SENATE, No. 2352

STATE OF NEW JERSEY

218th LEGISLATURE

 

INTRODUCED APRIL 5, 2018

 


 

Sponsored by:

Senator  ANTHONY R. BUCCO

District 25 (Morris and Somerset)

 

 

 

 

SYNOPSIS

     Requires Attorney General provide active supervision of certain occupational and professional licensing boards.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning the State supervision of certain occupational and professional licensing boards and supplementing P.L.1978, c.73 (C.45:1-14 et seq.).

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.    a.  Notwithstanding the provisions of any State law, rule, or regulation to the contrary, the Attorney General or the Attorney General’s designee shall, in order to provide antitrust immunity to a board consistent with federal law, provide active supervision of any board for which:

     (1)   the majority of members are active market participants of the profession or occupation regulated by that board; and

     (2)   but for a vacancy or vacancies in the membership of the board, that board would otherwise have a majority of members that are active market participants. 

     The Attorney General or the Attorney General’s designee shall review, and is authorized to amend, repeal, or set aside, any regulation, action, or decision made by a board that is subject to active supervision pursuant to paragraph (1) or (2) of this subsection, that the Attorney General or the Attorney General’s designee has determined to have the potential to displace competition and that is inconsistent with and does not further or promote clearly articulated affirmatively expressed State policy or the inherent, logical, or ordinary result of that policy.

     b.    As used in this section:

     “Active market participant” means a member of a board who:

     (1)   is licensed or certified by the board; or

     (2)   owns or shares ownership in a business or professional practice that provides any service that is subject to the regulatory authority of the board.

     “Board” means a board, committee, commission, or any other entity created by law to license or otherwise regulate a profession or occupation in this State.

 

     2.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill directs the Attorney General or the Attorney General’s designee to provide active supervision of any professional or occupational licensing board if the membership of the board is comprised of a majority of active market participants, or if the board’s membership would be comprised of a majority of active market participants but for a vacancy or vacancies in membership.  The bill requires the Attorney General to review any regulation, action, or decision made by a board, and authorizes the Attorney General to amend, repeal, or set aside any regulation, action, or decision made by that board that is determined to have the potential to displace competition and that is inconsistent with and does not further or promote clearly articulated affirmatively expressed State policy or the inherent, logical, or ordinary result of that policy.

     The bill defines “active market participant” as a board member who is licensed or certified by that board, or who owns or shares ownership in a business or professional practice that provides any service that is subject to the regulatory authority of that board.  The bill defines “board” as a board, committee, commission, or any other entity created by law to license or otherwise regulate a profession or occupation in this State. 

     The bill is intended to provide antitrust immunity to professional and occupational licensing boards consistent with federal law, specifically the decision of the United States Supreme Court in North Carolina State Board of Dental Examiners v. Federal Trade Commission.  In that decision the Court held that if a controlling number of a board’s members are active market participants in the profession or occupation the board regulates, then the board may invoke state-action antitrust immunity only if it is subject to active supervision by the state.  The provisions of this bill direct the Attorney General to provide active supervision of any professional or occupational licensing board that is subject to the provisions of the bill.