Bill > A5923

Introduced Session

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.

AI Summary

Committee Categories

Linda Carter (D)*,  Cody Miller (D)*,  Verlina Reynolds-Jackson (D)*,  Clinton Calabrese (D), 

Introduced, Referred to Assembly Higher Education Committee (on 07/24/2025)

Official Document