Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

A2133

ASSEMBLY, No. 2133

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman LINDA S. CARTER

District 22 (Somerset and Union)

Assemblywoman VERLINA REYNOLDS-JACKSON

District 15 (Hunterdon and Mercer)

Assemblyman CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Co-Sponsored by:

Assemblyman Calabrese

SYNOPSIS

���� Establishes process for merger or consolidation of
public institution of higher education with other institutions of higher
education or certain proprietary institutions; requires executive and
legislative approval of merger or consolidation.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning mergers of institutions of higher education
and certain proprietary institutions and supplementing Title 18A of the New
Jersey Statutes.�

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.� a. As used in this
section, �participating institution� means an institution of higher education
or degree-granting proprietary institution that is party to a merger or
consolidation.

���� b.� Notwithstanding any other
provision of law to the contrary, and subject to the approval process
established pursuant to subsections c. and d. of this section, the governing
board of a public institution of higher education shall have the power to merge
or consolidate with one or more� institutions of higher education or
degree-granting proprietary institutions and shall assume any vested rights,
grants, charter rights, other than those retained pursuant to N.J.S.18A:68-6,
privileges, exemptions, immunities, powers, prerogatives, franchises or
advantages, debts, or liabilities of the� institutions with which it merges or
consolidates.

���� c.� � Prior to commencing the
institutional merger or consolidation:

���� (1) the governing board of
each participating institution shall adopt a resolution to enter into the
institutional merger or consolidation; and

���� (2) within 30 days of the
adoption of the last resolution pursuant to paragraph (1) of this subsection,
the participating institutions shall submit a joint application to the
Secretary of Higher Education for preliminary approval.

���� The secretary shall notify
each participating institution of the preliminary approval or disapproval
within 30 days of receipt of the application.���

���� d.� Upon receipt of the
secretary�s preliminary approval to participate in the institutional merger or
consolidation, the governing boards of the participating institutions shall
jointly develop and submit a comprehensive plan for the institutional merger or
consolidation to the secretary for final review and approval.� The plan shall
be developed and reviewed according to standards set forth by the secretary.

���� e. Prior to determining a
final executive approval or disapproval of the proposed merger or
consolidation, the secretary shall review the comprehensive plan and assess:

���� (1) the need for the
institutional merger or consolidation;

���� (2) whether the institutional
merger� or consolidation is in the best interest of the State and the affected
parties, including prospective and current students, institutional faculty and
staff, and the institutions� host communities; and

���� (3) any other relevant factors
and criteria determined by the secretary.

���� f. The secretary may utilize
the assistance of an external consultant team, solicit comments from interested
parties, hold public hearings at the campuses of the participating
institutions, and consult with the Higher Education Student Assistance Authority
and the New Jersey Presidents� Council, as appropriate, in reviewing the
comprehensive plan.� Costs incurred by the secretary in reviewing the
comprehensive plan shall be borne by the participating institutions.�

���� g.� The secretary shall issue
a final approval or disapproval of the merger or consolidation and issue a
written certification to the governing boards of all participating
institutions.�

���� 2. The Secretary of Higher
Education shall submit to the Legislature a copy of the written certification
of the approval of a merger or consolidation issued pursuant to section 1 of
this act.� If the Legislature does not disapprove the merger or consolidation
by the adoption of a concurrent resolution within 90 days, the merger or
consolidation shall be deemed to be authorized. The secretary and the
participating institutions shall provide to the Legislature such information
concerning the merger or consolidation as the Legislature may require for its
consideration.

���� 3. a. Upon completion of an
institutional merger or consolidation, the secretary shall determine whether
the institutional merger or consolidation has been successfully executed and,
upon finding that the institutional merger or consolidation has been successfully
executed, the secretary shall authorize, as needed, any necessary changes to
the licensure of the single remaining public institution.

���� b.� Upon completion of an
institutional merger or consolidation, and in accordance with the powers and
duties of its governing board, the single remaining public institution of
higher education shall, except as otherwise provided by law, be considered a single
entity for purposes of State appropriations, grants, capital and construction
funding, and other funding.

