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NEW JERSEY REGISTER
VOLUME 34, NUMBER 9
MONDAY, MAY 6, 2002
RULE PROPOSAL
LAW AND PUBLIC SAFETY
DIVISION OF CONSUMER AFFAIRS
NEW JERSEY BOARD OF EXAMINERS OF ELECTRICAL CONTRACTORS
Activities Requiring Licensure and Business Permit

Proposed New Rule: N.J.A.C. 13:31-1.20

Authorized By: New Jersey Board of Examiners of Electrical Contractors, Barbara Cook, Executive Director.

Authority: N.J.S.A. 45:5A-6.

Calendar Reference: See Summary below for explanation of exception to the calendar requirements.

Proposal Number: PRN 2002-164.

Submit comments by July 5, 2002 to:

Barbara Cook, Executive Director
New Jersey Board of Examiners of Electrical Contractors
124 Halsey Street PO Box 45006
Newark, New Jersey 07101

The agency proposal follows:

Summary

Pursuant to its general rulemaking authority in N.J.S.A. 45:5A-6, the New Jersey Board of Examiners of Electrical Contractors (the Board) proposes a new rule at N.J.A.C. 13:31-1.20 to clarify who may properly engage in the installation, maintenance or servicing of wires utilized to supply power from the customer's side of the meter to an appliance on the customer's premise. The Board proposes this new rule in response to the recent deregulation of the electric power industry, pursuant to P.L. 1999, c.23. As a result of electric deregulation, some public utilities may seek to provide services to retail customers of electric service that have traditionally been provided by Board licensees. The Board believes that the provision of services to retail customers by utility employees, who up to now have been unlicensed, and perhaps unfamiliar with the standards of the National Electrical Code which govern electrical work performed on the customer's side of the meter, may create safety issues for the citizens of New Jersey. The Board, therefore, proposes the new rule in order to clarify that such utility employees shall be licensed by the Board if they are to work from the service point of a customer's premises. The Board proposes this rule in order to protect the health, welfare and safety of New Jersey citizens.

In proposed subsection (a), the Board provides definitions for the terms "service point" and "premises wiring." The definitions have been taken from the most recent edition of the National Electrical Code, in order to ensure consistency as to how the terms are used in the industry. In proposed subsection (b), the Board provides that only a Board licensee who holds a business permit may install, maintain or service wiring for the supplying of power from the service point on a customer's premise to an appliance used by the customer for the purpose of light, heat or power. Subsection (b) further provides that the requirements of the subsection do not apply to those individuals and entities that are exempt from licensure, as provided in N.J.S.A. 45:5A-18 and subsection (c). Subsection (c) provides that installation, maintenance or servicing of wiring for the supplying of power on a customer's premises to an appliance or other equipment used for light, heat or power may only be performed by an employee of a public utility if the employee has obtained a license to engage in electrical contracting, or is supervised by such a licensed person, and the utility has obtained a business permit, pursuant to the requirements of N.J.S.A. 45:5A-9.

The Board has determined that the comment period for this proposal shall be 60 days; therefore, pursuant to N.J.A.C. 1:30-3.3(a)5, this proposal is excepted from the rulemaking calendar requirement.

Social Impact

The Board believes that the proposed new rule will have a positive impact upon New Jersey citizens by ensuring that only those individuals who have sufficient knowledge and experience working under the standards of the National Electrical Code will be permitted to install, maintain or service wiring for the supplying of power beyond the meter on the customer's premises, thus safeguarding the health, welfare and safety of the general public. In addition, the proposed new rule may have an impact upon public utilities and their employees, if a public utility wishes to engage in the installation, maintenance or servicing of wires beyond the meter on the customer's premises. Utilities that wish to engage in such activity must first obtain a business permit from the Board. Moreover, under the proposed new rule, a public utility employee must obtain a license from the Board prior to installing, maintaining or servicing such wiring beyond the meter on the customer's premises, or must work under the supervision of a person who holds such a license.

Economic Impact

The proposed new rule will have an economic impact upon public utilities that wish to install, maintain or service wiring beyond the service point on the customer's premises. Such utilities will be required to obtain a business permit from the Board pursuant to the requirements of N.J.S.A. 45:5A-9. As a result, public utilities that seek to provide such services will be required to pay the business permit fee set forth at N.J.A.C. 13:31-1.11(a)6, as well as the business permit renewal fee set forth at N.J.A.C. 13:31-1.11(a)7, which must be paid at the beginning of each triennial registration period. In addition, the proposed new rule will also have an economic impact upon public utility employees who wish to perform installation, maintenance or servicing of wiring beyond the service point on a customer's premise because such employees will be required to obtain a license from the Board pursuant to the requirements of N.J.S.A. 45:5A-9. Such employees will be economically impacted by the proposed new rule to the extent that they will be required to remit the license fee set forth at N.J.A.C. 13:31-1.11(a)2, as well as the license renewal fee set forth at N.J.A.C. 13:31-1.11(a)3, which must be paid on a triennial basis. Some employees may also incur costs associated with obtaining the education and training which are necessary to qualify an applicant for licensure pursuant to N.J.A.C. 13:31-1.2, if they do not currently possess such education and training.

