Original WP 5.1
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This case can also be found at 356 N.J. Super. 42, 811 A.2d 484.
NOT FOR PUBLICATION WITHOUT THE
APPROVAL OF THE APPELLATE DIVISION
SUPERIOR COURT OF NEW JERSEY
APPELLATE DIVISION
DOCKET NO. A-0036-01T1
IN THE MATTER OF THE FINAL
AGENCY DECISION OF THE BOARD
OF EXAMINERS OF ELECTRICAL
CONTRACTORS AS TO CONDUIT
INSTALLATION BY J. FLETCHER
CREAMER & SON, INCORPORATED.
Argued telephonically October 17, 2002 -
Decided December 17, 2002
Before Judges Havey, A. A. Rogríguez and
Wells.
On appeal from a final action of the Board of
Examiners of Electrical Contractors.
Maeve E. Cannon argued the cause for appellant
International Brotherhood of Electrical
Workers, Local 269 (Hill Wallack, attorneys;
Patrick D. Kennedy, of counsel; Anthony L.
Velasquez and Len F. Collett, on the brief).
Richard D. McLaughlin argued the cause for
respondent J. Fletcher Creamer & Son, Inc.
Susan Carboni, Deputy Attorney General, argued
the cause for respondent Board of Examiners of
Electrical Contractors (David Samson, Attorney
General, attorney; Andrea M. Silkowitz,
Assistant Attorney General, of counsel; Ms.
Carboni, on the brief).
The opinion of the court was delivered by
WELLS, J.A.D.
The International Brotherhood of Electrical Workers, Local
269, (IBEW) appeals from a final decision of the Board of Examiners
of Electrical Contractors (Board) within the Division of Consumer
Affairs, Department of Law and Public Safety. That decision held
that certain work performed by a contractor, J. Fletcher Creamer,
(Creamer) on a New Jersey Turnpike project was not electrical work
and therefore, required no permit from the Board and need not have
been supervised by a Board licensed electrical contractor.
The facts, upon which the record reveals no material dispute,
are simply stated. The IBEW filed a complaint with the Board when
it discovered that general laborers, employees of Creamer rather
than electrical workers, had installed indoor rigid metal cable-
carrying conduit at a project at Exit 7 of the New Jersey Turnpike.
The purpose of the project was to convert one or more toll booths
for Easy-Pass use by Turnpike motorists.
The complaint charged that the conduit had not been properly
grounded or bonded. It claimed the conduit was capable of carrying
electrical wire and as such, required that the work be performed by
electrical workers and supervised by a Board licensed electrical
contractor.
Upon receipt of the complaint, the Board investigated. It
discovered that the conduit in question was installed to contain
fiber-optic cable to implement the high speed data transmission
needs of the largely computerized project. It is undisputed that
fiber-optic cable does not transmit electrical current of any
voltage, but rather, transmits light pulses.
In a letter response to the complaint dated February 16, 2001,
the Board, after reviewing all the documentation sent to it by the
IBEW and Creamer, ruled that "there [was] insufficient cause for
any action to be taken" against Creamer. The IBEW, in a letter
dated March 5, 2001, asked the Board to withdraw its decision for
failure to give the IBEW an opportunity to respond to Creamer's
submissions and for failure to advise whether the Board had issued
Creamer a license or permit for the work in question.
The Board responded on April 18, 2001. It stated:
Please be advised that based on the review of
the documentation received, the Board, in its
investigation, determined that the work
performed did not require a license and
business permit as it did not involve a
potential of more than ten volts.
The letter further indicated the Board had made its decision "as a
matter of law" and that it considered the case closed.
On June 11, 2001, the IBEW wrote once again. It asserted that
the work at issue "involved much more than 10 volts, and
constitutes work that undeniably requires a license and business
permit." Citing provisions of the Uniform Construction Code and
the National Electrical Code of 1999 (NEC), which refer to conduit
as "raceways," the IBEW repeated its assertions that the work was
electrical in nature, especially where the conduit could accept
both fiber-optic cable and electrical wire in the same raceway.