���� 4.��� The provisions of this
act shall not apply to Rutgers, the State University; however, any other
institution that seeks to participate in a merger or consolidation with
Rutgers, the State University shall be subject to the provisions of this act.�

���� 5.� The provisions of this act
shall not apply to any merger or consolidation of participating institutions
for which a letter of intent, or similar agreement indicating a commitment to a
merger or consolidation, has been executed prior to the effective date of this
act.�

���� 6.� Notwithstanding any
provision of the "Administrative Procedure Act," P.L.1968, c.410
(C.52:14B-1 et seq.), to the contrary, the Secretary of Higher Education is
authorized to adopt immediately upon filing with the Office of Administrative
Law rules and regulations necessary to implement this act. The rules and
regulations shall include, but not be limited to, standards for the development
of a merger or consolidation plan for participating institutions and for the
review and approval of the plan by the secretary.� The rules and regulations
adopted pursuant to this section shall be effective for a period not to exceed
180 days following the date of filing and shall thereafter be amended, adopted,
or readopted by the secretary in accordance with the requirements of P.L.1968,
c.410 (C.52:14B-1 et seq.).

���� 7. �This act shall take effect
immediately.�

STATEMENT

���� This bill establishes a
process for the merger or consolidation of a public institution of higher
education with other institutions of higher education or certain proprietary
institutions and requires executive and legislative approval of the merger or consolidation.�

���� The bill provides that,
subject to an approval process established within the bill�s provisions, the
governing board of a public institution of higher education has the power to
merge or consolidate with one or more institutions of higher education or degree-granting
proprietary institutions.� Under such a merger or consolidation, the public
institution of higher education is to assume any vested rights, grants, certain
charter rights, privileges, exemptions, immunities, powers, prerogatives,
franchises or advantages, debts, or liabilities of the institutions with which
it merges or consolidates.

���� The bill requires that, prior
to commencing the institutional merger or consolidation:

���� (1) the governing board of
each participating institution is to adopt a resolution to enter into the
proposed institutional merger or consolidation; and

���� (2) the participating
institutions are to submit a joint application to the Secretary of Higher
Education to commence the proposed institutional merger or consolidation.

���� The bill directs the secretary
to notify each participating institution of the preliminary approval or
disapproval within 30 days of receipt of the application.���

���� The bill further requires
that, upon receipt of the secretary�s preliminary approval to participate in
the institutional merger or consolidation, the governing boards of the
participating institutions are to jointly develop and submit a comprehensive
plan for the institutional merger or consolidation to the secretary for final
review and approval.� The plan is to be developed and reviewed according to
standards set forth by the secretary in regulation.� The secretary may utilize
the assistance of an external consultant team, solicit comments from interested
parties, hold public hearings at the campuses of the institutions, and consult
with the Higher Education Student Assistance Authority and the New Jersey
Presidents� Council, as appropriate, to review the comprehensive plan.� Costs
incurred by the secretary in reviewing the comprehensive plan for a proposed
merger or consolidation are to be borne by the participating institutions.�

���� Under the bill, the secretary
is to issue a final approval or disapproval of the merger or consolidation and
issue a written certification to the governing boards of all participating
institutions.�

���� The bill further directs the
secretary to submit to the Legislature a copy of the written certification of
the approval of a merger or consolidation.� If the Legislature does not
disapprove the merger or consolidation by the adoption of a concurrent resolution
within 90 days, the merger or consolidation is deemed to be authorized.

���� The bill directs the secretary
to authorize, as needed, any necessary changes to the licensure of the
remaining public institution.

���� The bill provides that the
single remaining public institution of higher education is to, except as
otherwise provided by law, be considered a single entity for purposes of State
appropriations, grants, capital and construction funding, and other funding

���� The provisions of the bill do
not apply to Rutgers, the State University; however, any other institution that
seeks to participate in a merger or consolidation with Rutgers, the State
University is subject to the bill�s provisions.�

���� The provisions of the bill do
not apply to any merger or consolidation of participating institutions for
which a letter of intent, or similar agreement indicating a commitment to a
merger or consolidation, has been executed prior to the bill�s effective date.�

���� Finally, the bill provides for
the authorization of emergency regulations, which are to be readopted with or
without amendment, pursuant to the requirements of the �Administrative
Procedure Act� within 180 days.