ASSEMBLY, No. 4315

STATE OF NEW JERSEY

215th LEGISLATURE

INTRODUCED JUNE 24, 2013

 


 

Sponsored by:

Assemblyman  VINCENT PRIETO

District 32 (Bergen and Hudson)

Assemblyman  CHARLES MAINOR

District 31 (Hudson)

Assemblywoman  ANGELICA M. JIMENEZ

District 32 (Bergen and Hudson)

 

Co-Sponsored by:

Assemblyman Burzichelli and Assemblywoman Riley

 

 

 

 

SYNOPSIS

     Eliminates the board of trustees of Rutgers University and provides that its powers will be exercised by the board of governors of the university.

 

CURRENT VERSION OF TEXT

     As introduced.

 


An Act concerning Rutgers, The State University and revising parts of the statutory law.

 

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

 

     1.    N.J.S.18A:65-14 is amended to read as follows:

     18A:65-14. The membership of the board of governors shall be classified as follows and consist of:

     a.    the president of the corporation, serving as an ex officio non-voting member; and

     b.    15 voting members,

     [i.   seven of whom] who shall be appointed by the Governor of the State, with the advice and consent of the Senate, with one of these members being a resident of Camden County, and one of [whom shall be] these members appointed [by the Governor] upon the recommendation of the President of the Senate and the Speaker of the General Assembly and who shall be a resident of Essex County [, and

     ii.    seven of whom shall be appointed by the board of trustees, from among their members, one of whom shall be a resident of Essex County and one of whom shall be a resident of Middlesex County, elected and serving under the provisions of subsection I.c. or I.d. of 18A:65-15].

     The first additional appointments made by the Governor pursuant to P.L.2012, c.45 (C.18A:64M-1 et al.), shall not require the advice and consent of the Senate, but thereafter such advice and consent shall be required.

     All members shall serve for terms of six years, except that the terms of those initially appointed by the Governor which began on September 1, 1956, shall expire respectively (as designated by him) one, two, three, four, five and six years after June 30, 1956 [, and terms of those initially appointed by the board of trustees which began on September 1, 1956, shall expire respectively (as designated by the board) two, three, four, five and six years after June 30, 1956]; all of whose respective successors shall be appointed to serve six-year terms. Governors may succeed themselves for not more than one additional term after having served one full six-year term (including an initial term beginning on September 1, 1956, and expiring on June 30, 1962).

(cf: P.L.2012, c.45, s.87)

 

     2.    Section 20 of P.L.2012, c.45 (C.18A:65-14.1) is amended to read as follows:

     20.  a. As used in this section, "northern counties" means Bergen, Essex, Hudson, Morris, Passaic, Union, Sussex, and Warren Counties.

     b.    Effective July 1, 2013, a campus advisory board shall be appointed for Rutgers University-Newark. The campus advisory board shall work with the chancellor of Rutgers University-Newark in implementing the teaching, research, and service mission of Rutgers University-Newark, the engagement of the campus with its local community, its region, and the State, and its commitment to academic excellence, access, and diversity.

     The campus advisory board shall be composed of 13 members as follows: the chancellor of Rutgers University-Newark who shall serve ex-officio; [the] a member of the board of governors of Rutgers, The State University [who is appointed by the board of trustees and who is, pursuant to N.J.S.18A:65-14, required to be a resident of Essex County]; two Rutgers University-Newark faculty members one of whom is appointed by the faculty union and one of whom is elected by the Rutgers Newark Faculty Council; one member of the Rutgers University-Newark administration appointed by the Rutgers University-Newark chancellor; one Rutgers University-Newark staff member selected from among the staff unions; two student representatives appointed by the Rutgers University-Newark student governing association; three members of the local community, two of whom shall be selected by the Office of Community Affairs from community organizations with one of these members being an alumnus of Rutgers University-Newark, and one of whom shall be selected by the Mayor of the City of Newark; and two public members who are appointed by the chancellor and who are residents of a northern county.

     All members shall serve a term of two years, renewable by reappointment or re-election in the same manner as the initial selection. A president of the advisory board shall be selected for a one-year term by a vote of the members of the campus advisory board, and may be so elected for successive terms without limit.

