The New Jersey Regulatory Modernization and Red Tape Reduction Act establishes the New Jersey Regulatory Modernization Commission, which aims to assess and reform existing regulations that may hinder economic development and public confidence in government. The commission will be allocated within the Department of Labor and Workforce Development and will consist of 11 voting members, including public members appointed by the Governor, Senate President, and Speaker of the General Assembly, as well as key state officials. The commission is tasked with reviewing administrative rules, soliciting input from businesses and the public, and publishing an annual report detailing its findings and recommendations, including the economic impact of proposed reforms.

The commission will operate in an advisory capacity, meaning it cannot enact or repeal regulations but can recommend changes to state departments and agencies, which must respond within 90 days. Additionally, the commission will develop a digital Red Tape Reduction Portal for public submissions of regulatory concerns. The bill also appropriates $250,000 from the General Fund to support the commission's administrative operations. All meetings will adhere to the Open Public Meetings Act, and the commission's reports will be made publicly accessible online.