Bill
S 3882
Allows the Department of Banking and Insurance and Title 45 boards to retain license and renewal fees instead of remitting them to the State Treasury, funding operations and exams.
Purpose
S 3882 amends existing law (R.S.45:1-3) to allow the Department of Banking and Insurance (the “department”) and professional licensing boards under Title 45 to retain fees and other charges they collect, rather than remitting those moneys to the State Treasury. The change gives these entities direct custody of funds collected for licensure and renewal and permits boards to keep funds remaining in their treasuries as of June 30 of each year.
Key provisions
- Department of Banking and Insurance: Authorizes the department to retain any fees, assessments, or charges paid to the commissioner (removing a prior requirement to return those moneys to the Division of Budget and Accounting/State Treasury).
- Title 45 professional boards (R.S.45:1-3):
- Clarifies that boards “shall retain” — rather than remit — fees they collect (including fees for initial licensure and for annual, biennial, or other recurring renewals).
- Permits boards to use retained funds to defray normal operating expenses, including travel, compensation for officers/agents, costs of investigations/prosecutions of violations, and at least $100 set aside for exam preparation and administration.
- Requires boards to keep accurate accounts of receipts and expenditures; those accounts remain subject to audit by the State Comptroller.
- Effective date: The act takes effect immediately upon enactment.
Who is affected
- Department of Banking and Insurance — will retain fee revenue it collects.
- Professional licensing boards governed by Title 45 — will retain license and renewal fee revenues and may expend those funds per statutory allowances.
- Licensed professionals and applicants — the fee collection process is unchanged, but fees will remain with the collecting board/department rather than becoming part of the State general fund.
- State budget/treasury — potential reduction in funds otherwise previously transferred into the State Treasury.
Procedural / timeline notes
- Introduced in the Senate: November 18, 2024; referred to Senate Commerce Committee.
- Reported favorably with committee amendments: March 24, 2025 (Senate Commerce Committee).
- Print No. 3882A issued April 28, 2025; subsequently referred/assigned to Transportation committee actions on January 30 and April 28, 2025 (legislative record shows multiple committee referrals and prints).
- Sponsors listed in document materials include Senators Joseph P. Cryan and Robert W. Singer; external metadata lists Michelle Hinchey as primary sponsor and an Assembly companion (A 1615).
Potential impacts
- Grants greater financial autonomy to the department and Title 45 boards, enabling them to fund operations (investigations, exams, staffing) without relying on general fund appropriations.
- Reduces the amount of fee revenue flowing into the State Treasury, with an offsetting increase in dedicated funds held by boards/departments; the net fiscal impact depends on the total annual fee volume.
- Maintains oversight through required accounting and auditability by the State Comptroller.
Note on document inconsistencies
The document title provided at the top ("Relates to area speed limits") and multiple differing sponsor listings appear inconsistent with the bill text, which addresses retention of licensing and departmental fees. These inconsistencies are likely clerical or metadata errors; the statutory text and committee statement govern the bill’s substance.
Compiled from official sources — confirm details with the bill’s official record.
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