The letter then went to state:
In the present instance, our investigators
have found that the metal conduit connects
directly to the end terminals, creating a
continuous electrical conductor. The conduit
is grounded in multiple location for
electrical purposes, and is fully and
completely bonded to the panels. (See
Certification of Wayne DeAngelo, enclosed
herewith.) As such, we request that the Board
reconsider its prior decision based upon this
evidence. Attached to the DeAngelo Certif-
ication, please find true copies of
photographs taken by Mr. DeAngelo at the Exit
7 project, which indicate that the metal
conduit is fully bonded directly with the
panels, and is grounded. Fletcher Creamer
did, in fact, engage in work necessitating a
license and business permit in violation of
law as set forth at length in our prior
letters of complaint.
In an opinion filed on September 7, 2001, and entitled
"Amplification of Final Agency Decision Nunc Pro Tunc Pursuant to
R.2:5-1(b)," the Board handed down its final determination on the
subject. The Board first reviewed the above history of the
controversy. Relying in part on our 1993 unpublished decision, In
re Nat'l Elec. Contractors Ass'n, Northern N.J. Chapter, Inc., and
New Jersey State Elec. Workers Ass'n, I.B.E.W., AFL-CIO, A-3802-
90T2, A-3803-90T2, (App. Div. 1993), it concluded:
The Board now amplifies as follows its
original explanation of its decision in this
matter:
The conduit at issue here is intended -- as
IBEW tacitly acknowledges -- to contain fiber-
optic cable. This is non-conductive cable,
which transmits light impulses rather than
electric current, and thus has no voltage
potential. For this reason, the installation
of the conduit in this instance is exempt work
pursuant to N.J.S.A. 45:5A-18(j), which
exempts from business permit requirements
electrical work with a potential of less than
10 volts, and beyond the jurisdiction of the
Board.
. . .
The fact that the conduit is bonded and
grounded is also not determinative. The Board
differentiates between bonding and grounding
as an additional safety precaution, and
bonding and grounding of systems that are an
essential part of a building's electrical
system. An example would be the iron and
steel framework of a building, which is
required to be grounded to the electrical
system. However, this framework carries no
voltage, and it has never been maintained that
the framework has to be installed by a
licensed electrical contractor. Similarly,
air conditioning ducts are bonded for
additional safety, but an individual who
installs the ducts does not require licensure
as an electrical contractor.
The conduit in this instance, while it may be
connected to a terminal box, does not carry
voltage. Work with a voltage potential of no
more than 10 volts is exempt work.
We affirm.
Administrative agency decisions are subject to a uniform
standard of review and will be upheld, unless the decision is
"arbitrary, capricious or unreasonable or it is not supported by
substantial credible evidence in the record as a whole." Henry v.
Rahway State Prison,
81 N.J. 571, 579-80 (1980). The reviewing
court will only decide whether the agency's findings could
reasonably have been reached on "substantial" or "'sufficient
credible evidence present in the record' considering 'the proofs as
a whole.'" In re Taylor,
158 N.J. 644, 656 (1999) (quoting Close
v. Kordulak Bros.,
44 N.J. 589, 599 (1965)). The court gives "due
regard" to the factfinder's ability to judge credibility and to the
agency's expertise, where such expertise is a factor. State v.
Locurto,
157 N.J. 463, 471 (1999); In re Taylor, supra,
158 N.J. at
656; Close, supra, 44 N.J. at 599 (1965).
