A bill aimed at increasing transparency in New Jersey’s state rulemaking process has advanced in the Senate. The Senate State Government, Wagering, Tourism & Historic Preservation Committee unanimously voted to move forward with S-4373, a measure sponsored by Senate President Nicholas Scutari (D-22). The legislation is strongly supported by the New Jersey Business & Industry Association (NJBIA).
The bill seeks to revise the Administrative Procedures Act (APA) and establish a Commission on Efficiency and Regulatory Review within the Office of Administrative Law. This commission would oversee proposed changes and review both new and existing regulations as well as executive orders.
Ray Cantor, NJBIA Deputy Chief Government Affairs Officer, stated, “While the APA was intended to make the rule-making process public and to take in public comments, the reality often does not meet the intended goals.” He added, “Too often, rules that go along with newly created laws are developed secretly by bureaucratic staff who draft language to regulate industries they don’t understand. The unfortunate result of this is the establishment of conditions that do not work in the real world.”
Cantor also noted issues with how public input is currently handled: “While the APA allows public comments on proposed rules, and the agencies are required to respond to those comments, the reality is that the APA largely prohibits making necessary changes to the proposed rules in response to those comments.”
He said he believes that “This bill will make for a better process to yield better results for New Jersey residents.”
Key provisions of S-4373 include requiring socio-economic impact statements and cost-benefit analyses for proposed rules. State agencies would need to use reliable scientific data when preparing these documents. The Office of Administrative Law would be responsible for reviewing and certifying their adequacy.
The bill also calls for state agencies to file a statement of intent at least 90 days before formally proposing a rule and requires an opportunity for public comment during this period. Agencies could extend existing rules through an expedited process if there are no adverse public comments.
If substantive changes arise from public input but remain closely related to what was initially proposed, they can be incorporated upon adoption; otherwise, a new proposal must be submitted.
The newly created commission would assess both proposed and existing regulations as well as executive orders issued by the governor. Its tasks include evaluating economic impacts, weighing costs against benefits for businesses and local governments, and recommending amendments or repeals if any measures place undue burdens.
Cantor commented on potential outcomes: “If this bill becomes law, costs will be saved, compliance will increase, litigation will decrease, and the goals of the law will be more easily met through regulation.” He added gratitude for legislative support: “We thank Senate President Nick Scutari for his sponsorship of this legislation, and we will work with him and our business colleagues to ensure a swift passage.”
