SENATE HIGHER EDUCATION COMMITTEE

STATEMENT TO

SENATE, No. 4881

with committee amendments

STATE OF NEW JERSEY

DATED:  NOVEMBER 17, 2025

     The Senate Higher Education Committee reports favorably Senate Bill No. 4881 with committee amendments.

     As amended, this bill provides for the merger of New Jersey City University with Kean University and expands the powers and property of Kean University.   

The bill authorizes Kean University to merge with New Jersey City University subject to the completion of the requirements contained in the October 1, 2025 agreement executed between the two institutions of higher education and upon notification by the President of Kean University to the Secretary of Higher Education of satisfaction of certain conditions within the agreement.

  The bill further provides that:

· all of the functions, powers, duties, and rights of New Jersey City University are to be transferred and assigned to Kean University;

· all of New Jersey City University’s rights, title, and interest in its colleges, schools, institutes, and centers, its auxiliary and supporting institutions and the campuses located in Jersey City, New Jersey are to be transferred to Kean University; and   

· all references to New Jersey City University in any law, rule, regulation, order, contract, document, judicial or administrative proceeding, or otherwise are to mean Kean University.  

The bill provides that any New Jersey City University property owned by the New Jersey Educational Facilities Authority and transferred to Kean university is to be in accordance with certain State law. 

The bill nullifies any restrictions contained in any deed on any unimproved real property acquired by Kean University from New Jersey City University pursuant to the merger.  The bill also excludes any sale by Kean University of unimproved real property from certain approvals required under State law.  The bill clarifies that certain provisions in the bill relating to property are to be effectuated immediately upon the closing of the acquisition of New Jersey City University by Kean University and will require no additional action on the part of Kean University. 

     The bill directs all State governmental entities to take all necessary steps to effectuate this merger in transferring all of New Jersey City University’s interests to Kean University.

     The bill further provides that Kean University is to receive:

· all appropriations, grants, research funds, and other moneys available and to become available to New Jersey City University; and

· all files, books, papers, records, equipment, and other property of New Jersey City University. 

     State financial support is provided to Kean University through the bill.  Specifically, the bill provides that Kean University is to receive:

· various State appropriations equal to those provided to New Jersey City University in fiscal year 2026;

· institutional stabilization aid to be appropriated annually for each of the next three years;

· the full number of State-funded positions at New Jersey City University in fiscal year 2026; and

· a commitment from the State to assist Kean University in its efforts to reduce, through defeasance or other financial means, the debt of New Jersey City University held by the New Jersey Educational Facilities Authority and the New Jersey Economic Development Authority.

     The bill includes language providing the level at which students receiving Tuition Aid Grants are to be supported.    

     Under the bill, all orders, rules, and regulations of New Jersey City University are to be deemed null and void, unless continued by Kean University.

     The bill provides that Kean University is to represent New Jersey City University in any civil or criminal actions or proceedings. 

     The bill includes various provisions pertaining to the employees of New Jersey City University, who are to be considered new employees of Kean University.  Under the bill, these employees are to:

· retain certain rights with respect to State benefits and any tenure rights or academic rank acquired at New Jersey City University;

· be subject to the employment policies of Kean University;

· be transferred to the appropriate collective negotiations units at Kean University; and

· maintain their Civil Service classification status, if appropriate.

The bill provides that upon employment with Kean University, former New Jersey City University employees holding a faculty position will not retain seniority acquired while employed by New Jersey City University.  Employees holding a faculty position who acquired tenure with New Jersey City University are to be hired by Kean University with tenure.  Former employees of New Jersey City University holding a faculty position who are hired with tenure by Kean University are to  maintain their academic rank and are not to be counted toward any cap established on the total number of new full-time tenure-track faculty members hired at the institution.  The bill provides that the merger of New Jersey City University and Kean University will not require any further approval from any officer, commission, agency, or authority of the State.

      Under the bill, Kean University will have the care, custody, control, and title of any property the institution acquires as part of a merger or consolidation with another nonprofit corporation formed and operated primarily for educational purposes or with a public institution of higher education, subject to the visitorial powers of the Secretary of Higher Education at the request of the Governor and the conveyance terms for any property owned by the New Jersey Educational Facilities Authority.

      The bill revises existing law to provide that the Kean University board of trustees is to elect its chairperson annually in September, rather than July, and to ensure that at least one member of the board is a resident of Hudson County.

      The bill provides that a student representative on the Kean University board of trustees is to be elected through a vote of the student body, rather than a vote of the student government association, and revises how vacancies in these positions are to be filled. 