We note initially that the IBEW has no interest in whether or
not Creamer is or is not sanctioned by the Board. Additionally,
the project itself has been long completed and no work remains to
be done. For these reasons, we harbor grave reservations about
IBEW's standing to bring this appeal. SeeMarques v. New Jersey
Bd. of Med. Examiners,
264 N.J. Super. 416, 417-18 (App. Div.
1993). Nevertheless, we decide the appeal on its merits on the
ground that it affects the public interest in the safety of
electrical installations, and because while the IBEW has an obvious
private interest to assert, it is more akin to a public interest
group. See generallySMB Assoc. v. New Jersey DEP,
137 N.J. 58
(1994); In re Waterfront Development Permit No. WD88-0443-1,
Lincoln Harbor Final Development, Weehawkin, Hudson County,
244 N.J. 320 (1990), certif. denied,
126 N.J. 320 (1991).
We also reject IBEW's procedural arguments that (1) the
Board's decision constituted rulemaking in violation of the
Administrative Procedure Act and (2) that it was entitled to a
hearing as a contested case. First, it was the IBEW that asked the
Board for a specific determination in a particular case relating to
a single project. While the resolution of the request involved the
construction of provisions of a statute which underlies the Board's
powers, that is not unusual in administrative determinations and
does not invoke the rulemaking capacity of the Board. "An agency
has discretion to choose between rulemaking, adjudication, or an
informal disposition in discharging its statutory duty. . . ."
Northwest Covenant Med. Ctr. v. Fishman,
167 N.J. 123, 137 (2001).
Adjudication or an informal agency action is defined as "any
determination that is taken without a trial-type hearing, including
investigating, publicizing, negotiating, settling, advising,
planning and supervising a regulated industry." Id. at 136-37.
Here, the Board engaged in an informal agency decision rather
than rulemaking. The Board's decision can be classified as an
informal agency decision because the Board made its determination
without a trial-type hearing after investigating a regulated
industry, electrical contracting. SeeNorthwest Covenant Med.
Ctr., supra, 167 N.J. at 136-37. Additionally, the Board did not
engage in rulemaking because it did not make a statement
implementing or interpreting law or policy. Rather, the Board
investigated and analyzed the issues raised in IBEW's complaint and
reached a determination based on the facts of a particular case.
Second, there was no requirement for a trial-type contested
hearing in this instance because there was no material fact in
dispute about the work that was done; the kind of cable installed
within the conduit; or the nature, purpose or functioning of fiber-
optic cable.
An evidentiary hearing is mandated only when the proposed
administrative action is based on disputed adjudicative facts. See
ibid. In other words, "'[t]he right to a full trial-type hearing
in administrative proceedings is generally limited to the situation
where adjudicatory facts -- that is, facts pertaining to a
particular party -- are in issue.'" High Horizons Dev. Co. v. New
Jersey Dept. of Transp.,
120 N.J. 40, 49 (1990) (quoting Friedman,
Judicial Review Under the Superfund Amendments, 14 Colum. J. Envtl.
L. 187, 201 (1989)). Adjudicative facts "answer the questions of
who did what, where, when, how, why, [and] with what motive or
intent." Ibid. They are the type of facts that go to a jury in a
case tried before a jury. Id. at 49-50.
"If a matter before an agency does not present contested
material issues of fact that can be decided only 'after [an]
opportunity for an agency hearing,' it is not a contested case
subject to transfer to the OAL." Sloan ex rel. Sloan v. Klagholtz,
342 N.J. Super. 385, 392 (App. Div. 2001) (quoting N.J.S.A. 52:14B-
2(b)). Even if an administrative matter classifies as a "contested
case,'" the head of the agency may elect to conduct the hearing
himself. Ibid. The agency has the exclusive authority to
determine whether an administrative matter constitutes a contested
case under N.J.S.A. 52:14B-2(b).
As to the merits, we begin with the statutory framework
underlying the Board's decision. N.J.S.A. 45:5A-9(a), the statute
at issue in this case, provides:
[N]o person shall . . . enter into, engage in
or work in business as an electrical
contractor, unless such person has secured a
business permit and such person or an officer,
partner or employee who is or will be actively
engaged in the business for which a business
permit is sought has obtained a license from
the [B]oard [of Examiners of Electrical
Contractors] in accordance with the provisions
of this act, and such licensee shall resume
full responsibility for inspection and
supervision of all electrical work to be
performed by the permittee in compliance with
recognized safety standards. A licensee shall
not be entitled to qualify more than one
person for a business permit.
