A5890

An Act establishing the Department of Commerce as a principal department in the Executive Branch of State government, supplementing Title 52 of the Revised Statutes, amending P.L.1974, c.55, and making an appropriation.

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

1. (New section) This act shall be known and may be cited as the “New Jersey Secretary of Commerce Act.”

2. (New section) The Legislature finds and declares that:

a. New Jersey’s economy is one of the most diverse in the nation, yet retaining and attracting businesses and creating high-quality jobs within the State remains a challenge.

b. Although the State’s economic policy seeks to stimulate economic growth through coordination across all economic sectors, departments, and agencies, the State has experienced a decrease in the coordination and centralization of these efforts following the abolishment of the Department of Commerce and Economic Development.

c. The New Jersey Commerce and Economic Growth Commission, later renamed the New Jersey Commerce Commission, was established after the abolishment of the Department of Commerce and Economic Development to streamline the coordination of economic development in the State but was subsequently abolished.

d. The decentralization of New Jersey’s economic growth policy has hindered the State’s ability to coordinate a cohesive policy approach to attract, foster, and retain business, industry, and innovation.

e. A centralized, streamlined, and strategic approach to commerce and economic development is essential for the long-term competitiveness of the State’s business climate.

f. Therefore, it is in the best interest of the citizens of this State to establish a principal department within the Executive Branch of State government to serve as a centralized focus for business and industrial concerns within the State.

3. (New section) As used in this act:

“Secretary” means the Secretary of the Department of Commerce, the office established pursuant to section 5 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

“Department” means the Department of Commerce established pursuant to section 4 of P.L. , c. (C. ) (now pending before the Legislature as this bill).

4. (New section) There is established in the Executive Branch of State government a principal department which shall be known as the Department of Commerce.

5. (New section) The administrator and chief executive officer of the department shall be a secretary, who shall be known as the Secretary of Commerce, and who shall be a person qualified by training and experience to perform the duties of the office. The secretary shall be appointed by the Governor, with the advice and consent of the Senate, and shall serve at the pleasure of the Governor during the Governor's term of office and until the appointment and qualification of the secretary's successor. The secretary’s entire time shall be devoted to the duties of the office and the secretary shall receive a salary as shall be provided by law. Any vacancy occurring in the office of the secretary shall be filled in the same manner as the original appointment.

6. (New section) The department and the secretary shall be responsible for the activities of the State government in the support and development of:

a. business, industry, and innovation through aid, promotion, and advertising;

b. domestic and foreign commerce;

c. business and technological growth; and

d. any program as determined by the department.

7. (New section) The secretary shall:

a. serve as the State’s chief economic development officer and principal advisor to the Governor on matters of commerce and economic policy;

b. coordinate Statewide efforts to promote job creation, business expansion, and workforce development;

c. oversee the formulation and execution of a Statewide economic development strategy;

d. serve as the primary liaison to the business community and lead efforts to reduce barriers to business investment in the State;

e. collaborate with the Economic Development Authority, the Department of Labor and Workforce Development, the Department of the Treasury, and other agencies as necessary;

f. represent New Jersey in national and international trade and commerce initiatives;

g. perform, exercise, and discharge the functions, powers, and duties of the department through divisions as may be established by P.L. , c. (C. ) (pending before the Legislature as this bill) or otherwise by law;

h. organize the work of the department in divisions not inconsistent with the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) and in bureaus and other organizational units as the secretary may determine to be necessary for efficient and effective operation of the department;

i. appoint and remove officers and other personnel employed within the department, subject to the provisions of Title 11A of the New Jersey Statutes, and other applicable statutes, except as otherwise specifically provided;

j. have authority to organize and maintain an administrative division and to employ secretarial, clerical, and other assistants in the department as the secretary’s office and the internal operations of the department may require in accordance with Title 11A of the New Jersey Statutes;