     A member shall be subject to removal, after a hearing by a majority of the campus advisory board, for malfeasance or conduct injurious to the interest of Rutgers University-Newark.

     The board shall meet and organize annually at a regular meeting held during the second week in September. The president shall serve until the following September and until his successor is appointed and qualified. Vacancies in the offices shall be filled in the same manner for the unexpired term only.

     Members of the board shall serve without compensation but shall be reimbursed for all reasonable and necessary expenses.

     The campus advisory board shall hold at least one public meeting each semester.

(cf: P.L.2012, c.45, s.20)

     3.    Section 26 of P.L.2012, c.45 (C.18A:65-14.6) is amended to read as follows:

     26.  a. As used in this section, "southern counties" means Atlantic, Burlington, Camden, Cape May, Cumberland, Gloucester, Ocean, and Salem Counties.

     b.    Effective July 1, 2013, a campus board of directors shall be appointed for Rutgers University-Camden. The campus board of directors shall be composed of [10] eight members as follows: the chancellor of Rutgers University-Camden who shall serve as an ex-officio, nonvoting member; three members appointed by the board of governors of Rutgers University; [two members appointed by the board of trustees of Rutgers, The State University from among its non-public members;] and four members, who are residents of the southern counties, appointed by the Governor with the advice and consent of the Senate.

     The terms of office of a member appointed by the board of governors [or the board of trustees] of Rutgers University shall be coterminous with his term on that board. The members appointed by the Governor shall serve for terms of six years beginning on July 1 and ending on June 30; except that of the members first appointed by the Governor, one shall serve for a term of six years, one shall serve for a term of four years, one shall serve for a term of three years, and one shall serve for a term of two years. Each member shall serve until his successor is appointed and qualified, and vacancies shall be filled in the same manner as the original appointments for the remainder of the unexpired term. A director appointed by the Governor may succeed himself for not more than one additional term after having served one full six-year term.

     A director shall be subject to removal, after a hearing by a majority of the campus board of directors, for malfeasance or conduct injurious to the interest of Rutgers University-Camden, subject to review and confirmation by the Governor in the case of his appointees or by the board of governors [or the board of trustees, as applicable,] in the case of that board's appointees.

     c.    The board shall meet and organize annually at a regular meeting held during the second week of September, by the election of a chair, vice-chair, and such other officers as the board shall determine. The officers shall serve until the following September meeting and until their successors are elected and qualified. Vacancies in the offices shall be filled in the same manner for the unexpired term only.

     d.    Members of the board shall serve without compensation but shall be entitled to be reimbursed for all reasonable and necessary expenses.

(cf: P.L.2012, c.45, s.26)


     4.    Section 146 of P.L.2012, c.45 (C.18A:65-14.13) is amended to read as follows:

     146. Effective July 1, 2013, a campus advisory board shall be appointed for Rutgers University-New Brunswick. The campus advisory board shall work with the chancellor of Rutgers University-New Brunswick in implementing the teaching, research, and service mission of Rutgers University-New Brunswick, the engagement of the campus with its local community, its region, and the State, and its commitment to academic excellence, access, and diversity.

     The campus advisory board shall be composed of 11 members as follows: the chancellor of Rutgers University-New Brunswick who shall serve ex-officio; [the] a member of the board of governors of Rutgers, The State University [who is appointed by the board of trustees and who is, pursuant to N.J.S.18A:65-14, required to be a resident of Middlesex County]; two Rutgers University-New Brunswick faculty members one of whom is appointed by the faculty union and one of whom is elected by the Rutgers-New Brunswick Faculty Council; one member of the Rutgers University-New Brunswick administration appointed by the Rutgers University-New Brunswick chancellor; one Rutgers University-New Brunswick staff member selected from among the staff unions; two student representatives appointed by the Rutgers University-New Brunswick student governing association; and three members of the local community, two of whom shall be selected by the Office of Community Affairs from community organizations with one of these members being an alumnus of Rutgers University-New Brunswick, and one of whom shall be selected by the Mayor of the City of New Brunswick.

     All members shall serve a term of two years, renewable by reappointment or re-election in the same manner as the initial selection. A president of the advisory board shall be selected for a one-year term by a vote of the members of the campus advisory board, and may be so elected for successive terms without limit.

