This report offers background information on the restructuring of higher education in New Jersey's State Department and Board of Higher Education in 1994, focusing primarily on the substance of the proposals, components of the legislation, and the process through which the changes were developed. Political debates and dimensions are not addressed except as they relate to the substantive issues raised by the new structure. During the 1970s and 1980s, New Jersey's higher education structure had features of comparatively decentralized institutional governance and strong State regulatory control. Prior to the Higher Education Restructuring Act of 1994, the autonomy of state colleges was even more limited than that of state universities because of overlapping authority and roles; the state's higher education structure was classified as a strong regulatory coordinating board state. The new structure eliminated the Board of Higher Education and the Department of Education and placed greater governance responsibility and authority on each public college's and university's board of trustees. The Commission on Higher Education was created, composed largely of lay members appointed by the governor and confirmed by the state Senate. An advisory board of all state public and independent college and university presidents was also created. Lessons and observations learned that may be relevant to other states are summarized. An appendix includes a side-by-side comparison of the highlights of New Jersey's previous and new higher education structure. (NAV)