LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3852

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: DECEMBER 18, 2025

 

 

SUMMARY

 

Synopsis:

Establishes Psilocybin Behavioral Health Access and Therapy Pilot Program; appropriates $6 million.

Type of Impact:

Time-limited State expenditure increase and potential State revenue increase.

Agencies Affected:

Department of Health.

 

 

Office of Legislative Services Estimate

Fiscal Impact

      Time-Limited Duration of the Pilot Program

 

State Expenditure Increase

Up to $6.6 million

 

Potential State Revenue Increase

Indeterminate

 

 

·       The Office of Legislative Services (OLS) estimates that this bill will result in a State expenditure increase of up to $6.6 million, of which $6 million represents the cost to allocate $2 million to each of the up to three eligible hospitals selected to participate in the Psilocybin Behavioral Health Access and Therapy Pilot Program and $570,000 represents the estimated salary and benefits costs incurred by the Department of Health to administer the pilot program over the duration of the bill’s effective period. 

·       To the extent that members of the Psychedelic Therapy and Research Advisory Board receive reimbursement from the Department of Health for necessary and reasonable expenses or that the department incurs expenses to provide administrative support to the board, this cost estimate may increase modestly.

·       While the bill authorizes the department to deposit any available non-State funds into the Psychedelic Therapy and Research Fund, as established under the bill, any revenue generated from these sources is unpredictable and, therefore, indeterminate.

 

BILL DESCRIPTION

 

      This bill establishes the Psilocybin Behavioral Health Access and Therapy Pilot Program.  The pilot program is to be overseen by the Department of Health and the 11-member Psychedelic Therapy and Research Advisory Board established under the bill.  Boards members are to serve without compensation but may be reimbursed for reasonable expenses incurred in the performance of their official duties.  The department is required to provide administrative support to the board to carry out its work.

      No later than 180 days after the bill’s effective date, the department is to establish and implement a process and issue a request for proposals by which hospitals may submit applications for participation in the pilot program.  The department is to select one qualified hospital from the northern, central, and southern regions of the State, provided that an applicant from each of these regions meets the department’s criteria.  The pilot program is to commence upon the selection of the eligible hospitals by the department.

      The bill appropriates $6.0 million from the General Fund to the Psychedelic Therapy and Research Fund, as established under the bill, and allocates $2.0 million to each of the up to three eligible hospitals selected for the pilot program.  The department is also authorized to seek and apply for any available federal funds, as well as solicit and accept financial resources from private entities, to be deposited into the fund and used for the purposes of the pilot program.

     Following the completion of year two of the pilot program, the department and the board are to prepare and submit reports to the Governor and Legislature with findings and recommendations, as provided in the bill.  The bill takes effect immediately and expires upon the submission of this report.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS estimates that this bill will result in a State expenditure increase of up to $6.6 million.  Of this amount, $6 million reflects the amount incurred by the State to implement the Psilocybin Behavioral Health Access and Therapy Pilot Program, as established in the bill.  The amount expended will be contingent on the number of qualified hospitals selected by the Department of Health to participate in the program, which the bill limits to three.  The bill requires that each hospital is to receive $2 million of the $6 million General Fund appropriation made under the bill to implement the pilot program.

      The OLS estimates that the department may also incur approximately $570,000 in salary and benefits expenses under the bill in compensating one contract administrator to administer the pilot program over the duration of the bill’s effective period, estimated as approximately three years.  Responsibilities of the contract administrator would include establishing and implementing an application process for the pilot program; collaborating with the board to set the criteria for the pilot program; seeking and applying for any available non-State funds for the pilot program; gathering and evaluating data from participating hospitals in the pilot program; and preparing a report, as required under the bill. To the extent that members of the board receive reimbursement from the department for necessary and reasonable expenses or that the department incurs expenses to provide administrative support to the board, as permitted under the bill, this cost estimate may increase modestly. 

      The OLS notes that the bill authorizes the department to deposit any available non-State funds into the Psychedelic Therapy and Research Fund, as established under the bill, to be used for the purposes of the pilot program.  Any revenue generated from these sources is unpredictable and, therefore, indeterminate.

 

 

Section:

Human Services

Analyst:

Sarah M. Schmidt

Principal Research Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).