LEGISLATIVE FISCAL ESTIMATE

ASSEMBLY, No. 3973

STATE OF NEW JERSEY

221st LEGISLATURE

 

DATED: JUNE 25, 2024

 

 

SUMMARY

 

Synopsis:

Revises laws concerning patient referrals to substance use disorder treatment facilities.

Type of Impact:

Annual State expenditure and revenue increases.

Agencies Affected:

Department of Law and Public Safety; the Judiciary; Office of the Public Defender

 

 

Office of Legislative Services Estimate

Annual Fiscal Impact

 

 

State Expenditure Increase

Indeterminate

 

State Revenue Increase

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) finds that the bill’s expansion of current law concerning patient referrals to substance use disorder treatment facilities to include health care providers, health care facilities, non-profit organizations, and recovery residences would increase the workload of the Department of Law and Public Safety, the Judiciary, and the Office of Public Defender to the extent the bill results in additional trials and court costs.

·         The State may receive additional indeterminate annual revenues from increased fines and penalties assessed on individuals convicted of the upgraded crimes.  Moreover, in addition to upgrading the crimes from the fourth degree to the third degree, the bill establishes a fine of $50,000 that would automatically be applied to any person who violates the patient referral laws.  The OLS notes, however, that many penalties historically go unpaid by those convicted of crimes.

BILL DESCRIPTION

 

     This bill revises current law that criminalizes certain payments for the referral of patients to substance use disorder treatment facilities.  The bill makes it a crime of the third degree for a person to make or receive a payment or otherwise furnish or receive any fee, commission, or rebate to any person in connection with the referral of patients to substance use treatment disorder facilities regulated by the Division of Mental Health and Addiction Services in the Department of Human Services.  The bill also provides that a person is guilty of a crime of the third degree if the person knowingly assists, conspires with, or urges any person to make, furnish, or receive a payment, fee, commission, or rebate in violation of the bill’s provisions.  A crime of the third degree is ordinarily punishable by a term of three to five years imprisonment, a fine of up to $15,000, or both.  Under current law, these offenses are crimes of the fourth degree, which are punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both.  Under the bill, a person convicted under either of these offenses additionally would be required to make restitution and pay a fine of $50,000.

      The bill expressly includes health care providers, health care facilities, non-profit organizations, and recovery residences under the scope of these laws.

 

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS finds that the bill’s expansion of current law concerning patient referrals to substance use disorder treatment facilities to include health care providers, health care facilities, non-profit organizations, and recovery residences would increase the workload of the Department of Law and Public Safety, the Judiciary, and the Office of Public Defender to the extent the bill results in additional trials and court costs.  Crimes of the third degree and crimes of the fourth degree carry the presumption of non-incarceration for first time offenders so the upgrade of the offenses is not expected to result in additional costs to the Department of Corrections or the State Parole Board.

      The State may receive additional indeterminate annual revenues from increased fines because the upgraded crimes carry increased financial penalties.  Moreover, in addition to upgrading the crimes from the fourth degree to the third degree, the bill establishes a fine of $50,000 that would automatically be applied to any person who violates the patient referral laws.  The OLS notes, however, that many penalties historically go unpaid by those convicted of crimes.

 

 

Section:

Judiciary

Analyst:

Anuja Pande Joshi

Senior Fiscal 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.).