New Jersey S 1504: Establishes process for merger or consolidation of public institution of higher education with other institutions of higher education or certain proprietary institutions; requires executive and legislative approval of merger or consolidation.

Bill Text

S1504 

SENATE, No. 1504 

STATE OF NEW JERSEY

222nd LEGISLATURE

� 

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Senator JOSEPH P. CRYAN

District 20 (Union)

SYNOPSIS

���� Establishes process for merger or consolidation of 
public institution of higher education with other institutions of higher 
education or certain proprietary institutions; requires executive and 
legislative approval of merger or consolidation.

CURRENT VERSION OF TEXT 

���� Introduced Pending Technical Review by Legislative 
Counsel.

�� 

An Act concerning mergers of institutions of higher education 
and certain proprietary institutions and supplementing Title 18A of the New 
Jersey Statutes.� 

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

���� 1.� a. �As used in this 
section, �participating institution� means an institution of higher education 
or degree-granting proprietary institution that is party to a merger or 
consolidation. 

���� b.� Notwithstanding any other 
provision of law to the contrary, and subject to the approval process 
established pursuant to subsections c. and d. of this section, the governing 
board of a public institution of higher education shall have the power to merge 
or consolidate with one or more� institutions of higher education or 
degree-granting proprietary institutions and shall assume any vested rights, 
grants, charter rights, other than those retained pursuant to N.J.S.18A:68-6, 
privileges, exemptions, immunities, powers, prerogatives, franchises or 
advantages, debts, or liabilities of the� institutions with which it merges or 
consolidates.

���� c.� � Prior to commencing the 
institutional merger or consolidation:

���� (1) �the governing board of 
each participating institution shall adopt a resolution to enter into the 
institutional merger or consolidation; and

���� (2) �within 30 days of the 
adoption of the last resolution pursuant to paragraph (1) of this subsection, 
the participating institutions shall submit a joint application to the 
Secretary of Higher Education for preliminary approval. 

���� The secretary shall notify 
each participating institution of the preliminary approval or disapproval 
within 30 days of receipt of the application.��� 

���� d.� Upon receipt of the 
secretary�s preliminary approval to participate in the institutional merger or 
consolidation, the governing boards of the participating institutions shall 
jointly develop and submit a comprehensive plan for the institutional merger or 
consolidation to the secretary for final review and approval.� The plan shall 
be developed and reviewed according to standards set forth by the secretary.

���� e. �Prior to determining a 
final executive approval or disapproval of the proposed merger or 
consolidation, the secretary shall review the comprehensive plan and assess:

���� (1) �the need for the 
institutional merger or consolidation; 

���� (2) �whether the institutional 
merger� or consolidation is in the best interest of the State and the affected 
parties, including prospective and current students, institutional faculty and 
staff, and the institutions� host communities; and 

���� (3) �any other relevant 
factors and criteria determined by the secretary.

���� f. �The secretary may utilize 
the assistance of an external consultant team, solicit comments from interested 
parties, hold public hearings at the campuses of the participating 
institutions, and consult with the Higher Education Student Assistance 
Authority and the New Jersey Presidents� Council, as appropriate, in reviewing 
the comprehensive plan.� Costs incurred by the secretary in reviewing the 
comprehensive plan shall be borne by the participating institutions.� 

���� g.� The secretary shall issue 
a final approval or disapproval of the merger or consolidation and issue a 
written certification to the governing boards of all participating 
institutions.� 

���� 2. �The Secretary of Higher 
Education shall submit to the Legislature a copy of the written certification 
of the approval of a merger or consolidation issued pursuant to section 1 of 
this act.� If the Legislature does not disapprove the merger or consolidation 
by the adoption of a concurrent resolution within 90 days, the merger or 
consolidation shall be deemed to be authorized. The secretary and the 
participating institutions shall provide to the Legislature such information 
concerning the merger or consolidation as the Legislature may require for its 
consideration.

���� 3. �a.� Upon completion of an 
institutional merger or consolidation, the secretary shall determine whether 
the institutional merger or consolidation has been successfully executed and, 
upon finding that the institutional merger or consolidation has been successfully 
executed, the secretary shall authorize, as needed, any necessary changes to 
the licensure of the single remaining public institution.

���� b.� Upon completion of an 
institut