Senate President Nicholas Scutari is fast-tracking a sweeping bill that would strip key investigative powers from the Office of the State Comptroller and transfer them to the State Commission of Investigation, prompting sharp backlash from good-government advocates and several top officials.

Supporters say the measure is all about efficiency and would consolidate overlapping responsibilities among state watchdogs. But critics argue it would weaken oversight, blunt corruption probes, and defang acting state Comptroller Kevin Walsh, whose investigations have scrutinized politically connected figures, including some of New Jersey’s most powerful Democrats.

A Senate committee is scheduled to take up the bill on Monday.

Scutari, a Democrat from Union County, introduced the legislation Nov. 25, right before Thanksgiving, during the lame-duck session, and moved it quickly toward a hearing. The committee reviewing the bill is headed by Sen. James Beach of Camden County, an ally of George Norcross who has refused to confirm Walsh during his tenure of more than five years.

The proposal would reduce the comptroller’s investigative authority while expanding the SCI’s reach, giving the agency new powers to seek wiretaps and oversee state and county prosecutors.

Walsh responded Tuesday night on X, writing, “Just in: NJ ‘transparency’ at its worst. Sen. Scutari sneaks in a bill before Thanksgiving to kill OSC investigations. A vote for this bill is a vote for corruption.”

Under the bill, the comptroller would retain authority to investigate public contracting and Medicaid spending, but with diminished power. The office would keep subpoena power only in Medicaid cases.

The bill also removes term limits for SCI commissioners and increases their annual salaries from $35,000 to $75,000. It shifts more control of the agency to the Legislature by allowing the Senate president and Assembly speaker to jointly name the commission chair — a role currently appointed by the governor.

Scutari said earlier this year that the state may have “too many watchdogs,” citing overlapping work by the comptroller, SCI, Election Law Enforcement Commission, attorney general’s office, and county prosecutors. He has said multiple oversight entities “investigate misconduct,” “promote efficiency” and “identify cost savings,” leading to potential duplication.

The comptroller is appointed by the governor to a six-year term and is responsible for auditing government programs, contracts, and procurements. About half the office’s staff focuses on Medicaid fraud. Walsh, appointed by Gov. Phil Murphy in 2020, has led several high-profile investigations, including a report on Union County that drew criticism from powerful lawmakers. One of the officials named in that report was Scutari’s former chief of staff.

Walsh said in a virtual news conference last week that the bill is politically motivated. “They are coming for the state comptroller’s powers because we have shown how political power and corruption go together in New Jersey,” Walsh said. “And that makes Sen. Scutari and some others in the Legislature uncomfortable.”

Open-government advocates have condemned the bill and criticized its timing, introduced two days before Thanksgiving, when public participation typically dips.

“The fact that this is being put up on the agenda at a time when no one’s paying attention just underscores that this is an attempt to silence the public,” said Dena Mottola Jaborska, executive director of New Jersey Citizen Action.

Attorney General Matthew Platkin said the bill would undermine law enforcement and give politically powerful individuals broad powers to intimidate investigators.

“This legislation that would weaken oversight and accountability is the wrong direction for New Jersey,” U.S. Sen. Andy Kim, D-N.J., wrote on social media.

Gov.-elect Mikie Sherrill has avoided directly endorsing or opposing Scutari’s plan. In a Nov. 26 statement, she said she opposes efforts that “weaken essential accountability and oversight,” but added she would not weigh in on active legislation as it evolves.

“I know from both my service in the Navy and as a federal prosecutor that strong accountability and oversight are essential to ensuring good governance and public trust,” Sherrill said. “The people of New Jersey deserve nothing less — and that’s what my administration will deliver.”

How the bill weakens transparency and oversight

It shrinks an independent watchdog’s investigative role.

The Office of the State Comptroller keeps Medicaid fraud, procurement oversight and audits — but loses other investigative functions.

Those investigative powers move to the SCI, which is not primarily a fiscal or oversight office and is structurally more political (direct gubernatorial and legislative appointees, salary hikes for commissioners, all staff at-will, and “confidential employees”.

It makes referrals and follow-through softer, not stronger.

The bill adds more discretion and an internal process critics argue creates room to sit on sensitive cases or slow-walk politically inconvenient referrals.

It moves power into a more political structure.

SCI commissioners would be appointed directly by the governor, Senate president and Assembly speaker, and their salaries would jump from $35,000 to $75,000, making the posts much more attractive political prizes.

The new “state inspector general” is not independently confirmed as a separate office. The SCI executive director is hired and fired at will by the commission.

That is very different from an independent inspector general model with more insulation from political pressure.

It centralizes investigative power while weakening checks

In practice, you are collapsing one line of oversight (OSC investigations) into a commission that already has broad powers but would have legislative control.