LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3940

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: OCTOBER 15, 2024

 

 

SUMMARY

 

Synopsis:

Modifies regulation of mortuary science and establishes oversight of mortuary and embalming science.

Type of Impact:

Annual State revenue and expenditure increases.

Agencies Affected:

Department of Law and Public Safety.

 

 

Office of Legislative Services Estimate

Fiscal Impact

 

 

Annual State Expenditure Increase

Indeterminate

 

Annual State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) estimates the establishment of a bifurcated licensure for 1) mortuary and embalming science and 2) for mortuary science, both overseen by the Board of Mortuary Science in the Division of Consumer Affairs, will increase annual State expenditures and revenues by indeterminate amounts.  

·         The OLS notes that the bill will potentially increase the number of licenses regulated by the Board of Mortuary Science, thereby increasing annual State expenditures and revenue collections from the administration and collection of application fees and licensure fees.  Further, the OLS anticipates expenditures and revenues related to enforcement of the new mortuary science license. 

 

BILL DESCRIPTION

 

      This bill amends current law to create a licensure for mortuary and embalming science and a separate licensure for mortuary science.  Both types of licenses would be overseen by the State Board of Mortuary Science of New Jersey.

      Under the bill, a practitioner of mortuary and embalming science would provide services under what is currently recognized as mortuary science.  The bill provides that a practitioner of mortuary science would solely provide funeral directing services.  The education, including continuing education, and examination requirements, as well as other provisions of the law, are modified to incorporate this update to the mortuary science licensure to be regulated by the board.  This also includes updates to qualifications for licensure, including no longer requiring a person to be a resident of New Jersey and lowering the age to eighteen to qualify.  However, for a person to be licensed as what is now known as a practitioner of mortuary and embalming science, the requirement remains that this class of licensure still be proficient in both funeral directing and embalming. 

      The funeral directing industry is regulated, in large part, by the Mortuary Science Act.  Prior to the enactment of that law, the licensing board was directed to issue three separate licenses: one for embalming, one for funeral directing, and a third for both embalming and funeral directing. However, the Mortuary Science Act consolidated the three licenses into one, issuing thereafter a license for a practitioner of mortuary science, who were to be proficient in both embalming and funeral directing. This bill expands the one license into two pathways.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates the establishment of a bifurcated licensure for 1) mortuary and embalming science and 2) for mortuary science overseen by the Board of Mortuary Science in the Division of Consumer Affairs will increase annual State expenditures and revenues by indeterminate amounts.   The OLS notes that the bill will potentially increase the number of licenses regulated by the Board of Mortuary Science thereby increasing annual State expenditures and revenue collections from the administration and collection of application fees and licensure fees.  Removal of the specific dollar amounts for the cost of sitting for an initial examination and any re-examination may also increase annual State revenue collections as it allows the board to establish through rules and regulations the costs of the examinations and re-examinations, which may result in an increase in the fee and associated State revenues. 

      According to testimony provided during the May 13, 2024, New Jersey Assembly Regulatory Professions committee, the bill maintains the current licensure of mortuary and embalming science and adds a separate licensure pathway for mortuary science, eliminating the embalming requirements.  It was indicated during the hearing that this bifurcation of the licenses may increase the number of individuals who seek licensure who are currently not interested, for personal or religious reasons, in the embalming processes of funeral directing.

      State Expenditure Impacts:  The OLS expects the establishment of the licensure pathway for mortuary science to result in additional license applications and renewals, thereby increasing administrative and enforcement expenditures to the Division of Consumer Affairs.  The OLS, however, has no information on the number of individuals that will apply for the new practitioner of mortuary science license or the marginal regulatory cost per applicant, given that the cost will depend on operating decisions by the board. 

      State Revenue Impacts:  The new practitioner of mortuary science license and potential increases in the costs of initial examinations and any re-examinations are anticipated to generate additional revenue from the licenses and renewals.  The number of individuals who would apply for the new license is unknown.  Currently, the board has discretion in the setting of license fees, fines, and penalties.  In the absence of information on these amounts, the OLS cannot project the magnitude of the associated annual State revenue gain.

 

      Mortuary Science Background:  According to the FY 2025 Governor’s Budget, in FY 2023 there were 2,335 mortuary science licenses in force in New Jersey and 2,396 mortuary science licenses in force in FY 2022.  The current practitioner application fee is $50 and the initial license and biennial renewal are $350.

      The bill indicates that for religious, cultural, environmental, and philosophical reasons, an increasing number of funerals center around disposition without embalming.  This bill, by allowing funeral services not involving embalming to be provided by persons licensed by the board who are not embalmers, would facilitate the response by the funeral service industry to New Jersey’s diverse population and to societal changes.

 

Section:

Law and Public Safety

Analyst:

Kristin Brunner Santos

Lead Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).