A5350

An Act concerning Rutgers, The State University, and supplementing P.L.2012, c.45 (C.18A:64M-1 et al.).

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

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: advancing the provisions of P.L.2012, c.45 (C.18A:64M-1 et al.); creating an integrated academic health system that is nationally recognized for its education, research, and clinical care; and improving access to healthcare in the State.

“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; or any jointly formed, managed, or affiliated entity or enterprise that may be formed pursuant to an affiliation agreement, including any affiliates or subsidiaries established pursuant to the affiliation agreement.

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 into 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. of this section shall not be subject to the provisions of section 13 of P.L.1971, c.182 (C.52:13D-24) or any provision of the code of ethics adopted pursuant to section 12 of P.L.1971, c.182 (C.52:13D-23). The employment permitted pursuant to subsection a. of this section shall not be deemed in violation of paragraphs (1) and (5) of subsection (e) of section 12 of P.L.1971, c.182 (C.52:13D-23) but shall otherwise be subject to the provisions of subsection (e) of section 12 of P.L.1971, c.182 (C.52:13D-23).

3. This act shall take effect immediately.

STATEMENT

This bill authorizes dual employment by certain employees of Rutgers, The State University and affiliated contracting entities. 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, then any employee of Rutgers University who has oversight or managerial responsibility 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 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 University employees are generally subject to the provisions of the conflicts of interest law.

Under the conflicts of interest law, among other requirements, State employees generally cannot:

1) have any interest, financial or otherwise, direct or indirect, or engage in any business or transaction or professional activity, that is in substantial conflict with the proper discharge of the employee’s duties in the 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.