Revises licensure process for out-of-State institutions of higher education.

A4800

ASSEMBLY, No. 4800

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 23, 2026

Sponsored by:

Assemblywoman� CARMEN THERESA MORALES

District 34 (Essex)

SYNOPSIS

���� Revises licensure process for out-of-State
institutions of higher education.

CURRENT VERSION OF TEXT

���� As introduced.

��

An Act
concerning out-of-State institutions of higher
education 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.� As used in this act:

���� �Out-of-State institution�
means
a postsecondary educational
institution that provides instruction beyond the 12th grade level in programs
that satisfy the requirements for a degree at the associate, baccalaureate, or
graduate level, and which, with the exception of institutions that have a
specialty mission, offers a range of degree programs and that is located within
the United States or its possessions and is not incorporated in the State of
New Jersey and whose accreditation status in New Jersey is based upon a
location outside the State, as well as an institution located outside of the United
States or its possessions that is recognized by the appropriate body in the
particular country if the institution's requirements for awarding degrees are
generally equivalent to those accepted in the United States by an accrediting
body recognized by the United States Secretary of Education.

���� �Secretary� means the
Secretary of Higher Education.�

���� 2.� a. An out-of-State
institution seeking to offer a college credit-bearing course, academic degree
completion program, or complete academic degree program with a physical
presence in the State shall petition the Secretary of Higher Education for
licensure.�

���� b.� An institution shall
provide in its petition:

���� (1)� evidence that the
institution is licensed in the state in which the institution is incorporated,
and in the case of a petition to offer an academic degree completion program,
evidence that the institution is authorized to offer the full degree program in
the state in which the institution is incorporated;

���� (2)� the accreditation status
of the out-of-State institution;

���� (3)� the mission statement of
the institution that defines the scope, purpose, and basic tenets of the
institution;

���� (4)� information equivalent to
the annual summary sheet required by the regional or national institutional
accrediting association for the institution;

���� (5)� the institution�s
financial statements and management letters, if issued, for each of the
preceding three academic years;

���� (6)� evidence that the
institution has access to sufficient financial and operation resources to
sustain the proposed course or program;

���� (7)� information on the
qualifications of prospective faculty for the proposed course or program that
at a minimum meet the faculty qualifications of a comparable course or program
in the State;

���� (8)� a description of the
selection and review process for faculty teaching in the State;

���� (9)� a catalog and other data
that supports the petition;

���� (10)� an impact analysis on
existing in-State institutions of higher education, clinical sites and
placements, and field sites and placements, as appropriate;

���� (11)� a plan for the ongoing
assessment and development of the course or program;

���� (12)� documentation
demonstrating that any academic program intended to prepare students for
professional licensure or certification in the State is designed to meet the
educational requirements of the applicable State licensing or certification
authority; and

���� (13)� any other information
deemed necessary by the secretary.���

���� c.� The impact analysis
required in the petition pursuant to paragraph (10) of subsection b. of this
section shall include:

���� (1)� the identification and
mapping of comparable courses and programs of study in the State;

���� (2)� evidence of unmet need in
the State for the proposed course or program that may include evidence of
capacity constraints, waitlists, or geographic challenges relating to a
comparable in-State course or program;

���� (3)� evidence of unmet demand
in the State for the proposed course or program, which may include labor market
data, employer needs assessments, or State workforce reports;

���� (4)� for programs requiring
clinical placements, sites, and supervisors or field placements, sites, and
supervisors, evidence that the proposed program will not displace or reduce the
placements, sites, or supervisors available to students enrolled in existing
in-State programs; and

���� (5) if the proposed course or
program is duplicative of an in-State course or program, justification for the
petition.�

���� 3.� a.� The secretary shall
review all licensure petitions submitted pursuant to section 2 of this act.��

���� b.� Upon receipt of a
petition, the secretary shall distribute a brief summary of the petition�s
content, and information on how to access the petition on the website of the
Office of the Secretary of Higher Education, to all institutions of higher
education in the State.� The secretary shall provide an opportunity for public
comment on the petition in the 30 days following notification of the petition.�

���� c.� The secretary shall send
the petition and all comments received on the petition to the New Jersey Presidents�
Council for review and written recommendation to the secretary within 60 days
of receipt of the information.�

���� d.� The secretary shall, after
considering the recommendation of the New Jersey Presidents� Council, issue a
final determination on the petition.� The secretary shall license only those
institutions that meet all the petition requirements established pursuant to
this act and whose proposed offerings:

���� (1)� meet State standards of
quality and provide a plan for the ongoing monitoring of student outcomes;

���� (2)� are fiscally viable;

���� (3)� serve a demonstrable need
and demonstrate that the proposed course or program will not unduly impact
existing in-State programs; and

���� (4)� are in accordance with
the most recent comprehensive Statewide plan for higher education developed
pursuant to subsection a. of section 14 of P.L.1994, c.48 (C.18A:3B-14), as
applicable.�

