LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 3044

STATE OF NEW JERSEY

218th LEGISLATURE

 

DATED: NOVEMBER 1, 2018

 

 

SUMMARY

 

Synopsis:

“Pet Groomers Licensing Act;” designated as “Bijou’s Law.”

Type of Impact:

Annual State revenue and expenditure increases to the General Fund.

Agencies Affected:

Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

Annual State Expenditure Increase

Indeterminate

 

Annual State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates that this bill will increase annual State expenditures and revenues by indeterminate amounts.  The OLS cannot assess the direction of the net effect of the two increases given the absence of information on the future costs of regulating pet grooming and on future license fee and penalty collections. 

 

·         The State will incur an indeterminate annual increase in operating expenditures associated with the licensure and regulation of pet groomers and pet grooming schools, including the cost of establishing and operating the new nine-member New Jersey State Board of Pet Groomers, undertaking a public information campaign, and maintaining a toll-free telephone number for consumers to make inquiries or complaints. 

 

·         Additional annual State revenue will accrue from indeterminate license fee payments for the new pet grooming licenses, indeterminate fee payments for the registration of pet grooming businesses, and indeterminate fine and penalty payments from violators of statutory and regulatory requirements applicable to the newly licensed profession. 

 

 

BILL DESCRIPTION

 

      The bill provides for the licensing of pet groomers and pet grooming schools and the registration of pet grooming businesses.  The State currently does not regulate the profession. 

      Beginning on the 360th day after the appointment of the members of the new State Board of Pet Groomers, individual pet groomers and pet grooming schools will need a board-issued biennial license to conduct business 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, licensees will have to pay a $75 fee for an initial two-year license and a $50 fee for a two-year renewal license. 

      The bill establishes the nine-member New Jersey State Board of Pet Groomers under the Division of Consumer Affairs in the Department of Law and Public Safety.  The board will issue and renew professional licenses; create a record of licensed professionals; develop the pet grooming curriculum to be used in the schools; establish continuing education standards for licensed professionals; approve programs offering continuing education credits; undertake a public information campaign; maintain a toll-free telephone number for consumers to make inquiries or complaints; and set the charges for examinations, business registration and renewal, and other services.  Board members receive no compensation for their services, but are reimbursed for the expenses they incur in the performance of their duties.  In addition, board members receive the office and meeting facilities and personnel they require for the proper conduct of board business.

      The board 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 by indeterminate amounts.  The OLS cannot assess the direction of the net effect of the two increases given the absence of information on the future costs of regulating the pet grooming profession and on future license and registration fee and penalty collections. 

      State Revenue Increase:  The bill will increase annual State revenue collections from licensure fees, fines, and penalties by indeterminate amounts. 

      The OLS cannot quantify the licensure fee payments the board will collect from the biennial licensing requirement because the number of license issuances is unknown. 

      On October 22, 2018, the New Jersey Professional Pet Groomers Association testified before the Assembly Appropriations Committee that approximately 6,000 pet groomers were currently residing in New Jersey.  Pet groomers and pet grooming schools will need a board-issued biennial license to conduct business in New Jersey under the bill with licensees required to pay $75 for an initial two-year license and then $50 for each two-year license renewal.  It is unclear to what extent the license fee and the new educational requirements will deter current pet groomers from continuing to provide pet grooming services under the planned licensure regime.

      Moreover, the OLS anticipates that the State may annually collect indeterminate fine and penalty payments from violators of statutory and regulatory requirements applicable to the newly licensed profession.  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.   

      State Expenditure Increase:  The bill newly establishes the nine-member New Jersey State Board of Pet Groomers under the Division of Consumer Affairs in the Department of Law and Public Safety to newly regulate pet grooming professionals and businesses.  The board’s regulatory activities will increase annual division operating expenses.  The OLS, however, cannot determine the increase’s magnitude on account of uncertainty regarding the number of professionals and businesses that will be regulated and operational decisions the board will make to implement the bill.  In any event, the nine board members will serve without compensation and will only be reimbursed for the expenses they incur in the performance of their duties. 

 

 

Section:

Law and Public Safety

Analyst:

Ian Siracusa

Deputy Counsel

Approved:

Frank W. Haines III

Legislative Budget and Finance Officer

 

 

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