k. submit an annual State of Commerce report to the Governor and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature of the department's operations, business trends, key metrics, and recommendations for improving State economic policy;

l. adopt, issue, and promulgate, in the name of the department, pursuant to the "Administrative Procedure Act," P.L.1968, c. 410 (C. 52:14B-1 et seq.), rules and regulations as may be authorized by law;

m. formulate and adopt rules and regulations for the efficient conduct of the work and general administration of the department, its officers, and employees;

n. institute or cause to be instituted legal proceedings or processes as may be necessary to properly enforce and give effect to any of the secretary’s powers or duties;

o. coordinate the activities of the department, and the several divisions and other agencies therein, in a manner designed to eliminate overlapping and duplicative functions;

p. integrate within the department, so far as practicable, all staff services of the department and of the several divisions and other agencies therein;

q. have access to all relevant files and records of other State agencies and require any officer or employee therein to provide any information as the secretary may deem necessary in the performance of the functions of the department;

r. maintain suitable headquarters for the department and any other quarters as the secretary shall deem necessary to the proper functioning of the department; and

s. perform other functions as may be prescribed in P.L. , c. (C. ) (pending before the Legislature as this bill) or by any other law.

8. (New section) The secretary shall appoint a deputy secretary, who shall be designated to perform all of the powers, functions, and duties of the secretary during the absence or disability of the secretary, and who shall perform other duties as are assigned by the secretary. The appointment shall be subject to the approval of the Governor and shall be filed with the Secretary of State. The deputy secretary shall be a person qualified by training and experience to perform the duties of the office.

9. (New section) a. The Business Action Center, formerly known as the Division of Business Assistance, Marketing, and International Trade within the New Jersey Economic Development Authority, established pursuant to P.L.2008, c.27 (C.34:1B-210 et seq.) and renamed and transferred to the Department of State pursuant to Executive Reorganization Plan No. 003-2011, together with all its functions, powers, and duties, is continued and transferred to the department.

b. Whenever, in any law, rule, regulation, order, contract, document, judicial or administrative proceeding, or otherwise, reference is made to the Business Action Center, the Division of Business Assistance, Marketing, and International Trade, the New Jersey Commerce Commission, or the Department of Commerce and Economic Development, the same shall mean and refer to the Business Action Center in the Department of Commerce. Notwithstanding the provisions of any law, rule, regulation, or order to the contrary, the secretary of the department shall appoint the executive director of the Business Action Center.

c. This transfer shall be subject to the provisions of the "State Agency Transfer Act," P.L.1971, c.375 (C.52:14D-1 et seq.).

10. (New section) Within three months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the secretary, after consultation with all division directors, the State Treasurer, and the commissioners of appropriate commissions and executive departments, including but not limited to the Department of Labor and Workforce Development, the Department of State, the Department of Environmental Protection, and the Office of the Secretary of Higher Education, shall prepare and submit a report to the Governor, and, pursuant to section 2 of P.L.1991, c.164 (C.52:14-19.1), to the Legislature, identifying:

a. those functions and duties currently exercised by other departments, divisions, agencies, commissions, councils, boards, offices, or bureaus of State government relating to commerce, economic development, and innovation that may be appropriately transferred to the department; and

b. those functions and duties transferred to the department pursuant to the provisions of P.L. , c. (C. ) (pending before the Legislature as this bill) that may be appropriately transferred to other departments. The transfers may be effectuated by executive order or law, as is necessary.

11. (New section) a. Within six months of the effective date of P.L. , c. (C. ) (pending before the Legislature as this bill), the secretary of the department shall review the operations, personnel, and staff organization of those agencies transferred from the Department of State to the Department of Commerce and, with the approval of the Civil Service Commission and the Office of Management and Budget, establish a plan, if needed, for reorganization and transfer of personnel.

b. Nothing in this section shall be construed to deprive employees of any rights or protections provided by Title 11A of the New Jersey Statutes or the pension and retirement laws of this State.