     A member shall be subject to removal, after a hearing by a majority of the campus advisory board, for malfeasance or conduct injurious to the interest of Rutgers University-New Brunswick.

     The board shall meet and organize annually at a regular meeting held during the second week in September. The president shall serve until the following September and until his successor is appointed and qualified. Vacancies in the offices shall be filled in the same manner for the unexpired term only.

     Members of the board shall serve without compensation but shall be reimbursed for all reasonable and necessary expenses.

     The campus advisory board shall hold at least one public meeting each semester.

(cf: P.L.2012, c.45, s.146)


     5.    N.J.S.18A:65-16 is amended to read as follows:

     18A:65-16.  (a) The terms of all governors [and trustees which are limited] shall, unless otherwise expressly provided herein, commence on July 1 in the first year, and end on June 30 in the last year, of such term.

     (b)   In case a governor [or a trustee] is elected president and he thereby becomes a nonvoting governor [or trustee] ex officio, a vacancy in his prior office as governor [or trustee] shall thereby occur.

     (c)   [In case a trustee is appointed a governor by the Governor of the State, and he thereby becomes a trustee during his term as governor, a vacancy in his prior office as trustee shall thereby occur.] Deleted by amendment, P.L.    , c.    ) (pending before the Legislature as this bill)

     (d)   Any vacancy occurring during the term of any governor [or trustee] (other than by the expiration of his term) shall be filled for the unexpired term only, in the same manner and subject to the same provisions, as in the case of his appointment [or election; subject, however, to the provisions of subsection I.d. of section 18A:65-15].

(cf: P.L. 1994, c.48, s .179)

 

     6.    N.J.S.18A:65-17 is amended to read as follows:

     18A:65-17.  No person, other than the president, shall be eligible to membership on the board of governors, if he is a salaried official of the State of New Jersey, or shall be eligible to membership on [either] the board of governors [or the board of trustees], if he is receiving remuneration for services from the corporation or the university.  If any member of [either] the board shall become ineligible by reason of the foregoing, a vacancy in his prior office as governor [or trustee, as the case may be,] shall thereby occur.

(cf: P.L.1994, c.48, s.180)

 

     7.    N.J.S.18A:65-18 is amended to read as follows:

     18A:65-18.  Each governor [and each trustee] taking office, before entering on the duties  of his office, shall take and subscribe an oath or affirmation to support the constitution of the state of New Jersey and of the United States, to bear  allegiance to the government of the state, and to perform the duties of his office faithfully, impartially and justly, to the best of his ability.

(cf: N.J.S.18A:65-18)

 

     8.    N.J.S.18A:65-19 is amended to read as follows:

     18A:65-19.  [(a)] Any governor shall be subject to removal after hearing, by a majority of  the board of governors, for malfeasance or conduct injurious to the interests  of the corporation or the university, subject to review and confirmation [(i)] by  the governor of the state [in the case of his appointees, and (ii) by the board  of trustees in the case of its appointees.

     (b)   Any trustee other than one serving under the provisions of subsection I.a. of 18A:65-15 shall be subject to removal after hearing for malfeasance or conduct injurious to the interests of the corporation or the university (i) by the governor of the state in the case of a trustee appointed by him or (ii) in the case of a trustee elected by the board of trustees, by a majority of the then membership of the board of trustees].

(cf: N.J.S.18A:65-19)

 

     9.    N.J.S.18A:65-20 is amended to read as follows:

     18A:65-20.  The governors [and trustees] shall not receive compensation for their services  as such.  Each governor [and trustee] shall be reimbursed for his actual expenses reasonably incurred in the performance of his duties or in rendering service as  a member of or on behalf of [either] the board or any committee of [either] the board.

(cf: N.J.S.18A:65-20)

 

     10.  N.J.S.18A:65-21 is amended to read as follows:

     18A:65-21.  No governor [, trustee] or officer of the corporation shall be personally liable for any debt, obligation or other liability of the corporation or of, or  incurred by or on behalf of, the university or any constituent unit thereof.

(cf: N.J.S.18A:65-21)

 

     11.  N.J.S.18A:65-22 is amended to read as follows:

     18A:65-22.  a.  Six members of the board of governors shall constitute a quorum.

