LEGISLATIVE FISCAL ESTIMATE

[Second Reprint]

ASSEMBLY, No. 4331

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 9, 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 provisions establishing a limited cosmetic retail services license 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 a limited cosmetic retail service license to be issued to cosmetic retail service establishments.

      The license will apply to any fixed retail establishment that sells certain skin care, hair care, makeup, and cosmetic products, and provides cosmetic retail services to consumers at a qualifying establishment. Specifically, a qualified retail establishment that obtains a license pursuant to the bill would be permitted to offer cosmetic retail services in exchange for compensation at the establishment.

      Currently, 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 licensed by the board is permitted to have up to four workstations with chairs, provided that all of the workstations are situated in proximity to each other.

      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.

      The bill makes it unlawful for a (1) licensee to provide services beyond those within the definitions of cosmetic retail services while on the premises of a cosmetic retail service establishment; and (2) cosmetic retail establishment licensed by the board to permit any licensee by the board to provide services beyond those within the definition of cosmetic retail establishment while on the premises of the cosmetic retail establishment.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that the bill’s provisions establishing a cosmetic retail services license 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 2026 Governor’s Budget indicated that in FY 2024 there were 95,674 licenses issued under the State Board of Cosmetology and Hairstyling. A 2023 division report noted that “[m]ore than 70,510 beauticians, barbers, cosmetologists, 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.).