Bill Text: NJ A3979 | 2024-2025 | Regular Session | Amended

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Bill Title: Requires certain providers of substance or alcohol use disorder treatment, services, or supports to be assessed for conflicts of interest prior to receiving State funds, licensure, or certification.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced) 2024-05-13 - Reported out of Asm. Comm. with Amendments, and Referred to Assembly Appropriations Committee [A3979 Detail]

Download: New_Jersey-2024-A3979-Amended.html

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[First Reprint]

ASSEMBLY, No. 3979

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED FERUARY 27, 2024

 

 

Sponsored by:

Assemblywoman  MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman  JESSICA RAMIREZ

District 32 (Hudson)

Assemblywoman  CLEOPATRA G. TUCKER

District 28 (Essex and Union)

 

Co-Sponsored by:

Assemblyman Verrelli and Assemblywoman Reynolds-Jackson

 

 

 

 

SYNOPSIS

     Requires certain providers of substance or alcohol use disorder treatment, services, or supports to be assessed for conflicts of interest prior to receiving State funds, licensure, or certification.

 

CURRENT VERSION OF TEXT

     As reported by the Assembly Oversight, Reform and Federal Relations Committee on May 13, 2024, with amendments.

  

An Act concerning conflicts of interest and substance and alcohol use disorder treatment, services, and supports and supplementing Title 30 of the Revised Statues.

 

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

 

      1.   a.  A reviewing entity shall be required to assess a provider for conflicts of interest ¹[the] that¹ could impede the provider's ability to deliver treatment, services, or supports for substance or alcohol use disorder prior to the distribution of State funds or the approval of any applicable licensures or certifications.  A reviewing entity shall not be required to administer a conflict of interest assessment on the same provider more frequently than once every 365 days. 

      b.   A conflict of interest assessment shall include, at a minimum, a review of the following information submitted by the provider to the reviewing entity: 

      (1)  a financial statement itemizing annual revenues, expenditures, and profits;

      (2) a list of all board members, including each board member's profession and employer;

      (3)  a list of all stakeholders, investors, owners, or any other individuals or entities that hold a financial interest in the provider;

      (4)  a list of all stakeholders, investors, owners, or any other individuals or entities that hold a financial interest in the provider and that have a financial interest in a secondary entity and the name of the secondary entity; 

      (5)  a list of all staff members, indicating each member's title and job duties; and

      (6)  a list of any staff members who hold outside employment, the name of the staff member's outside employer, and the staff member's responsibilities under that outside position.

      c.   If, upon review of the information submitted by the provider under subsection b. of this section, the reviewing entity determines that a conflict of interest exists that could impede the provider's ability to deliver treatment, services, or supports for substance or alcohol use disorder, the reviewing entity shall notify the provider, in writing, of the determination, along with: (1) a description of the conflict of interest and how the conflict can be remedied; and (2) a statement that the provider will be ineligible to receive State funds, or licensure or certification approval, from the reviewing entity, and that any application for State funds submitted to the reviewing entity will be held, until the provider remedies the conflict of interest.

      d.   Upon receipt of documentation from the provider that the conflict of interest has been remedied, the reviewing entity shall immediately:

      (1)  distribute to the provider any State funds that the provider is otherwise eligible to receive;

      (2)  withdraw any hold placed on an application for State funds, as submitted by the provider, and process that application according to the existing eligibility guidelines for that application; and

      (3)  provide any certification or licensure to the provider that the provider is otherwise eligible to receive.  

      e.   ¹After the provider has remedied the identified conflict of interest, the reviewing entity shall reassess the provider for conflicts of interest twice in the next calendar year, once in the second calendar year, and once in the third calendar year.

      f.¹  As used in this section:

      "Conflict of interest" mean any circumstance that creates a risk that the judgment or action by any individual or entity having a financial interest in, employed by, or otherwise affiliated with a provider will be unduly influenced by a secondary, outside interest.

      "Provider" means a health care professional, facility, or program licensed or certified in the State, or applying for licensure or certification in the State, to provide substance use disorder or alcohol use disorder treatment, services, or supports.

     "Reviewing entity" means a department, agency, bureau, board, commission, authority, or other entity of the State, or of any county or municipality, that: (1) provides State funds via contracts, grants, direct State aide, or any other means to a provider; or (2) licenses or certifies any provider that accepts client referrals from a State-funded entity.

 

     2.    This act shall take effect on the 180th day following enactment.