Senator Steve Oroho’s bill seeking to help end the practice of professional and occupational license lending earned Senate approval today.

Sen. Steve Oroho’s bill seeking to help end the practice of professional and occupational license lending earned Senate approval. (SenateNJ.com)

Oroho’s legislation, S-4119, would significantly increase penalties for the transfer or lending of licenses issued by authorized boards in the state.

“The laws against license lending are clear, but some contractors continue to cut corners to save time and money,” said Oroho (R-24). “The current penalties are not sufficient to discourage the violators. The unethical practice is an all-too-common occurrence that can result in unnecessary health and safety risks.”

Oroho introduced the measure after working with representatives of the skilled trades who voiced concerns about contractors, especially those from out of state, who hire individuals with legitimate license numbers but continue to utilize their own uncertified employees to perform the work.

“There’s no question about their intent,” Oroho said. “These companies want to skirt the rules at the expense of money and jobs for authorized in-state trades workers. This bill will help close the loophole and eliminate the temptation with more strident punishment.”

Under the bill, civil penalties for the unauthorized transfer of an occupational license would increase to $15,000 for the first violation and not more than $25,000 for each additional violation.

Oroho’s legislation would apply to workers regulated by the Board of Examiners of Electrical Contractors; the Elevator, Escalator, and Moving Walkway Mechanics Licensing Board; the Fire Alarm, Burglar Alarm and Locksmith Advisory Committee; the Licensed Master Hearth Specialist Advisory Committee; the State Board of Examiners of Heating, Ventilating, Air Conditioning and Refrigeration Contractors; the State Board of Examiners of Master Plumbers; or other State entities created to regulate a skilled trade occupation in the Division of Consumer Affairs in the Department of Law and Public Safety.

In addition, it also imposes the same heightened penalties for home improvement and home elevation contractors, who are regulated separately.