SENATE BUDGET AND APPROPRIATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3973

with committee amendments

STATE OF NEW JERSEY

DATED:  MARCH 17, 2025

      The Senate Budget and Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 3973.

      As amended, this bill would revise the current law that criminalizes certain payments for the referral of patients to substance use disorder treatment facilities, recovery residences, and clinical laboratories.

      The bill makes it a crime of the third degree for a person, either directly or indirectly, overtly or covertly, in cash or in kind, to make, solicit, offer, or receive a payment or otherwise furnish, solicit, offer, or receive any fee, commission, kickback, bribe, or rebate to any person in connection with the referral of patients to, or in exchange for a patient using the services of, 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, substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.), recovery residence, or clinical laboratory.  The bill makes it a crime of the third degree to knowingly assist, conspire with, or urge any person to make, solicit, offer, furnish, or receive a payment, fee, commission, kickback, bribe, 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, clinical laboratories, and recovery residences under the scope of these patient referral laws.

      The bill provides the Department of Health and the Department of Community Affairs certain authority to investigate alleged violations of the bill and to take certain enforcement actions concerning licensure or certification.

      As amended and reported by the committee, Assembly Bill No. 3973 is identical to Senate Bill No. 3952, which was also amended and reported by the committee on this date.

COMMITTEE AMENDMENTS:

      The committee amendments expressly include clinical laboratories under the scope of the patient referral law under the bill and clarify that the provisions of the bill will apply to persons, including, but not limited to, health care providers, health care facilities, non-profit organizations, clinical laboratories, and recovery residences.

      The committee amendments clarify the scope of the bill and provide that under the bill, it is a crime of the third degree for a person to make, furnish, solicit, offer, or receive a payment, fee, commission, kickback, bribe, or rebate in connection with the referral of patients to, or in exchange for a patient using the services of, a substance use disorder treatment facility, recovery residence, or clinical laboratory.  As introduced, it was a crime of the third degree for a person to make, furnish, or receive a payment, fee, commission, or rebate in connection with the referral of patients to a substance use disorder treatment facility.        

      The committee amendments provide the Department of Health and the Department of Community Affairs certain authority to investigate alleged violations of the bill and to take certain enforcement actions concerning licensure and certification.

      The committee amendments clarify the bill’s definition of “health care provider” to include a registered professional nurse and advanced practice nurse, instead of a nurse and nurse practitioner.

      The committee amendments revise the bill’s definition of “recovery residence.”

      The committee amendments revise the title and synopsis of the bill to reflect these changes.

FISCAL IMPACT:

      Fiscal information for this bill is currently unavailable.