ASSEMBLY APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3973

STATE OF NEW JERSEY

DATED:  JUNE 24, 2024

      The Assembly Appropriations Committee reports favorably Assembly Bill No. 3973.

      This bill would revise the 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 a facility licensed in accordance with section 8 of P.L.1975, c.305 (C.26:2B-14) for substance use disorder treatment or services or to a substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.).  The bill makes it a crime of the third degree for a person to knowingly assist, conspire with, or urge any person to make, furnish, or receive a payment, fee, commission, or rebate in violation of P.L.2021, c.31 (C.2C:40A-6).  Under current law, these offenses are crimes of the fourth degree.  The bill would also establish a fine of $50,000 that would automatically be applied to any person who violates these patient referral laws.

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

FISCAL IMPACT:

      The Office of Legislative Services (OLS) finds that the bill’s expansion of current law concerning patient referrals to substance us 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 the 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.