A5849

An Act establishing the New Jersey Government Restructuring and Modernization Commission.

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

1. This act shall be known and may be cited as the “Government Restructuring and Modernization Commission Act.”

2. The Legislature finds and declares that:

a. The State of New Jersey faces a significant structural budget deficit that demands a more efficient and modern approach to governance.

b. The executive branch operates across numerous departments and agencies that often lack coordination and legislative oversight.

c. Redundant or outdated functions persist across departments, increasing inefficiencies and costs to taxpayers.

d. A collaborative effort involving the executive, legislative, and departmental leadership is necessary to streamline government operations while preserving the integrity of the State workforce.

e. Any modernization effort must prioritize the institutional knowledge of existing staff and avoid forced layoffs, utilizing attrition and retirements instead.

3. a. There is established the New Jersey Government Restructuring and Modernization Commission. The commission shall consist of 15 members as follows:

(1) the Lieutenant Governor, or a designee, who shall serve as chair of the commission;

(2) three members of the Senate, appointed by the Senate President, no more than two of whom shall be members of the same political party;

(3) three members of the General Assembly, appointed by the Speaker of the General Assembly, no more than two of whom shall be members of the same political party;

(4) three career public employees, with a minimum of 10 years of service, appointed jointly by the Governor, Senate President, and Speaker of the General Assembly; and

(5) five public members with expertise in public administration, finance, or government reform, including one appointed by the Governor, and one each appointed by the Governor upon the recommendation of the Senate President, the Senate Minority Leader, the Speaker of the General Assembly, and the Minority Leader of the General Assembly.

b. The commission shall hold its initial organizational meeting as soon as practicable, but no later than 30 days following the appointment of its members. Any vacancy in the membership of the commission shall be filled in the same manner as the original appointment. Legislators shall serve during the two-year legislative term in which the appointment is made and shall be eligible for reappointment to the commission. Each public member of the commission shall serve for a term of five years.

c. Members of the commission shall serve without compensation, but shall be reimbursed for all necessary expenses incurred in the performance of their duties, within the limits of funds appropriated or otherwise made available to the commission for its purposes.

d. The Department of State shall provide staff and related support services as may be needed by the commission to carry out its responsibilities. The commission shall also be entitled to call to its assistance and avail itself of the services of the employees of any other State department, office, division, or agency to accomplish its duties.

e. A majority of all the authorized members of the commission shall constitute a quorum. The commission shall meet once every six months and at such other times as the chair of the commission may determine.

4. a. The commission shall:

(1) conduct a comprehensive review of all executive branch departments and agencies to identify:

(a) overlapping or redundant functions;

(b) inefficiencies in service delivery or reporting structures;

(d) opportunities to enhance legislative oversight.

(2) solicit input from frontline public employees and department leadership;

(3) develop a modernization blueprint with legislative and administrative recommendations; and

(4) submit an annual report to the Governor and to the Legislature, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), detailing its findings and recommendations by March 1 of each year, beginning the calendar year after the enactment of P.L. , c. (pending before the Legislature as this bill).

b. The commission shall abide by the following guiding principles:

(1) reforms shall utilize natural attrition, retirements, and reallocation to implement changes and cannot mandate layoffs or workforce reductions;

(2) proposals shall be data-driven, practical, and preserve critical public services; and

(3) the commission shall evaluate cost savings, service quality, and accountability.

c. The commission may hold hearings and public meetings, request data and information from any department or agency, and hire staff or consultants as necessary within the limits of funds appropriated or otherwise made available to it for its purposes.

d. All commission meetings shall be subject to the “Senator Byron M. Baer Open Public Meetings Act,” P.L.1975, c.231 (C.10:4-6 et seq.).

e. The commission shall create an online portal on the New Jersey Department of State’s website for comment and feedback on potential reforms.

5. This act shall take effect immediately and shall expire five years after the date of enactment, unless reauthorized by the Legislature.

STATEMENT

This bill establishes the New Jersey Government Restructuring and Modernization Commission, a bipartisan and collaborative body tasked with reviewing the structure and operations of New Jersey’s executive branch departments and agencies to recommend improvements in efficiency, transparency, and accountability.

New Jersey faces a structural budget deficit, and this legislation recognizes that part of the solution needs to include a thorough review of how the State government operates. Unlike similar efforts in the past, this commission is designed to take a strategic and long-term approach, grounded in institutional knowledge, inter-branch collaboration, and operational reality.

The 15-member commission will include representatives from the executive branch, the Legislature, frontline public employees with a decade or more of State service, and public members with expertise in governance or fiscal policy. The goal is to bring together those who understand government from the inside with those who can challenge outdated structures and propose modern solutions.

Importantly, this bill does not authorize layoffs or workforce reductions. Any structural or organizational reforms proposed must rely on natural attrition, retirements, and reallocation of personnel. This ensures that the process is both fiscally responsible and humane, avoiding unintended consequences that might disrupt vital public services or harm career public servants.

The commission will deliver a modernization blueprint, and submit a report annually to the Governor and Legislature, identifying redundant programs, recommending agency consolidations, and proposing improvements to inter-agency coordination and oversight. All meetings will be public and transparent, with input from employees and the public encouraged through a designated online portal. The bill requires staff and related support services to be provided to the commission by the New Jersey Department of State.

By promoting collaboration between the executive and legislative branches and empowering experienced public employees to have a seat at the table, this bill represents a responsible, inclusive, and forward-thinking path to reimagining how New Jersey government works, and for whom it works.