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Bill > S3951


NJ S3951

NJ S3951
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.


summary

Introduced
12/12/2024
In Committee
12/12/2024
Crossed Over
Passed
Dead
01/12/2026

Introduced Session

2024-2025 Regular Session

Bill Summary

This bill requires any department, agency, bureau, board, commission, authority, or other entity of the State, or of any county or municipality, that provides State funds to providers, or licenses or certifies any provider that accepts client referrals from a State-funded entity, to assess the provider for conflicts of interest the 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. Under the bill, "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. Moreover, "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. A conflict of interest assessment under the bill is required to 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. A reviewing entity is not required to administer a conflict of interest assessment on the same provider more frequently than once every 365 days. If, upon review of the information submitted by the provider, the reviewing entity determines that a conflict of interest exists, 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. 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.

AI Summary

This bill requires state, county, or municipal entities that provide funding or licensing to substance use disorder treatment providers to conduct comprehensive conflict of interest assessments before distributing funds or granting certifications. The assessment must review detailed financial and organizational information from providers, including annual financial statements, board member details, stakeholder lists, staff information, and outside employment data. A "conflict of interest" is defined as any circumstance where a provider's judgment might be inappropriately influenced by secondary interests. If a reviewing entity determines a conflict exists, they must notify the provider in writing, explaining the conflict and potential remediation, and will withhold funds and certifications until the issue is resolved. Once the provider demonstrates the conflict has been addressed, the reviewing entity must immediately release held funds, process pending applications, and provide necessary certifications. The bill applies to healthcare professionals, facilities, or programs providing substance or alcohol use disorder treatment, and assessments can only be conducted once per 365-day period. The legislation will take effect 180 days after enactment, giving providers and reviewing entities time to prepare for the new requirements.

Committee Categories

Health and Social Services

Sponsors (1)

Last Action

Introduced in the Senate, Referred to Senate Health, Human Services and Senior Citizens Committee (on 12/12/2024)

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