     [b.  Such number, not less than 12, of the board of trustees as shall be determined by the board, and until so determined, 12 members, shall constitute a quorum.

     c.    A quorum of a joint meeting of the boards shall be present if six governors and not less than a majority of the trustees then in office (other than those who are governors), are present.]

(cf: N.J.S.18A:65-22)

 

     12.  N.J.S.18A:65-23 is amended to read as follows:

     18A:65-23.  The board of governors [and the board of trustees] shall [each] elect [its own] a chairman from among its [respective] members.

(cf: N.J.S.18A:65-23)

 

     13.  N.J.S.18A:65-24 is amended to read as follows:

     18A:65-24.  The government, control, conduct, management and administration of the corporation and of the university shall be [respectively] vested in [and allocated between] the board of governors [and the board of trustees] as set forth and expressed in this chapter.

(cf: N.J.S.18A:65-24)

 

     14.  N.J.S.18A:65-25 is amended to read as follows:

     18A:65-25.  The board of governors shall have general supervision over and be vested with the conduct of the university. It shall have the authority and responsibility to:

     a.    Determine policies for the organization, administration and development of the university;

     b.    Study the educational and financial needs of the university, annually acquaint the Governor and Legislature with the condition of the university, and prepare and present the annual budget to the Governor, the Division of Budget and Accounting in the Department of the Treasury and the Legislature, in accordance with law;

     c.    Disburse all moneys appropriated to the university by the Legislature, moneys received from tuition, fees, auxiliary services and other sources [, and from or by direction of the board of trustees];

     d.    Direct and control expenditure and transfer of funds appropriated to the corporation and the university by the State in accordance with the provisions of the State budget and appropriation acts of the Legislature; and, as to funds received from [the trustees and] other sources, direct and control expenditures and transfers in accordance with the terms of any applicable trusts, gifts, bequests, or other special provisions, reporting changes and additions thereto and transfers thereof to the Director of the Division of Budget and Accounting in the State Department of the Treasury. All accounts of the university shall be subject to audit by the State at any time;

     e.    Borrow money for the needs of the corporation and the university, as deemed requisite by the board, in such amounts and for such time and upon such terms as may be determined by the board [, with the consent and advice of the board of trustees]; provided, that no such borrowing shall be deemed or construed to create or constitute a debt, liability, or a loan or pledge of the credit, or be payable out of property or funds (other than moneys appropriated for that purpose) of the State;

     f.     1.  Purchase all lands, buildings, equipment, materials and supplies; and

     2.    Employ architects to plan buildings; secure bids for the construction of buildings and for the equipment thereof; make contracts for the construction of buildings and for equipment; and supervise the construction of buildings;

     g.    Manage and maintain, and provide for the payment of all charges on and expenses in respect of, all properties utilized by the university;

     h.    In accordance with the provisions of the budget, have the sole power (subject to the provisions of section 18A:65-31) to elect, appoint, remove, promote or transfer all corporate, official, educational and civil administrative personnel, and fix and determine their salaries in accordance with salary schedules adopted by the board of governors. Such salary schedules shall prescribe qualifications for the various classifications and shall limit the percentage of the educational staff that may be appointed or promoted to any given classification;

     i.     In accordance with the provisions of the budget, appoint, remove, promote and transfer all other officers, agents, or employees, assign their duties, determine their salaries, and prescribe qualifications for all positions, and in accordance with the salary schedules of the State Civil Service Commission wherever possible; and

     j.     Authorize any new educational department or school consistent with the institution's programmatic mission or approved by the [Commission on] Secretary of Higher Education.

