ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY COMMITTEE SUBSTITUTE FOR

ASSEMBLY, No. 3852

STATE OF NEW JERSEY

DATED:  DECEMBER 18, 2025

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3852 ACS.

      As reported, this substitute bill establishes a Psilocybin Behavioral Health Access and Therapy Pilot Program (pilot program), and appropriates $6 million to fulfill the bill’s purposes.

      Under the bill, the pilot program is to be overseen by the Department of Health (department) and the Psychedelic Therapy and Research Advisory Board (board), which is to comprise of 11 members as provided for in the bill. The responsibilities of the board are to include:  (1) researching and gathering available medical, psychological, and scientific studies, social scientific research, and other information relating to the safety of psilocybin and any other psychedelic substances and their efficacy in ameliorating behavioral health conditions; (2) evaluating outcomes of the pilot program and any research, pilot programs, and access programs related to psilocybin or other psychedelic substances under the laws of other states; and (3) making recommendations, in collaboration with the department, to the Legislature that consider efficacy, safety, and affordability for the development and implementation of a comprehensive plan to provide therapeutic access to psilocybin.

     The bill provides that the department is not to establish, implement, or enforce a requirement, specification, or guideline under the pilot program that conflicts with protocols and guidelines from the United States Food and Drug Administration related to clinical trials for psychedelic substances. 

     No later than 180 days after the substituted 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 develop a set of criteria by which applying hospitals are to be evaluated for participation in the pilot program and perform selections no later than 60 days after the release of the request for proposals.  The department is to select one qualified hospital from each of the northern, central, and southern regions of the State, provided that an applicant from each of these regions meets the department’s criteria.  The department is to require each participating hospital to collect and report data and information related to the pilot program and patient outcomes. 

     Following the completion of year two of the pilot program, the department and board are to prepare and submit reports to the Governor and Legislature with findings and recommendations, as provided in the bill.

FISCAL IMPACT:

      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.