LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

ASSEMBLY, No. 4331

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: FEBRUARY 19, 2025

 

 

SUMMARY

 

Synopsis:

Establishes licensure for cosmetic retail services.

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 that the bill’s creation of licensure for cosmetic retail services under the authority of the State Board of Cosmetology and Hairstyling in the Division of Consumer Affairs will have an indeterminate net effect on annual State revenue collections and expenditures.   

·         The OLS expects the newly established license to result in additional license applications and renewals, thereby increasing the division’s administrative and enforcement expenditures.

·         The OLS anticipates that the bill may increase annual State revenue collections from application fees, licensure fees, fines, and penalties related to the new license.

 

 

BILL DESCRIPTION

 

      This bill amends current law to establish licensure requirements for limited cosmetic retail service licenses to be issued to cosmetic retail service establishments.

      The license will apply to a retail premises of at least 750 square feet and allow a licensed skin care specialist to perform certain skin care services, defined in the bill as cosmetic retail services, at a qualifying establishment.  Specifically, a qualified retail establishment that obtains a license pursuant to the bill would be permitted to offer certain skin care services in exchange for compensation at the establishment.

      At present, a cosmetics retailer is prohibited from offering any paid services unless it separates from the floor space of a retail facility at least 350 square feet of space for two customer chairs and an additional 50 square feet of space for each additional chair.  These are the same requirements for full service salons.  Under the bill, a cosmetic retail service establishment will be allowed to consider the entire square footage of the store for the purpose of licensure and will be allowed one chair for every 750 square feet of retail space.  The issuance of a limited cosmetic retail service license to a cosmetic retail service establishment will not change the preexisting use and occupancy classification of the establishment under the New Jersey Uniform Construction Code.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the bill’s creation of licensure for cosmetic retail services under the authority of the State Board of Cosmetology and Hairstyling in the Department of Law and Public Safety’s Division of Consumer Affairs will have an indeterminate net effect on annual State revenue collections and expenditures. 

      State Expenditure Increase:  The OLS expects the newly established license for cosmetic retail services to result in additional license applications and renewals, thereby increasing the division’s administrative and enforcement expenditures.  The OLS, however, has no information on the number of entities that will apply for a cosmetic retail license or the marginal regulatory cost per applicant, given that the cost will depend on operating decisions made by the board. 

      State Revenue Increases:  The OLS anticipates that the bill may increase annual State revenue collections from application fees, licensure fees, fines, and penalties related to the new license.  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.

      State Board of Cosmetology and Hairstyling Licenses:  The FY 2025 Governors’ Budget indicated that in FY 2023 there were 88,851 licenses issued under State Board of Cosmetology and Hairstyling.  A 2023 division report noted that “[m]ore than 70,510 beauticians, barbers, cosmetologist, hairstylists, skin care specialists and manicurists are licensed by the Board.  More than 9,237 shops, 702 cosmetology-hairstyling teachers and 28 schools are also licensed by the Board.”

 

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.).