      The bill makes numerous changes, clarifications, and additions to the powers and duties of the board of trustees of Kean University, including the power or duty to:

· merge or consolidate with another nonprofit corporation formed and operated primarily for educational purposes, or with another public institution of higher education and to assume all vested rights, grants, charter rights, privileges, exemptions, immunities, powers, prerogatives, franchises or advantages, debts, or liabilities of the institution being acquired;

· modify its corporate seal;

· approve the establishment or discontinuance of educational programs, departments, or schools;

·  enter into contracts and agreements with other public institutions of higher education and their subsidiaries and affiliates;

· merge or consolidate, including through or with subsidiary corporations created by the university, with one or more other nonprofit corporations; and

· authorize any other new program, educational department, or school.

      The bill further:

· provides that any public employees of the university who may be assigned to support any joint venture, subsidiary corporation, partnership, or other jural entity of the university will continue to be deemed public employees;

· provides that the university may elect to not be represented by the Attorney General in any matter in which the university is solely responsible for any potential liability;

· removes a requirement that the university carry its own liability insurance; 

· provides that mergers or consolidations with subsidiary corporations created by the university after the bill’s effective date will not require the approval of the Office of the Attorney General;

· authorizes Kean University to be a participating contracting unit in a joint purchasing agreement;

· removes a requirement that notice be posted prior to a meeting of any committees of the Kean University board of trustees on the university’s website;

· removes a requirement that the minutes of meetings of any committees of Kean University’s board of trustees be posted on the university’s website;

· extends the law protecting any trustee or officer of Kean University from personal liability for any debt, obligation, or liability of the university to any debt, obligation, or liability incurred by or on behalf of a university subsidiary or affiliate; and

· maintains the current structure for the Statewide collective negotiations units at Kean University, and clarifies that any person who becomes an employee of Kean University or a subsidiary corporation of the university through a merger or consolidation with another entity, is to be deemed a public employee, become a member of the Statewide collective negotiations unit which encompasses the employee’s position as applicable, and be represented by the majority representatives of that unit.

      Finally, the bill repeals the law establishing the Henry John Raimondo Chair in Urban Public Policy Research at New Jersey City University.

COMMITTEE AMENDMENTS:

The committee amended the bill to:

· provide that any New Jersey City University property owned by the New Jersey Educational Facilities Authority which is transferred to Kean University is to be in accordance with certain State law;

· nullify any restrictions contained in any deed on any unimproved real property acquired by Kean University from New Jersey City University pursuant to the merger;

· exclude any sale by Kean University of unimproved real property from certain approvals required under State law; 

· clarify that certain provisions in the bill relating to property are to be effectuated immediately upon the closing of the acquisition of New Jersey City University by Kean University and will require no additional action on the part of Kean University;

· remove a provision stating that seniority, tenure, and academic rank of New Jersey City University employees are not transferable;

· add a provision stating that the bill is not to be construed to deprive any person of any tenure rights or academic rank acquired at New Jersey City University;

· clarify that nothing in the bill regarding debt is to be construed to limit the ability of Kean University to refinance, re-amortize, restructure or otherwise amend the existing debt obligations of New Jersey City University upon or following the merger;

· provide that if a New Jersey City University employee’s title is not recognized by any collective negotiations unit at Kean University, then Kean University or any majority representative may utilize the procedures for unit clarification established in the regulations of the Public Employment Relations Commission to determine whether the employee will continue to be represented by an existing majority representative at Kean University, or be included within another Executive Branch bargaining unit as defined under State law;

· clarify that the bill is not to be construed as limiting Kean University from taking any necessary personnel action subject to Civil Service requirements and the terms of any applicable collective negotiations requirements; 

· remove a provision that withheld seniority, tenure, and academic rank from New Jersey City University faculty upon employment with Kean University;

· remove a provision that would (1) nullify any prior finding of financial instability issued by the Secretary of Higher Education with respect to NJCU upon the merger with Kean University; and (2) terminate the appointment of the State monitor;

· provide that upon employment with Kean University, former New Jersey City University employees holding a faculty position will not retain seniority acquired while employed by New Jersey City University.  Employees holding a faculty position who acquired tenure with New Jersey City University are to be hired by Kean University with tenure.  Former employees of New Jersey City University holding a faculty position who are hired with tenure by Kean University are to  maintain their academic rank and are not to be counted toward any cap established on the total number of new full-time tenure-track faculty members hired at the institution;

· maintain a requirement that the Kean University board of trustees is to consult with the faculty prior to the adoption of its bylaws; and

· makes technical changes.