[N.J.S.A. 45:5A-9(a).]
An electrical contractor is defined as "a person who engages in the
business of contracting to install, erect, repair or alter
electrical equipment for the generation, transmission or
utilization of electrical energy." N.J.S.A. 45:5A-2(d). N.J.S.A. 45:5A-18 sets forth the type of work that is exempt
from the requirements of N.J.S.A. 45:5A-9(a). N.J.S.A. 45:5A-18(j)
provides:
Electrical work or construction which is
performed on the following facilities or which
is by or for the following agencies shall not
be included within the business of electrical
contracting so as to require the securing of a
business permit under this act:
. . .
(j) Any work with a potential of less than 10
volts.
In this case, laborers employed by Creamer installed conduit
for fiber optic cable. Fiber optic cables "transmit light for
control, signaling, and communications through an optical fiber."
N.E.C. §770-4. There are three types of fiber optic cable which
are: nonconductive, conductive, and composite. N.E.C. §770-5(a)-
(c) . Nonconductive cable "contain[s] no metallic members and no
other electrically conductive materials." N.E.C. § 770-5(a).
Conversely, conductive cables "contain noncurrent-carrying
conductive members" and composite cables "contain optical fibers
and current-carrying electrical conductors." N.E.C. 770-5(a) and
(b).
Moreover, the raceway for fiber optic cable "shall be of a
type permitted in Chapter 3 and installed in accordance with
Chapter 3." N.E.C. § 770-6. N.E.C. § 300-10 states:
Metal raceways, cable armor, and other metal
enclosures for conductors shall be
metallically joined together into a continuous
electric conductor and shall be connected to
all boxes, fittings, and cabinets so as to
provide effective electrical continuity.
Unless specifically permitted elsewhere in
this [Code], raceways and cable assemblies
shall be mechanically secured to boxes,
fittings, cabinets, and other enclosures.
[N.E.C. § 300-10.]
The Board's determination that Creamer was exempt from
obtaining a license as the work involved a potential of less than
ten volts was reasonable and supported by the record. The record
contained documentation presented to the Board by Creamer, which
stated that the fiber optic cable in this case transmitted light
impulses rather than electricity. Based on the information
presented to it by Creamer, coupled with its expertise, the Board
reasonably determined that the fiber optic cable in this case was
nonconductive cable, which transmitted light rather than electric
current and thus, had no voltage potential.
The Board was also reasonable in its interpretation of the
word "potential" as contained in N.J.S.A. 45:5A-18(j), which
exempts "any work with a potential of less than 10 volts" from the
license and permit requirement of N.J.S.A. 45:5A-9. The Board
viewed the word "potential" as meaning what the conduit actually
contained, and quoted a definition of "potential" which stated,
"'[t]he potential energy of a unit charge at any point in an
electric circuit measured with respect to a given reference point
in the circuit or to the ground.'" (quoting Webster's II New College
Dictionary 864 (1995)). Conversely, the IBEW construed "potential"
in its almost infinite sense: what the conduit was capable of
containing, or might in the future contain.
IBEW's argument that the conduit must be installed by a
licensed electrical contractor because it has the potential of
carrying electric wire in the future is flawed. Whether the
conduit has the capacity to hold electrical wire has no bearing on
the issue in this case because the conduit was neither designed to
nor does it actually carry electrical wire. Rather, it carries
fiber optic cable, which possesses no electrical properties.
IBEW also argued that because the conduit was bonded and
grounded, apparently in conformity with the N.E.C. § 300-10, infra
p.9,See footnote 11 a license was required to perform the conduit installation
under N.J.S.A. 45:5A-9. In the first place, the N.E.C. is an
industry wide standard-setting technical code. It does not purport
to, nor can it, usurp the right of the states to determine what
licenses or permits authorize particular kinds of work.
