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S 3172

Makes various changes to provisions of "Administrative Procedure Act"; establishes Commission on Efficiency and Regulatory Review in Office of Administrative Law.

2026-2027 Regular Session Introduced by Nick Scutari and 1 co-sponsor

New Jersey creates a Commission on Efficiency and Regulatory Review to assess economic impact of rules and orders, advise on amendments/repeals, and boost public participation.

Introduced in the Senate, Referred to Senate State Government, Wagering, Tourism & Historic Preservation Committee
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Bill Summary · S 3172

Summary of Bill S 3172 (Session 222) – New Jersey

Annotated overview of the bill’s purpose, key provisions, who/what is affected, and timeline considerations.

1) Main purpose and intent

  • Establishes a new Commission on Efficiency and Regulatory Review within the Office of Administrative Law (Department of the Treasury).
  • Mandates regular, independent review of Executive Orders and executive branch rules/regulations to assess economic impact and promote efficiency in implementation and enforcement.
  • Reforms and augments the Administrative Procedure Act (APA) to bolster regulatory transparency, economic analysis, and public participation.
  • Requires the Department of Environmental Protection (DEP) to provide certain information on permit issuances to the Legislature, expanding legislative visibility into permitting activity.

2) Key provisions and changes

A. Commission on Efficiency and Regulatory Review (New section)

  • Location and purpose: Created in the Office of Administrative Law (within the Department of the Treasury).
  • Membership:
    • 1 public member (appointed by the Governor with Senate consent) to serve as chair.
    • 12 ex officio members (various high-level state officials or their designees), including:
    • Director of the Office of Administrative Law
    • Executive Directors of the NJ Business Action Center and the NJ Economic Development Authority
    • Attorney General, State Treasurer
    • Chief Counsel to the Governor, Commissioners of Environmental Protection and Labor and Workforce Development
    • President of the Senate, Speaker of the General Assembly
    • Senate and Assembly Minority Leaders
  • Flexibility: Chair may appoint additional members as needed for expertise/representation.
  • Compensation: Members serve without compensation but may be reimbursed for reasonable expenses.
  • Operations: Must organize within 30 days of enactment; meet at least every six months; a majority constitutes a quorum.
  • Public hearings: At least two public hearings per year in different regions with broad stakeholder invitation.

B. Commission’s duties and authority (New section)

  • Review all proposed and adopted rules/regulations from Executive Branch agencies and all Governor-issued executive orders.
  • Assess economic impacts and weigh costs/burdens on businesses, workers, and local governments versus benefits.
  • Develop recommendations to Governor for amendment, rescission, or repeal of burdensome rules/Orders.
  • Request data/information from departments/agencies as needed.
  • Solicit written and oral public comments; consider stakeholder views in reports.
  • Make recommendations on delegating regulatory programs to licensed professionals or local governments to improve efficiency.
  • Annual written report to Governor and Legislature detailing activities, and recommendations for repeal/amendment or delegation.
  • Require cooperation from all state departments/agencies.
  • Reports from the Commission are advisory; not to create legal rights or alter statutory/regulatory duties, nor to serve as basis for legal claims.

C. DEP reporting requirement (Amendment to existing statute)

  • Amends P.L.1991, c.423 to make the annual DEP permit-application/issuance reporting requirement permanent (previously a three-year cycle).

D. Administrative Procedure Act (APA) amendments (Multiple sections)

  • Socioeconomic impact statements: Expanded to include a State economic impact assessment for proposed rules.
  • Cost-benefit analysis: Require a formal analysis for proposed rules.
  • Best available science: Agencies must use current scientific data/studies; such materials must be public upon rule proposal posting; OAL to certify adequacy of impact statements.
  • Pre-notice requirements: Agencies must file a statement of intent at least 90 days before formal notice; public comment on the proposal is required.
  • Substantive changes to proposed rules: To adopt substantial (non-technical) changes, agencies must show whether changes are a logical outgrowth; otherwise, may choose to follow the standard rule-adoption process.
  • Public extensions and adverse comments: Expedited extensions allowed only if no adverse public comments; otherwise, readoption via standard process.
  • Substantive extension changes: Must utilize the ordinary rule-making process (not an expedited process).
  • Publication window for proposals: Expanded or clarified timelines and related notice requirements.
  • Public participation: Strong emphasis on public hearings, comment periods, and agency responsiveness to stakeholder submissions.
  • Related timelines: Various timeframes for notices, comment periods, and hearings standardized across sections.

E. Effective dates

  • Sections 1–3 take immediate effect.
  • Sections 4–7 take effect one year after enactment.

3) Who or what would be affected

  • Executive Branch agencies and governing bodies proposing or adopting rules/regulations.
  • The Governor’s office, through review of Executive Orders.
  • Businesses, workers, local governments, and other stakeholders affected by regulatory actions (economic/burdens analysis aims to reflect their impacts).
  • DEP permit applicants and issuances (via expanded legislative visibility).
  • The Office of Administrative Law and related regulatory bodies involved in rulemaking.

4) Procedural and timeline aspects

  • Establishment and organization: Commission to be formed and begin within 30 days of enactment; meetings at least semi-annually with mandated public hearings annually.
  • Reporting cadence: Commission to deliver annual advisory reports; DEP permit reporting becomes permanent.
  • APA reform timeline: New or revised rulemaking analyses and public processes are to be applied to proposed rules, with explicit notice and public-comment requirements. Immediate effect for sections 1–3; sections 4–7 take effect 1 year after enactment.

Overall, S 3172 introduces a formal economic-regulatory review mechanism and strengthens the analytical framework and public-process safeguards surrounding New Jersey’s Administrative Procedure Act, while enhancing transparency around permits and executive actions.

Compiled from official sources — confirm details with the bill’s official record.

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