A 5350 — Authorizes dual employment by certain employees of Rutgers University and affiliated contracting entities.

A5350 1R [First Reprint] ASSEMBLY, No.

  CURRENT VERSION OF TEXT      As introduced.reported by the Assembly Budget Committee on June 28, 2026, with amendments.

            2.   2.   a.         Any employee of Rutgers, The State University 1,1 who 1is a managerial executive as defined in section 3 of P.L.1941, c.100 (C.34:13A-3) and1 has oversight 1or supervisory1 or managerial responsibility for,for 1[, or involvement in supervising,supervising,]1 medical education, research, or clinical care programs or divisions in connection with an affiliation agreement that has been entered into between Rutgers, The State University and a contracting entityentity1,1 may be employed by, and receive compensation from, both Rutgers, The State University and the contracting entity.entity.        b.    Any compensation or other benefits connected to any employment permitted pursuant to subsection a.

        b.    Any compensation or other benefits connected to any employment permitted pursuant to subsection a.

of this section shall not be deemed in violation of paragraphs1[paragraphs (1) andand] paragraph1 (5) of subsection (e) of section 12 of P.L.1971, c.182 (C.52:13D-23) but1[but shall otherwise be subject to the provisions of subsection (e) of section 12 of P.L.1971, c.182 (C.52:13D-23). (C.52:13D-23)]  or     any 3.   provision Thisof actthe shallcode takeof effectethics immediately.adopted pursuant thereto1.

STATEMENT        This13.  billa.  authorizesNothing dualin employmentthis byact certainshall employeesbe ofconstrued Rutgers,to Themodify Stateor Universitycontravene and affiliated contracting entities.  Under the bill,rights if Rutgers University enters into an affiliation agreement with a contracting entity for certain enumerated purposes related to improved health care and associatedobligations research in the State, then any employee of Rutgersemployers University who has oversight or managerialemployees responsibilityunder for, or involvement in supervising, certain areas covered in the affiliation agreement may be an employee of both Rutgers University and the contracting entity.       The “New Jersey ConflictsEmployer-Employee ofRelations InterestAct,” Law”P.L.1941, wasc.100 enacted(C.34:13A-1 withet theseq.). purpose of ensuring public employees hold the respect and confidence of the public by avoiding conduct that is in violation of the public trust or which creates a justifiable impression among the public that this trust is being violated.

 RutgersThis Universityact employeesshall arebe generallyconstrued subjectin toaccordance thewith provisions of the conflictsrequirements of interestsection law. 139      Under the conflicts of interestP.L.2012, law,c.45 among(C.18A:64M-40). other requirements, State employees generally cannot:

1)         haveb.    anyNothing interest,in financialthis oract otherwise,shall directbe orconstrued indirect,to orexempt engage in any businesssubcontracting oragreement transactionfrom orthe professionalrequirements activity,of thatP.L.2021, isc.104 in(C.34:13A-50 substantialet conflictseq.).1 with  the     proper1[3.] discharge4.1     ofThis theact employee’sshall dutiestake ineffect theimmediately. public interest;

and 2)     receive compensation from any source other than the State of New Jersey, and State employees should not undertake any employment or service, whether compensated or not, that might reasonably be expected to impair the employee’s objectivity and independence of judgment in the exercise of official duties.       This bill permits an employee to receive compensation from both Rutgers University and the contracting entity with which the university enters into an affiliation agreement and clarifies that the dual employment permitted under the bill is not subject to these provisions of the conflicts of interest law.

     It is the sponsor’s intent that this bill:

harmonizes the State’s conflict of interest framework with the realities of modern academic health systems;

promotes the continued success of Rutgers University’s affiliations with nonprofit health care entities;

and advances the public purposes of improving health care access, strengthening medical education and research, and enhancing the quality of care delivered to residents of the State.

     To accomplish this goal, the sponsor recognizes that dual employment arrangements, such as those in which Rutgers University faculty and administrators perform overlapping academic, clinical, and research functions as part of a unified system of care and instruction, are not in violation of the conflicts of interest law.