The Assembly Oversight, Reform and Federal Relations Commission heard testimony on A1505 (Freiman)/S729 (Burzichelli), which proposes several amendments to the Administrative Procedure Act (APA). The New Jersey State Bar Association participated in recommendations for amendments as part of the Red Tape Review Committee under Gov. Chris Christie.
The committee’s chair, Assemblyman Alexander Schnall, kicked off the hearing by highlighting stakeholder concerns about the length and predictability of rulemaking and the accessibility of the public comment process. He also raised concerns about the clarity of guidance.
“This hearing is an opportunity for a careful and constructive look at these concerns,” Schnall said. “Our goal is not simply to make the process faster or slower, more centralized or decentralized. Our goal is to ensure that New Jersey’s regulatory framework remains transparent, accountable and effective while allowing agencies to respond to emerging issues and implement the laws that the Legislature enacts.”
Former New Jersey State Bar Association Administrative Law Section Chair Paul Josephson testified first in support of the bill and offering for consideration a more robust review of the Act to increase transparency and efficiency.
“It is evident that the sponsors of A1505 intend to increase transparency and public input into state rulemaking processes, and that is a good thing,” Josephson said.
Among the proposed changes in the bill are:
- A requirement that agencies post online, for each proposed rulemaking, all public comments received and the data sets/information/resources used to formulate the proposal
- Extend the minimum notice and public comment period for most rule proposals from 30 to 60 days, with agencies accepting comments beginning upon Register publication
- Require an additional 30-day comment extension when sufficient public interest is shown within 60 days of proposal publication and deeming requests by at least 50 commenters sufficient public interest for an extension or a public hearing
- Mandating public hearings upon request by specified governmental bodies/legislative committees, upon sufficient public interest, or when a proposal is estimated to cause a substantive increase in annual expenditures
- Require proposal materials to include dollar estimates of annual expenditure impacts on the state, municipalities, businesses, and residents, and include consideration of alternatives with a justification for the chosen approach
The bill also contemplates a fee shifting component providing for the payment of attorney’s fees in certain circumstances when the head of an agency rejects or modifies the recommended report and decision of an administrative law judge and the decision is overturned by a court.
Other people testifying in support of the bill include the New Jersey Business and Industry Association and NAIOP Commercial Real Estate Development Association.
Schnall pointed out that the hearing was the first in a series of steps to review the act. Josephson did not testify on behalf of the NJSBA, which is still reviewing the bill.