N.J. Admin. Code § 17:20-12.9

Current through Register Vol. 56, No. 23, December 2, 2024

Section 17:20-12.9 - Courier service changes to ownership and other application information

(a) The following shall apply in the case of changes to courier service ownership for courier services that are non-publicly traded companies:

1. A courier service registration issued pursuant to this subchapter is issued only to the person or business entity that applied for the registration. To the extent that any complete change is made in the composition of the person or business entity, the registration is no longer valid, and the Director may take retroactive action pursuant to N.J.A.C. 17:20-5 and 9 against the prior courier service; and

2. To the extent that a partial change in the composition of the person or business entity is made, the registration may be revoked by the Director.

(b) The Director shall be notified, in writing, prior to any proposed change in ownership.

1. If a courier service anticipates any change in ownership or configuration of the person or business entity, and wants to maintain its courier service registration after the change, it must notify the Director:

i. At least 30 days prior to any change in an ownership interest, in a sole proprietorship, corporate stock transfer of five percent or more, or change in the ownership interest of a limited liability company or partnership of five percent or more;

ii. At least 10 days prior to any corporate stock transfer of less than five percent or change in ownership interest of a limited liability company of less than five percent; and

iii. A courier service that is a publicly traded company shall report to the Director, within 10 days of occurrence, any changes in ownership of record of its equity securities that indicate that any person has become the owner of record of more than 10 percent of its outstanding equity securities.

2. Upon timely notification to the Director, a new application may be submitted on behalf of the intended new person or business entity. The new application shall be accompanied by a letter detailing all of the changes from the prior application and the proposed closing date on which the current courier service shall cease to operate and the applicant shall exercise the rights and incur the obligations under the Courier Service Act, the State Lottery Law, and this chapter.

3. The Director shall review the new application pursuant to this subchapter. In the event that the Director approves the new application, with or without conditions, the Director shall set the closing date. Such date may be the closing date submitted to the Division by the current courier service and the applicant, or a date that the Director deems appropriate under the circumstances. The Director may also establish other procedures to facilitate such events.

(c) The following shall apply in the case of a change to critical application information other than ownership:

1. A courier service shall notify the Director in writing of any change in ownership control, address, business purpose, or other data relevant to registration 10 days prior to the change. All such changes in status will be subject to the review and approval of the Director, consistent with the standards used in the initial registration approval;

2. A courier service shall notify the Director in writing at least 10 days prior to when the courier service's affiliate agent lists, advertises, or offers for sale the primary business. This notification shall be in addition to any required notifications that the affiliated agent may be responsible to make under this chapter;

3. A courier service shall notify the Director in writing of any change of ownership of an affiliate agent(s) pursuant to N.J.A.C. 17:20-4.11at least 10 days prior to any change that would impact the courier service. This notification shall be in addition to any required notifications that the affiliated agent may be responsible to make under this chapter.

(d) Failure to comply with the requirements of this subsection may be cause for discipline under N.J.A.C. 17:20-5, including immediate suspension or revocation of the courier service registration and civil penalties under N.J.A.C. 17:20-9.

N.J. Admin. Code § 17:20-12.9

Adopted by 50 N.J.R. 1826(b), effective 8/6/2018