Legislation sponsored by Senator Steve Oroho cracking down on the practice of professional and occupational license lending is now law.

Legislation sponsored by Sen. Steve Oroho cracking down on the practice of professional and occupational license lending is now law. (SenateNJ.com)

Oroho’s legislation, A-6150/S-4119, signed Tuesday by the Governor, significantly increases 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 unethical practice is an all-too-common occurrence that can result in unnecessary health and safety risks. The penalties have not been sufficient to discourage the violators and this new law will turn up the heat.”

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 are companies that want to ignore the rules at the expense of money and jobs for authorized in-state trades workers,” Oroho noted. “This new law will help close the loophole and eliminate the temptation with more strident punishment.”

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

It will 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.