Bill Text: NJ A3974 | 2024-2025 | Regular Session | Amended

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Bill Title: Prohibits use of deceptive marketing practices by substance use disorder treatment providers.

Spectrum: Partisan Bill (Democrat 13-0)

Status: (Engrossed) 2024-09-30 - Received in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee [A3974 Detail]

Download: New_Jersey-2024-A3974-Amended.html

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[First Reprint]

ASSEMBLY, No. 3974

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED FEBRUARY 27, 2024

 

 

Sponsored by:

Assemblyman  ANTHONY S. VERRELLI

District 15 (Hunterdon and Mercer)

Assemblyman  CODY D. MILLER

District 4 (Atlantic, Camden and Gloucester)

Assemblywoman  ROSAURA "ROSY" BAGOLIE

District 27 (Essex and Passaic)

 

Co-Sponsored by:

Assemblyman Conaway, Assemblywomen McCoy, Hall and Reynolds-Jackson

 

 

 

 

SYNOPSIS

     Prohibits use of deceptive marketing practices by substance use disorder treatment providers.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Appropriations Committee on June 24, 2024, with amendments.

  

An Act concerning substance use treatment providers and supplementing Title 56 of the Revised Statutes.

 

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

 

     1.  As used in this act:

     ¹"Affliation" means a relationship where one party, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, the other party.¹

     "Recovery residence" means housing with a home-like atmosphere, which is available in either a professionally-managed facility or a peer-managed facility, and which provides a sober living environment and alcohol- and drug-free living accommodations to individuals with substance use disorders, or to individuals with co-occurring mental health and substance use disorders, but which does not provide clinical treatment services for mental health or substance use disorders. "Recovery residence" includes, but is not limited to, a facility that is commonly referred to as a sober living home.

     "Treatment provider" means a facility licensed in accordance with section 8 of P.L.1975, c.305 (C.26:2B-14) for substance use disorder treatment or services, a substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.), or a recovery residence located within the State.

 

     2.  Any marketing or advertising materials published or disseminated by a treatment provider shall provide accurate and complete information, in plain language, and shall include the following:

     a.  information on the types and methods of services provided;

     b.  information about the location in which services are provided; and

     c.  the treatment provider's name and brand name.

 

     3.  a.  It shall be an unlawful practice, pursuant to P.L.1960, c.39 (C.56:8-1 et seq.), for a treatment provider to:

     (1)  make a false or misleading statement about the treatment provider's status as an in-network or out-of-network provider;

     (2)  provide, or direct any other person or entity to provide, false or misleading information about the identity of, or contact information for, any treatment provider;

     (3)  include false or misleading information about the Internet address of any treatment provider's website, or to surreptitiously direct or redirect a person to another website;

     (4)  suggest or imply that ¹[a relationship] an affliation¹ with another treatment provider exists, unless the other treatment provider has provided express, written consent to indicate that ¹[relationship] affliation¹;

     (5)  make a false or misleading statement about the substance use disorder treatment services the treatment provider provides; or

     (6)  make a false or misleading statement about the geographic location of the treatment provider or the geographic location in which the treatment provider provides substance use disorder treatment services.

     b.  Any treatment provider who violates the provisions of subsection a. of this section shall be liable to a civil penalty of not more than $20,000 for each violation.  The civil penalty shall be collected pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.), in a summary proceeding before the municipal court having jurisdiction.

     c.  Any person who suffers any injury or damages, including, but not limited to, paying for services that were performed in violation of this act, as a result of the use or employment by a treatment provider of any method, act, or practice declared unlawful under this act may bring an action or assert a counterclaim therefor in any court of competent jurisdiction.  In any action under this subsection, the court shall, in addition to any appropriate legal or equitable relief, award threefold the damages sustained by any person in interest.  In all actions under this section, the court shall also award reasonable attorney's fees, filing fees, and reasonable costs of suit.

     d.  The Office of Licensing in the Department of Health may investigate alleged violations of this act.  Upon finding a violation, the division may suspend or revoke the treatment provider's license or certification, if applicable, or may impose a civil penalty against the treatment provider. If the department imposes a civil penalty, the civil penalty shall be not more than $20,000 for each violation.

 

     4.  This act shall take effect immediately.