LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 224

STATE OF NEW JERSEY

217th LEGISLATURE

 

DATED: NOVEMBER 20, 2017

 

 

SUMMARY

 

Synopsis:

Provides for licensing of pool and spa service contractors, and pool and spa builders and installers.

Type of Impact:

Annual State revenue and expenditure increases to the General Fund.

Agencies Affected:

Board of Examiners of Electrical Contractors in the Department of Law and Public Safety.

 

Office of Legislative Services Estimate

Fiscal Impact

FY 2018

FY 2019 

FY 2020

 

Annual State Expenditure Increase

Indeterminate – See comments below

 

Annual State Revenue Increase

Indeterminate – See comments below

 

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that this bill will increase annual State expenditures and revenues.  Although the OLS cannot project the magnitude of the increases, it expects their net effect on State finances to be largely offsetting.

·         The Board of Examiners of Electrical Contractors in the Department of Law and Public Safety will incur an indeterminate annual increase in operating expenditures associated with the registration and regulation of pool and spa service contractors and pool and spa builders and installers, including the minimal cost of establishing and operating the new seven-member Pool and Spa Service Contractors and Pool and Spa Builders and Installers Advisory Committee.

·         Additional annual State revenue will accrue from indeterminate fee payments for the new pool and spa service contractor and pool and spa builder and installer licenses, and indeterminate fine and penalty payments from violators of regulatory requirements applicable to the newly licenses professions.  The bill requires the board to set registration and renewal fees in amounts sufficient to offset the cost of regulation. 

BILL DESCRIPTION

 

            The First Reprint to the Assembly Committee Substitute for Assembly Bill No. 224 of 2016 provides for the licensing of pool and spa service contractors and pool and spa builders and installers.  The State currently does not regulate the professions.

      Beginning on the 360th day after the appointment and qualification of the members of the new Pool and Spa Service Contractors and Pool and Spa Builders and Installers Advisory Committee, pool and spa service contractors and pool and spa builders and installers will need a three-year license to practice in New Jersey.  In return for the right to operate in this State and to defray the expenses incurred in the implementation of the bill, the professionals will have to pay a licensure fee every three years.

      The bill extends the jurisdiction of the existing Board of Examiners of Electrical Contractors in the Department of Law and Public Safety to the regulation of pool and spa service contractors and pool and spa builders and installers.  The board may delegate the power to regulate the professions to a seven-member Pool and Spa Service Contractors and Pool and Spa Builders and Installers Advisory Committee that the bill newly establishes under the board. 

      The board, or by delegation the newly established advisory committee, will issue and renew professional licenses and identification cards; maintain and publish a record of licensed professionals; adopt a code of ethics for licensees; establish continuing education standards for licensed professionals; review the advertising of licensees; and set the charges for applications, examinations, licensures, renewals, and other services.  

      The board and committee will operate under the provisions of N.J.S.A.45:1-14 et seq., which authorize professional and occupational boards to suspend or revoke any license, levy unspecified fines, or impose unspecified civil penalties if a board concludes that an individual has practiced a regulated profession without a license or has otherwise violated statutory or regulatory provisions applicable to the profession.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill will increase annual State General Fund expenditures and revenues.  Although the OLS cannot project the magnitude of the increases, it expects their net effect on State finances to be largely offsetting.

      The bill requires the Board of Examiners of Electrical Contractors in the Department of Law and Public Safety to regulate pool and spa service contractors, and pool and spa builders and installers.  The regulatory activities will increase annual board operating expenses.  The OLS, however, cannot determine the increase’s magnitude because of uncertainty regarding the number of professionals who will be regulated and operational decisions the board will make to implement the bill.

      The additional annual operating expenses will include those of the new seven-member Pool and Spa Service Contractors and Pool and Spa Builders and Installers Advisory Committee.  According to N.J.S.A.45:1-2.5, the members of the several State professional and occupational boards receive $25 per diem or an amount to be determined by the Attorney General, not exceeding $2,500 per year.  Compensating seven advisory committee members at the annual $2,500 maximum would increase annual Board of Examiners of Electrical Contractors operating expenses by $17,500.  In addition, N.J.S.A.45:1-3 entitles board members to the reimbursement of their travel and other expenses incurred in the performance of their duties.

      Irrespective of the precise magnitude of the bill’s additional annual operating expenditures, the legislation instructs the board to set the amount of fees for pool and spa service contractor and pool and spa builder and installer licenses, license renewals, applications, examinations, and other services provided by the board and the advisory committee so that the added cost of industry regulation and the added fee revenue largely offset one another.

      Moreover, the OLS anticipates that the State may annually collect indeterminate penalty payments from violators of regulatory requirements.  The OLS, however, cannot project the amount the State will collect because the bill does not specify the level of any fine or penalty and because the OLS has no information on which to base an estimate of the number and magnitude of future penalty assessments and payments.

 

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Senior Fiscal Analyst

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

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