SENATE STATE GOVERNMENT, WAGERING, TOURISM & HISTORIC PRESERVATION COMMITTEE

STATEMENT TO

SENATE, No. 4373

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMber 1, 2025

      The Senate State Government, Wagering, Tourism & Historic Preservation Committee reports favorably and with committee amendments Senate Bill No. 4373.

As amended by the committee, this bill would make various changes to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), which establishes the procedures by which State agencies adopt rules and regulations.  The bill would also establish a "Commission on Efficiency and Regulatory Review" to review rules and regulations and Executive Orders issued, respectively, by a State agency or by the Governor.  In addition, the bill would require the Department of Environmental Protection (DEP) to convey certain information regarding permit issuances to the Legislature.

     The bill would establish the Commission on Efficiency and Regulatory Review in the Office of Administrative Law in the Department of the Treasury.  The commission would be chaired by a member of the public appointed by the Governor with the advice and consent of the Senate, and would be composed of various members of the Executive Branch and the Legislature, or their designees.  Section 2 of the bill would establish the duties of the commission, including to review all proposed and adopted rules and regulations and operative Executive Orders issued by the Governor to: assess their potential or actual effects on the State's economy; determine whether their costs and other burdens on businesses, workers, and local governments outweigh their intended benefits; and establish a basis for providing recommendations to the Governor for the amendment, rescission, or repeal of any rules, regulations, or Executive Orders that unduly burden the State's businesses, workers, and local governments.

     The bill would also amend P.L.1991, c.423 (C.13:1D-105), which established a three-year requirement for the DEP to provide an annual report to the Legislature on DEP permit applications and issuances, in order to make this requirement permanent.

     Finally, as amended, the bill would amend the "Administrative Procedure Act" to:

     (1)  require the socio-economic impact statement that accompanies proposed rules to include an assessment of the proposed rule's effects on the State's economy;

     (2)  require proposed rules to be accompanied by a cost-benefit analysis;

     (3)  require State agencies to use the best available scientific reports, data, and studies when formulating the various rulemaking impact statements that are required under law and to make those reports, data, and studies available to the public upon the publication of the rule proposal;

     (4)  require the Office of Administrative Law to review and certify the adequacy of rulemaking impact statements;

     (5)  require State agencies to file a statement of intent for each rule proposal at least 90 days prior to the formal notice of action for the rule proposal, and to accept public comment on the rule proposal;

     (6)  require that, in order to make substantive changes to a rule proposal upon adoption, the potential changes must be a logical outgrowth of the proposed rule; otherwise, the agency may alternatively adopt substantial changes by following the procedure set forth in law instead of filing a new proposal;

     (7)  allow State agencies to extend existing rules with no changes or technical changes using an expedited process only if the rule extension proposal receives no adverse comments from the public.  If the proposal receives adverse public comment, the agency would be required to readopt the rules using the ordinary process under the "Administrative Procedure Act"; and

     (8)  clarify that rule extensions with substantive changes are required to be effectuated using the ordinary process under the "Administrative Procedure Act," not an expedited process.

COMMITTEE AMENDMENTS:

      The committee amended the bill to require that the scientific reports, data, and studies used by the agency to support a rule to be made available to the public upon the publication of the rule proposal.

      The committee also amended the bill to allow an agency to make substantial changes to a rule upon adoption of the rule if the changes are a logical outgrowth of the proposed rule.  The agency may alternatively adopt substantial changes by following the procedure set forth in law instead of filing a new proposal.

      Finally, the committee amended the bill to make a technical change.