���� e.� A license authorized by
the secretary pursuant to this section shall be valid for a period not
exceeding three years for an initial licensure period and may be subsequently
reauthorized for a period not exceeding five years upon demonstration of:

���� (1)� continued need;

���� (2)� compliance with State
reporting requirements;

���� (3)� positive program outcomes
aligned with State workforce and student needs; and

���� (4)� any other criteria to be
determined by the secretary.�

���� f.� Licensure by the secretary
of an out-of-State institution shall not preclude an in-State institution of
higher education from providing a course or program similar to that of the
out-of-State institution.�

���� 4.� a.� The secretary shall
prepare an annual report on the petitions submitted pursuant to this act.� The
report shall include:

���� (1)� the total number of
petitions submitted, disaggregated by degree level, program discipline, and
need for clinical or field placements;

���� (2)� the total number of
petitions approved, denied, withdrawn, or approved with conditions;

���� (3)� the basis for a petition
denial or conditional approval; and

���� (4)� a summary of the
recommendations provided by the New Jersey Presidents� Council pursuant to
section 3 of this act.�

���� b.� The report shall be made
available for public inspection on the website of the Office of the Secretary
of Higher Education and shall be submitted annually to the Governor, and to the
Legislature pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1).�

����

���� 5.� Each out-of-State
institution licensed to provide a course or program in the State shall provide
an annual report to the secretary that includes:

���� a.� the enrollment and
completion data for each course or program offered in the State by the
institution;

���� b.� any changes in the
curriculum, faculty, or institutional status that occurred since the date of
licensure by the State;

���� c.� appropriate measures of
student outcomes; and

���� d.� a summary of clinical and
field placements arranged by the institution, as applicable.�

���� 6.� The secretary shall ensure
that an out-of-State institution licensed to provide a course or program in the
State meets a minimum acceptable level of performance, as determined by the
secretary.� The secretary may suspend or revoke the institution's license if
the secretary determines the out-of-State institution:

���� a.� fails to meet the minimum
acceptable level of performance;

���� b.� misrepresents data
submitted to the secretary or fails to meet reporting standards; or

���� c.� adversely impacts the
access of students enrolled in an in-State institution of higher education to
clinical and field placements.

���� 7.��� The secretary shall
adopt, in accordance with the "Administrative Procedure Act,"
P.L.1968, c.410 (C.52:14B-1 et seq.), rules and regulations as may be necessary
to implement the provisions of this act.

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

STATEMENT

���� T
his bill requires an out-of-State institution seeking
to offer a college credit-bearing course, academic degree completion program,
or complete academic degree program with a physical presence in the State to
petition the Secretary of Higher Education (secretary) for licensure.�

����� The bill details the specific information that is
required to be included in the licensure petition.� The bill also requires that
an impact analysis of the proposed course or program be included in the
petition.� The analysis will consider issues such as the unmet demand in the
State for the course or program and its impact on clinical placements and
supervisor availability to students enrolled in existing in-State programs.� ����������� �

����� The bill directs the secretary to review all
licensure petitions and distribute a brief summary of the petition�s content,
and information on how to access the petition on the website of the Office of
the Secretary of Higher Education, to all institutions of higher education in
the State, and provide an opportunity for public comment.� The secretary would
then send the petition and all comments received on the petition to the New
Jersey Presidents� Council for review and recommendation to the secretary within
60 days of receipt of the information.� Finally, after considering the
recommendation of the New Jersey Presidents� Council, the secretary is required
to issue a final determination on the petition.� The secretary is directed to
license only those institutions that meet all the petition requirements and
whose proposed offerings:

�

meet State standards of quality and provide a plan for the
ongoing monitoring of student outcomes;

�

are fiscally viable;

�

serve a demonstrable need and demonstrate that the proposed
course or program will not unduly impact existing in-State programs; and

�

are in accordance with the comprehensive Statewide plan for
higher education required under current law, if applicable.�

����� The bill requires the secretary to prepare an annual
report on the petitions submitted pursuant to this bill, detailing the number
of petitions reviewed, their outcomes, and summarizing recommendations provided
by the New Jersey Presidents� Council.�

����� Under the bill, each out-of-State institution
licensed to provide a course or program in the State is required to provide an
annual report to the secretary.� The report would include certain information
on enrollment, program and faculty changes, student outcomes, and clinical and
field placements.�

����� The bill directs the secretary to ensure that an
out-of-State institution licensed to provide a course or program in the State
meets a minimum acceptable level of performance, as determined by the
secretary.� The secretary may suspend or revoke the institution's license if
the secretary determines the out-of-State institution:

�

fails to meet the minimum acceptable level of performance;

�

misrepresents data submitted to the secretary or fails to meet
reporting standards; or

�

adversely impacts the access of students enrolled in an in-State
institution of higher education to clinical and field placements.

����� Current regulations promulgated by the Office of the
Secretary of Higher Education have established a process for the approval of
courses and programs offered in New Jersey by out-of-State institutions.� This
bill revises that process.