The Board believes that any economic impact upon public utilities and their employees that may be caused by the proposed new rule will be outweighed by the Board's need to ensure the health, safety and welfare of New Jersey consumers in the installation, maintenance and servicing of wiring beyond the service point on the consumer's premises.

Federal Standards Statement

A Federal standards analysis is not required because the proposed new rule is governed by N.J.S.A. 45:5A-1 et seq., and is not subject to any Federal standards or requirements.

Jobs Impact

The Board believes that the proposed new rule may have an impact upon jobs in the State. If, as a result of the proposed new rule, public utilities require their employees to be Board licensees or to obtain such licensure in order to install, maintain or service wiring for the supplying of power from the service point on a customer's premises to appliances or other equipment, persons who may otherwise have been qualified to obtain employment with such utilities may no longer be eligible, if they are unable to satisfy Board requirements for licensure.

Agriculture Industry Impact

The Board does not believe that the proposed new rule will have any impact on the agriculture industry of the State.

Regulatory Flexibility Analysis

The Regulatory Flexibility Act (the Act), N.J.S.A. 52:14B-16 et seq., requires the Board to give a description of the types and an estimate of the number of small businesses to which the proposed new rule willapply. Currently, the Board has approximately 9,550 active licensees and approximately 6,600 permit holders. If, for purposes of the Act, Board licensees and permit holders are considered "small businesses" within the meaning of the Act, then the following analysis applies.

The Act requires the Board to set forth the reporting, recordkeeping and other compliance requirements of the proposed new rule, including the kinds of professional services likely to be needed to comply with the requirements. The Act further requires the Board to estimate the initial and annual compliance costs of the proposed new rule, to outline the manner in which it has designed the proposed new rule to minimize any adverse economic impact upon small businesses and to set forth whether the proposed new rule establishes differing compliance requirements for small businesses.

The proposed new rule does not impose reporting or recordkeeping requirements upon licensees or permit holders. The proposed new rule, however, does impose compliance requirements upon licensees and permit holders. N.J.A.C. 13:31- 1.20(b) requires that only a licensee who holds a business permit may install, maintain or service wiring for the supplying of power from the service point on a customer's premises to an appliance or other equipment used by the customer for the purpose of light, heat or power, except as provided in N.J.S.A. 45:5A-18 and subsection (c). In addition, subsection (c) of the proposed new rule provides that in order for a utility to install, maintain or service such wiring on the customer's side of the service point, the utility must obtain a business permit and its employees, who perform such services, must obtain a license or work under the supervision of a person who has a license, pursuant to the requirements of N.J.S.A. 45:5A-9.

No additional professional services will be needed to comply with the proposed new rule, nor will the proposed new rule impose any additional compliance costs upon licensees and permit holders. The proposed new rule, however, will impose compliance costs upon public utilities that wish to perform installation, maintenance or servicing of wiring beyond the service point on a customer's premises, as well as upon the utility employees that will be performing such services. The compliance costs for the public utilities and their employees are discussed in the Economic Impact above. Because the Board believes that the proposed new rule will further the health, welfare and safety of the general public, the rule will be uniformly applied and, therefore, has not provided differing compliance requirements for any licensees or permit holders based on the size of the business.

Smart Growth Impact

The Board does not believe that the proposed new rule will have any impact upon the achievement of smart growth or upon the implementation of the State Development and Redevelopment Plan.

Full text of the proposed new rule follows:

<< NJ ADC 13:31-1.20 >>

<<+13:31-1.20 Activities requiring licensure and business permit+>>

<<+(a) The following words and terms, when used in this section, shall have the following meaning unless the context indicates otherwise.+>>

<<+"Service point" means the point of connection between the facilities of the public utility serving a customer and the premises wiring.+>>

<<+"Premises wiring" means interior and exterior wiring, including power, lighting, control and signal circuit wiring, together with all of their associated hardware, fittings and wiring devices, both permanently and temporarily installed, that extends from the service point of utility conductors or source of power such as a battery, a solar photovoltaic system, or a generator, transformer or converter windings, to the outlets. Premises wiring does not include wiring internal to appliances, fixtures, motors, controllers, motor control centers, and similar equipment.+>>

<<+(b) Installing, maintaining or servicing wiring for the supplying of power from the service point on a customer's premises to an appliance or other equipment used by the customer for the purpose of light, heat or power, shall be performed only by a licensee holding a business permit, except as provided in N.J.S.A. 45:5A-18 and (c) below.+>>

<<+(c) Installing, maintaining or servicing wiring for the supplying of power from the service point on a customer's premises to an appliance or other equipment used by the customer for the purpose of light, heat or power may be performed by an employee of a public utility offering services that relate to an end user's premises wiring and determined by the Board of Public Utilities to be competitive, provided that the employee has obtained a license from the Board or is working under the supervision of such a licensee and the utility has obtained a business permit from the Board pursuant to N.J.S.A. 45:5A- 9.+>>

 

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Posted May 6, 2002