12. (New section) There is appropriated from the General Fund funds as may be necessary to be allocated for the implementation of P.L. , c. (C. ) (pending before the Legislature as this bill), subject to the approval of the Office of Management and Budget in the Department of the Treasury.

13. Section 1 of P.L.1974, c.55 (C.52:14-15.107) is amended to read as follows:

1. Notwithstanding the provisions of the annual appropriations act and section 7 of P.L.1974, c.55 (C.52:14-15.110), the annual salary for each of the following officers shall be $210,000 in calendar year 2024 and thereafter:

Title

Agriculture Department

Secretary of Agriculture

Children and Families Department

Commissioner of Children and Families

Commerce Department

Secretary of Commerce

Community Affairs Department

Commissioner of Community Affairs

Corrections Department

Commissioner of Corrections

Education Department

Commissioner of Education

Environmental Protection Department

Commissioner of Environmental Protection

Health Department

Commissioner of Health

Human Services Department

Commissioner of Human Services

Banking and Insurance Department

Commissioner of Banking and Insurance

Labor and Workforce Development Department

Commissioner of Labor and Workforce Development

Chairperson of the Civil Service Commission

Law and Public Safety Department

Attorney General

Colonel and Superintendent, State Police

Director of the Office of Homeland Security and Preparedness

Military and Veterans' Affairs Department

Adjutant General

State Department

Secretary of State

Secretary of Higher Education

Transportation Department

Commissioner of Transportation

Chief Administrator, New Jersey Motor Vehicle Commission

Treasury Department

State Treasurer

State Comptroller

Chief Technology Officer

Members, Board of Public Utilities

(cf: P.L.2023, c.349, s.5)

14. This act shall take effect immediately.

STATEMENT

This bill establishes the Department of Commerce as a principal department in the Executive Branch of State government.

The administrator and chief executive officer of the department will be known as the Secretary of Commerce, and who is to be a person qualified by training and experience to perform the duties of the office. The secretary will be appointed by the Governor, with the advice and consent of the Senate, and will serve at the pleasure of the Governor during the Governor's term of office and until the appointment and qualification of the secretary's successor. The secretary will devote their entire time to the duties of the office and will receive a salary as provided by law. Any vacancy occurring in the office of the secretary will be filled in the same manner as the original appointment.

The department and the secretary are to be responsible for the activities of the State government in the support and development of business, industry, and innovation through aid, promotion, and advertising, domestic and foreign commerce, business and technological growth, and any program as determined by the department.

The Business Action Center in the Department of State is transferred, together with its functions, powers, and duties, to the department.

The bill requires the secretary to submit an annual State of Commerce report to the Governor and the Legislature regarding the department's operations, business trends, key metrics, and recommendations for improving State economic policy.

This bill provides that, within three months of the effective date of the bill, after consultation with all division directors, the secretary, after consultation with all division directors, the State Treasurer, and the commissioners of appropriate commissions and executive departments, including but not limited to the Department of Labor and Workforce Development, the Department of State, the Department of Environmental Protection, and the Office of the Secretary of Higher Education, is to prepare and submit a report to the Governor and to the Legislature identifying: those functions and duties currently exercised by other departments, divisions, agencies, commissions, councils, boards, offices, or bureaus of State government relating to commerce, economic development, and innovation that may be appropriately transferred to the department and those functions and duties transferred to the department pursuant to the provisions of this bill that may be appropriately transferred to other departments. The transfers may be effectuated by executive order or law, as is necessary.

Within six months of the effective date of the bill, the secretary, in consultation with the Commissioner of Labor and Workforce Development, the State Treasurer, and the Secretary of State, is required to jointly review the operations, personnel, and staff organization of those agencies transferred from the Department of the Treasury and the Department of State to the Department of Commerce and, with the approval of the Civil Service Commission and the Office of Management and Budget, establish a plan, if needed, for the reorganization and transfer of personnel.