Legislation sponsored by Senator Steve Oroho and advanced today by the Senate Commerce Committee seeks to end the practice of professional and occupational license lending.

Sen. Steve Oroho’s legislation that seeks to end the practice of professional and occupational license lending passed the Senate Commerce Committee. (SenateNJ.com)

The bill, S-4119, would significantly increase the penalties for the transfer or lending of licenses issued by authorized boards in the state.

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

The legislation was introduced after Oroho worked 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 tradesmen. This bill will help close the loophole and eliminate the temptation with more strident punishment.”

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

Oroho’s bill 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.