The argument is also unavailing because the fact that
grounding to an electrical system is involved does not mean that
the work must be performed by a licensed electrical contractor. As
the Board demonstrated in its amplified decision by way of example,
the iron and steel framework of a building are required to be
grounded to the electrical system; however, the framework carries
no voltage and thus, it has never been required that a licensed
electrical contractor install the framework. Similarly, the Board
noted that air conditioning ducts are bonded; however an individual
installing the ducts is not required to obtain licensure as an
electrical contractor.
Finally, while we believe that the above considerations fully
support our determination to affirm the Board, because we have been
unable to locate any published decisions on the issue decided in or
out of New Jersey, and because the parties were aware of, and to
some extent relied upon our unpublished decisions, we also describe
those decisions.
In Palmer v. National Electrical Contractors Ass'n, A-836-65,
slip op. at 2 (App. Div. 1967), we considered "whether or not the
'laying of pipes under highways to accommodate electrical wiring,
and through which electrical wiring is generally run at some time
after,' constitutes electrical contracting work" within the meaning
of N.J.S.A. 45:5A-2(d). The Board determined that this was
electrical work. Slip op. at 4. However, we, concluded that the
described work was not electrical contracting work as defined in
the Act. Slip op. at 9. We noted that the evidence before the
Board demonstrated that "no great skill or technical knowledge is
required to install this pipe." Slip op. at 8. We further
recognized that it did not appear that the laborers or supervisors
needed special training and experience in electrical work to
perform this installation. Slip op. at 8. We also noted that it
did not appear from the evidence before the Board that the
installation of pipe by general contractors in the past resulted in
hazards or danger to human safety. Slip op. at 8.
Similarly, in In re Nat'l Elec. Contractors Ass'n, Northern
N.J. Chapter, Inc., supra, slip op. at 2, we considered whether
"'on-site' installation of electrical conduit, [that is, on public
and private property], constituted 'electrical contracting' within
the meaning of the Electrical Contractor's Licensing Act (Act),
N.J.S.A. 45:5A-1 to -22." In the underlying complaint, an IBEW
representative complained to the Board that unlicensed contractors
were installing electrical conduit. Slip op at 3. The laborers
argued that the conduit work was not electrical contracting, and
thus, they were not subject to the Board's licensing powers. Slip
op. at 3. The Board established a committee, which found that the
installation of conduit was to be performed by electrical
contractors. Slip op. at 3-4. A Deputy Attorney General then
advised the board in a letter opinion that "conduit work 'is not
statutorily reserved to licensed electrical contractors and,
therefore, may be performed by general or utility contractors
employing general laborers.'" Slip op. at 5.
On appeal, we agreed with the Deputy Attorney General that the
installation of empty conduit does not require a license under the
Act. Slip op. at 12. In reaching our decision, we stated that
"conduit installation essentially involves the digging of a ditch
at a designated place . . ., installation of empty piping and
refilling of the ditch." Slip op. at 13. We noted that this work
had been historically performed by unlicensed laborers, both before
and after the Palmer decision. Slip op. at 13. In addition, we
recognized that the parties conceded that when conduit is
installed, it does not contain any current carrying or non-
energized wires, and the nonlicensed installers do not touch
electrical wires at any time. Slip op. at 13. We are cognizant that these decisions are factually dis-
tinguishable despite the Board's reliance on In re Nat'l Elec.
Contractors Ass'n, Northern N.J. Chapter, Inc., supra, in making
it's determination. The work here was indoor work and thus,
admittedly more critical from a safety perspective. Moreover, the
Easy Pass installation was on a public rather than a private
project, and thus, requires heightened sensitivity to jurisdiction-
al disputes between labor unions. Nevertheless, work relating to
the installation of conduit or pipe to carry wire, even that
designed to carry electrical wire, is analyzed in these decisions
as work of a nature that in itself does not require the skills of
workers or supervisors with experience or training in the handling
of electrical power, electrical wire, its grounding or its
connections. For these reasons, we find them persuasive.
Affirmed.
Footnote: 1 1 We note that while the IBEW's original complaint charged
that the conduit had not been bonded or grounded, its later
position was that it had been bonded and grounded.