S 4515 — Authorizes dual employment by certain employees of Rutgers University and affiliated contracting entities.*

S4515 1R [First Reprint] SENATE, No.

Senator  RAJ MUKHERJI District 32 (Hudson)  Assemblyman   STERLEY  S.   SYNOPSIS      Authorizes dual employment by certain employees of Rutgers University and affiliated contracting entities;

permitsSTANLEY certainDistrict dual18 board(Middlesex) members  to  participate  in  votesSYNOPSIS concerning      Authorizes dual employment by certain health-relatedemployees affiliationof agreements.Rutgers University and affiliated contracting entities.

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

            1.   1.   As used in this act:

          “Affiliation agreement” means a long-term agreement that establishes a joint governance structure between a nonprofit corporation established in the State pursuant to the "New Jersey Nonprofit Corporation Act," N.J.S.15A:1-1 et seq., and Rutgers, The State University with the purposes of:

          “Contracting entity” means a nonprofit corporation established in the State pursuant to the "New Jersey Nonprofit Corporation Act," N.J.S.15A:1-1 et seq., and any affiliates and subsidiaries of the nonprofit corporation in the State, that enters into an affiliation agreement with Rutgers, The State University;

          “Special1[“Special State officer or employee” means the same as that term is defined in section 2 of P.L.1971, c.182 (C.52:13D-13).(C.52:13D-13).]1         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 1[, or involvement in supervising,]1 medical education, research, or clinical care programs or divisions in connection with an affiliation agreement that has been entered 1into1 between Rutgers, The State University and a contracting entity 1,1 may be employed by, and receive compensation from, both Rutgers, The State University and the contracting entity.        b.   Any compensation or other benefits connected to any employment permitted pursuant to subsection a.

       2.    a.         Any employee of Rutgers, The State University who has oversight or managerial responsibility for, or involvement in supervising, medical education, research, or clinical care programs or divisions in connection with an affiliation agreement that has been entered between Rutgers, The State University and a contracting entity may be employed by, and receive compensation from, both Rutgers, The State University and the contracting entity.

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

       3.   1[3. Notwithstanding any law, rule, regulation, determination of a State agency or authority, executive directive, or policy to the contrary, the provisions of the "New Jersey Conflicts of Interest Law," P.L.1971, c.182 (C.52:13D-12 et seq.), which are applicable to a special State officer or employee, and the provisions of paragraphs through 4 of Executive Order No.

14Notwithstanding ofany 2006,law, shallrule, notregulation, bedetermination construedof to prohibit a member of the board of governors of Rutgers, The State Universityagency whoor isauthority, aexecutive memberdirective, ofor apolicy governingto boardthe ofcontrary, a contracting entity from participating in any matter before the boardprovisions of governors of Rutgers, The State University that is necessary to implement the affiliation"New agreement. Jersey AConflicts determination of whetherInterest aLaw," matterP.L.1971, isc.182 necessary(C.52:13D-12 toet implementseq.), thewhich affiliationare agreementapplicable shallto bea madespecial byState anyofficer individual designated, or otherwiseemployee, identifiedand in,the anyprovisions applicableof conflictparagraphs of1 interestthrough policies4 of Rutgers,Executive TheOrder StateNo. University.

14 of 2006, shall not be construed to prohibit a member of the board of governors of Rutgers, The State University who is a member of a governing board of a contracting entity from participating in any matter before the board of governors of Rutgers, The State University that is necessary to implement the affiliation agreement.  A determination of whether a matter is necessary to implement the affiliation agreement shall be made by any individual designated, or otherwise identified in, any applicable conflict of interest policies of Rutgers, The State University.]1             4.   13.  Thisa.  Nothing in this act shall takebe effectconstrued immediately.to modify or contravene the rights and obligations of employers or employees under the “New Jersey Employer-Employee Relations Act,” P.L.1941, c.100 (C.34:13A-1 et seq.).

    STATEMENT        This billact authorizesshall dualbe employmentconstrued by certain employees of Rutgers, The State University and affiliated contracting entities.  It also permits certain dual board members to participate in votesaccordance concerning certain health-related affiliation agreements.       Under the bill, if Rutgers University enters into an affiliation agreement with a contracting entity for certain enumerated purposes related to improved health care and associated research in the State,requirements then any employee of Rutgerssection University139 tasked with oversight or managerial responsibility for, or involvement in supervising, certain areas covered in the affiliation agreement may be an employee of bothP.L.2012, Rutgersc.45 University(C.18A:64M-40). and the contracting entity.       The “New Jersey Conflicts of Interest Law” was enacted with the 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.

 Rutgers      Universityb.   employeesNothing arein generallythis subjectact toshall thebe provisionsconstrued ofto theexempt conflictsany ofsubcontracting interestagreement law.       Under the conflicts of interest law, among other requirements, State employees generally cannot receive compensation from any source other than the Staterequirements of NewP.L.2021, Jersey,c.104 and(C.34:13A-50 Stateet employeesseq.).1 should  not     undertake4.    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 billact permitsshall antake employeeeffect toimmediately. 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.

     Additionally, the bill clarifies that the provisions of the conflicts of interest law, which apply to a special State officer or employee, will not be construed to prohibit a member of the board of governors of Rutgers University who is a member of a governing board of a contracting entity from participating in any matter before the board of governors that is necessary to implement the affiliation agreement, as determined by Rutgers University policies.

       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.

       Moreover, current law restricts governing board members of State institutions of higher education from being employed by, or deriving or receiving any compensation from, entities that do business with the institution that the board member governs.

The sponsor recognizes that in the context of affiliation agreements covered under the provisions of the bill, these restrictions impede the parties’ ability to engage in joint governance structures that foster meaningful collaboration towards achieving common, public interest goals.  As a result, the sponsor intends to ensure that the board of governors of Rutgers University retains the expertise and participation necessary to oversee complex, integrated operations, while maintaining appropriate institutional safeguards.