOBER 18, 2012

 

 

SUMMARY

 

 

 

Synopsis:

Provides for licensure of elevator, escalator, and moving sidewalk mechanics by the State board.

Type of Impact:

Indeterminate Expenditure Offset by Licensure Revenues.

Agencies Affected:

Department of Law and Public Safety; Division of Consumer Affairs.

 

Office of Legislative Services

Fiscal Impact

Year 1

Year 2

Year 3

 

State Cost And Revenue

Indeterminate Expenditure Offset by Licensure

 

 

 

 

        The Office of Legislative Services (OLS) notes that newly established boards through the Division of Consumer Affairs are often offset by the new licensing revenue.

        Creates an Elevator, Escalator and Moving Walkway Mechanics Licensing Board which would be responsible for licensing mechanics who install, construct, alter, maintain, service, repair, or test elevators, escalator, and moving walkways.†

        Permits the board to charge fees for license application, examination, and renewal.

        Grants reciprocity to those persons licensed in other states in the elevator trades covered under the bill.

        Notes that certain members of the board shall serve without compensation; however, the bill is silent regarding the compensation or reimbursement for reasonable expenses of the other board members.

        Provides a delayed effective date of six months for the implementation of the billís licensing requirements, requirements regarding the securing of bonds, and mandates that contractors must subcontract all elevator, escalator, and certain moving installation work.

BILL DESCRIPTION

 

††††† Senate Bill No. 612 (2R) of 2012 would establish the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board for the purpose of granting licenses to those persons engaged in the business of installing, constructing, altering, servicing, repairing, testing, or maintaining elevator devices.

††††† This bill would require all mechanical and maintenance work on elevators to be performed by persons licensed by a State board, as having the requisite skill, experience, and knowledge to perform these critical jobs where the public safety could be in jeopardy. The bill prohibits a person from advertising as a licensed elevator mechanic if the individual has not been licensed by the State.

††††† The elevator, escalator, and moving walkway mechanicís license examination will be substantially uniform and designed so as to establish the competence and qualifications of the applicant to perform the type of work for which licensure is sought. The bill permits the examination to mimic an examination promulgated by a national organization.

††††† The license examination may be waived if the applicant provides the following:

 

        Proof of acceptable work experience in the elevator, escalator, and moving walkway industry in the installation, construction, alteration, repair, maintenance, or testing, or any combination thereof, as verified through previous and current employers and copies of filed income tax returns or W-2 or 1099 forms, and proof of successful passage of an examination for elevator mechanics offered by a nationally recognized training program for the elevator industry, such as the National Elevator Industry Educational Program or an equivalent program; or

        Proof of acceptable work experience by the applicant in the elevator, escalator, and moving walkway industry in the installation, construction, alteration, repair, maintenance, or testing, or any combination thereof, without direct and immediate supervision, within the State for at least three years, as verified by previous and current employers or through building permits reflecting the applicant's name, or a company for which the applicant was an agent, or through proof of insurance or bonds issued covering the applicant, or letters of reference from construction code officials who have examined the applicant's work.

 

††††† The bill also grants reciprocity to those persons licensed in other states in the elevator trades covered under the bill.

 

 

FISCAL ANALYSIS

 

OFFICE OF LEGISLATIVE SERVICES

 

The OLS notes that newly established boards through the Division of Consumer Affairs are often offset by the new licensing revenue.

††††† In the prior version of this bill, Senate Bill No. 612 (1R), the Division of Consumer Affairs, in the Department of Law and Public Safety noted that there was not an approximate figure available for the number of mechanics who would apply for licensure; however, the division did provide an estimate based on the history of boards in which a boardís expenditures were offset by board revenues.† In the prior version of this bill, the Office of Management and Budget (OMB) concurred with the Division of Consumer Affairs that boards are historically self-sufficient. The OMB noted further, however, that although costs may be incurred, these expenditures would need to be offset using revenue generated by the new board and typically would not receive an appropriation during the start-up phase.

 

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Senior Fiscal Analyst

Approved:

David J. Rosen

Legislative Budget and Finance Officer

 

 

This fiscal estimate has been prepared pursuant to P.L. 1980, c.67 (C.52:13B-6 et seq.).