SENATE, No. 1871

STATE OF NEW JERSEY

INTRODUCED MARCH 10, 1997

By Senator CARDINALE

An Act concerning electrical contractors and amending P.L.1962, c.162.

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

    1. Section 2 of P.L.1962, c.162 (C.45:5A-2) is amended to read as follows:

    2. For the purpose of this act, unless otherwise indicated by the context:

    (a) "Act" means this act and the rules and regulations adopted under it;

    (b) "Board" means the Board of Examiners of Electrical Contractors created by section 3 of this act;

    (c) "Department" means the Department of Law and Public Safety;

    (d) "Electrical contractor" means a person who engages in the business of contracting to install, erect, repair or alter electrical equipment for the generation, transmission or utilization of electrical energy;

    (e) "Person" means a person, firm, corporation or other legal entity;

    (f) "Business association" means a limited liability company, limited liability partnership or other legal entity authorized to do business in this State.

(cf: P.L.1962, c.185, s.1)

    2. Section 13 of P.L.1962, c.162 (C.45:5A-13) is amended to read as follows:

    13. (a) Before a license or business permit shall issue fees shall be paid for same in the following amounts:--[(a)] (1) for initial license--$75.00, [(b)] (2) for renewal--$25.00, [(c)] (3) for initial business permit or renewal thereof--$12.50.

    (b) (1) A person seeking issuance or renewal of any business permit shall file with the board an application in writing upon forms prescribed by the board. The application shall designate the person who possesses a license issued pursuant to the provisions of this act and shall contain such other information as the board may prescribe. The application shall be accompanied by the proper fee.

    (2) If the applicant is a natural person, the application shall be signed and sworn to by the applicant. If the applicant is a partnership or other business association, the application shall be signed and sworn to by all natural persons composing such partnership or business association. If the applicant is a corporation, the application shall be signed and sworn to by the president and secretary thereof.

    (3) In order to be issued a business permit to engage in business as an electrical contractor, a licensee shall be the owner in good faith and in his own name of not less that 10 percent of the issued and outstanding voting shares of stock if the applicant is a corporation, or not less than 10 percent of the capital if the applicant is a partnership, or not less than 10 percent of the ownership if the applicant is a business association. The requirement of this paragraph shall apply to all new applicants for a business permit after July 1, 1997, but shall not apply to the renewal of business permits granted on or before July 1, 1997 unless there is a change in control of the entity for which the business permit is sought to be renewed, or a change in the representative who qualified the entity for the business permit sought to be renewed. "Change in control" means the sale or transfer, directly or indirectly, of 25 percent or more of any class of voting shares of stock, securities, capital or ownership of the corporation, partnership or business association.

    (c) A person seeking issuance or renewal of any license shall file with the board an application in writing upon forms prescribed by the board, containing such information as the board shall require to maintain the register provided for in section 8 of this act and to establish the qualifications of the applicant. The application shall be signed and sworn to by the applicant and shall be accompanied by the proper fee.

    (d) The license and business permit periods shall be from July 1 to June 30 of the following year and licenses and business permits shall be renewed on or before July 1 of each year. Renewal shall be governed by the standards applicable to initial issuance. The board may require a re-examination upon failure to apply for a renewal within 30 days of the date of the expiration of any license. Any license expiring while the holder thereof is outside the continental limits of the United States in connection with any project undertaken by the Government of the United States, or while in the service of the Armed Forces of the United States shall be renewed without further examinations upon payment of the prescribed fee at any time within 4 months after such person's return to the United States or discharge

from the armed forces.

(cf: P.L.1968, c.17, s.3)

    3. This act shall take effect immediately.

STATEMENT

    This bill revises existing law to require that a licensed electrician must hold at least a 10 percent interest in a corporation, partnership or business association applying for a business permit to engage in business as an electrical contractor. This requirement is phased in by providing that it applies to new applicants for electrical contractor business permits after July 1, 1997 and to the renewal of electrical contractor business permits on or after July 1, 1997 if there has been a 25 percent or more change in the ownership of the electrical contractor or a change in the representative who qualified the electrical contractor for the business permit being renewed.

Requires licensed electrician to own 10 percent of electrical contractor.