(cf: P.L.1994, c.48, s.181)

 

     15.  N.J.S.18A:65-26 is amended to read as follows:

     The board of [trustees] governors:

     (1) [Shall act in an overall advisory capacity;

     (2)] Shall (a) control (i) properties, funds and trusts vested, as of August 31, 1956, in the corporation in possession or remainder or expectancy (other  than and expressly excluding properties and funds owned by or title to which is  in the state of New Jersey or which are held upon an express trust for the use  of the state, or which have been acquired by the use of moneys appropriated by  the state or by the federal government to the use of the corporation or the  land grant college of New Jersey, including but not limited to real estate, buildings, improvements, fixtures, and appurtenances thereto, and tangible personal property);  and (ii) properties, funds and trusts received by the corporation on or after September 1, 1956, by private gift, donation, bequest  or transfer, in any manner, under the terms of any applicable trust, gift,  bequest or donation dated or delivered (aa) prior to September 1, 1956, unless  otherwise designated, or (bb) on or after September 1, 1956, if so designated; provided, however, that all property, educational facilities, rights and privileges which are impressed with a public trust for higher education of the  people of the state of New Jersey shall continue to be so impressed; and (b)  [make available (after meeting all expenses of its administration) to the board  of governors] have access to the income from such funds and the use of or income from such  properties, subject to the provisions stated hereinafter in section 18A:65-27;

     [(3)] (2) Shall have sole authority over the investment of funds under its control;

     [(4)] (3) Shall have power to maintain such administrative staff and incur and pay such expenses as it deems reasonably necessary to the effective exercise of  its functions and responsibilities under this chapter or by reason of any other fiduciary or other responsibilities to which it is subject; and

     [(5)] (4) Shall be represented on the membership of the committees of the several  colleges.

(cf: N.J.S.18A:65-26)

 

     16.  N.J.S.18A:65-27 is amended to read as follows:

     18A:65-27.  I.  It is hereby declared to be the public policy of the State of New Jersey that:

     a.    the corporation and the university shall be and continue to be given a high degree of self-government and that the government and conduct of the corporation and the university shall be free of partisanship; and

     b.    resources be and continue to be provided and funds be and continue to be appropriated by the State adequate for the conduct of a State university with high educational standards and to meet the cost of increasing enrollment and the need for proper facilities.

     II.    In consideration of the utilization by the State for the purposes of public higher education of privately donated properties and funds valued as at September 1, 1956 at approximately $50,000,000, and the prospect of future private donations, the State by this chapter agrees with the board of trustees and its successors that:

     a.    if the properties and funds controlled by the [trustees] board of governors shall not be properly applied in accordance with the provisions of subsection d. of section 18A:65-25 for the purpose of higher education and in accordance with the terms of any applicable testamentary, trust, or other special provision; or

     b.    if, without the consent of the board of [trustees] governors,

     (1)   the university is not continued to be designated and maintained as the State University of New Jersey, or

     (2)   the name of the university shall be changed, or

     (3)   a vacancy in the office of the president of the university shall be filled otherwise than by appointment of the board of governors [with the advice and consent of the board of trustees, or

     (4)   the provisions for the essential self-government of the university, viz., the provisions of sections 18A:65-12 to 18A:65-16, inclusive, 18A:65-19, 18A:65-24 to 18A:65-26, inclusive, 18A:65-28, subsection b. of 18A:65-29, 18A:65-30, subsection c. of 18A:65-31, 18A:65-33, 18A:65-6, 18A:65-9 and 18A:65-4, or any of them or of this section 18A:65-27, are amended or altered in any substantial respect or repealed]; or

     c.    if provision shall not be made by the State sufficient to enable the board of [trustees] governors to discharge its trust to apply the trust assets described in [subsection 2 of section] paragraph (1) of N.J.S.18A:65-26 for public higher education through the conduct of a university with high educational standards, the board of [trustees] governors, after careful consideration and on not less than 60 days' prior written notice [to the board of governors and] to the Governor, shall have and may exercise the right to withhold or withdraw the use of the properties and funds above described in [subsection 2 of section] paragraph (1) of N.J.S.18A:65-26, or any part of them, (aa) subject to adjudication by the courts of the State, and (bb) subject to their proper application for the purposes of public higher education and in accordance with the terms of any applicable testamentary, trust or other special provision.

(cf: P.L.1994,c.48, s.182)

 

     17.  N.J.S.18A:65-28 is amended to read as follows:

     18A:65-28.  The [boards] board shall have and exercise the powers, rights and privileges that are incident to [their respective] its responsibilities for the government, conduct and management of the corporation, and the control of its properties and funds,  and of the university, and the powers granted to the corporation or the [boards] board or reasonably implied, may be exercised without recourse or reference to any department or agency of the state, except as otherwise expressly provided by  this chapter or other applicable statutes. The provisions of sections 11 and  13 of chapter 20 of the Laws of 1944 shall not be deemed or construed to be  applicable to the corporation or the university.

