ASSEMBLY HOUSING COMMITTEE

STATEMENT TO

ASSEMBLY, No. 3976

STATE OF NEW JERSEY

DATED:  JUNE 19, 2025

      The Assembly Housing Committee reports favorably Assembly Bill No. 3976.

      This bill revises licensure requirements for residential substance use disorders treatment facilities or programs.

      Under the bill, the Department of Health (department) is to require an applicant for licensure to operate as a residential substance use disorders treatment facility or program to submit to the department a financial audit that is conducted by an independent, certified public accountant, who is chosen by the department.  The applicant is to bear the cost of the audit.  The department is to deny an application for licensure if the financial audit reveals business practices or financial activities that are deemed improper or questionable by the department. 

      The bill provides that the department is to require an applicant for licensure to operate as a residential substance use disorders treatment facility or program to complete a criminal history record background check and submit to being fingerprinted.  The department is to deny an application for licensure if the results of the criminal background check reveal a conviction involving dishonesty or fraud.

      Finally, the bill requires the department to periodically conduct unannounced inspections of residential substance use disorders treatment facilities or programs.