N.J. Admin. Code § 7:26-16.11

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:26-16.11 - Severance of disqualifying individuals

(a) Notwithstanding the disqualification of any applicant, permittee or licensee pursuant to N.J.A.C. 7:26-16.8 or 16.9, the Department may issue or renew a license if the applicant, permittee or licensee severs the interest of or affiliation with the person who would otherwise cause that disqualification.

(b) Where the disqualifying individual is the owner of an equity interest or interest in the debt liability of the licensee, permittee or applicant, the individual must completely divest himself or herself of that interest. Where immediate sale of the interest would work an economic hardship on the individual, the licensee, permittee or applicant, the Department may, in its discretion, allow for divestiture over a period of time not to exceed one year.

(c) Arrangements such as blind trusts will be acceptable only as part of a divestiture arrangement under which the trustee is obliged to sell the disqualifying individual's interest within a period not to exceed two years.

(d) Before the Department will issue or renew a license to an applicant, permittee or licensee which has severed a disqualifying individual, the applicant, permittee or licensee must submit to the Department an affidavit, sworn to by the chief executive officer, attesting to the severance of the disqualifying individual and describing the terms, circumstances and conditions of that severance. Any instruments pertaining to that severance (such as a trust agreement) shall be submitted with the affidavit.

N.J. Admin. Code § 7:26-16.11

Amended by R.2002 d.181, effective 6/17/2002.
See: 33 N.J.R. 4218(a), 34 N.J.R. 2049(a).
Added references to permittee and neutralized gender references throughout.