(cf: N.J.S.18A:65-28)

 

     18.  N.J.S.18A:65-29 is amended to read as follows:

     18A:65-29.  [a.  The boards may meet in joint session for the purpose of consultation and  discussion, or to act upon any matter which requires joint or concurrent action  of both boards.

     b.    The boards by joint or concurrent action may adopt, and from time to time amend, bylaws, ordinances, statutes, rules, regulations and orders applicable to such matters as require or are subject to the exercise of joint responsibility or action, and each] The board may adopt, and from time to time amend, bylaws, ordinances, statutes, rules, regulations and orders applicable to such matters as require or are subject to the exercise of its responsibility  or its action, subject [, in either case,] to the provisions of this chapter and  other applicable statutes.

(cf: N.J.S.18A:65-29)

 

     19.  N.J.S.18A:65-30 is amended to read as follows:

     [Each] The board shall have the power to appoint and regulate the duties, functions, powers and procedures of committees, standing or special, from its members and such advisory committees or bodies, as it may deem necessary or conducive to the efficient management and operation of the corporation and the university, consistent with this chapter and other applicable statutes.  [The board of governors may appoint trustees who are not governors to membership on its committees, without vote.]

(cf: N.J.S.18A:65-30)

 

     20.  N.J.S.18A:65-31 is amended to read as follows:

     18A:65-31.  a. There shall be a president of the corporation and of the university.

     b.    He shall be responsible to the [boards] board, and shall have such powers as shall be requisite, for the executive management and conduct of the corporation  and the university in all departments, branches and divisions, and for the  execution and enforcement of the bylaws, ordinances, rules, regulations, statutes and orders governing the management, conduct and administration  thereof.  He shall hold office at the pleasure of the board of governors.

     c.    In case of a vacancy in the office, the president shall be elected by the board of governors[, with the advice and consent of the board of trustees].

(cf: N.J.S.18A:65-31)

 

     21.  N.J.S.18A:65-32 is amended to read as follows:

     18A:65-32.  The corporation shall, annually on or before July 31, file in the office of  the secretary of state a report (a) of the [election and] appointment of the, and  the names and residences of the, members of the board of governors [and of the  board of trustees], and (b) of the election and appointment of the executive  officers of the corporation, including the president, provost, vice president  if any, secretary, assistant secretaries, treasurer and assistant treasurers,  and the comptroller and assistant comptroller, at the time in office.

(cf: N.J.S.18A:65-32)

 

     22.  N.J.S.18A:65-33.1 is amended to read as follows:

     18A:65-33.1.  The corporation shall have the care, custody and control of such property as the State now has or shall hereafter acquire at the university, subject to the visitorial powers of the [Chairman of the Commission on] Secretary of Higher Education at the request of the Governor.

(cf: P.L.1994, 48, s.183)

 

     23.  N.J.S.18A:65-34 is amended to read as follows:

     18A:65-34.  The visitorial general powers of supervision and control of the [Chairman of the Commission on] Secretary of Higher Education at the request of the Governor over Rutgers, The State University, are continued and are defined as the powers to visit the university to examine into its manner of conducting its affairs and to enforce an observance of its laws and regulations and the laws of the State.

(cf: P.L.1994, c.48, s.184)

 

     24.  N.J.S.18A:65-35 is amended to read as follows:

     18A:65-35.  The board of governors shall advise, in consultation with the [Commission on] Secretary of Higher Education and the Presidents' Council, to the end that the facilities and services of the university may be so utilized as to increase the efficiency of the public school system and provide higher education for the people of the State, and the board of governors shall make recommendations to the Governor and the Legislature, respecting the needs for the facilities and services, of the university, as an instrumentality of the State for said purposes.

(cf: P.L.1994, c.48, s.185)

 

     25.  The following sections are repealed:

     N.J.S.18A:65-13; and

     N.J.S.18A:65-15.

 

     26.  This act shall take effect immediately.

 

 

STATEMENT

 

     This bill eliminates the board of trustees of Rutgers, The State University and provides that its powers will be exercised by the board of governors of the university.