ASSEMBLY, No. 4482

STATE OF NEW JERSEY

221st LEGISLATURE

 

INTRODUCED JUNE 6, 2024

 


 

Sponsored by:

Assemblyman  DAVID BAILEY, JR.

District 3 (Cumberland, Gloucester and Salem)

 

 

 

 

SYNOPSIS

     Regulates use of social care information.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning social care information and supplementing Title 56 of the Revised Statutes.

 

     Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

     1.  As used in this act:

     “Closed-Loop Referral System” or “CLRS” means any system that stores the social care information of one or more individuals; enables the sharing of social care information with and between participating entities for the purpose of referring individuals for social care; and is capable of updating or showing updated referral activity, including data related to participating organizations completing referrals.

     “Participating organization” means any entity that has the ability to create, receive, or update referrals, or other social care information in a CLRS, including, but not limited to, healthcare providers, health plans, public agencies, charitable and nonprofit organizations, CLRS technology vendors, and entities that provide social care.

     “Social care” means care, services, goods, or supplies related to an individual’s social needs.  “Social care” includes, but is not limited to, support and assistance for an individual’s food stability and nutritional needs, housing, transportation, economic stability, employment, education access and quality, child care and family relationship needs, and environmental and physical safety.

     “Social care information” means any information that relates to the need for, payment for, or provision of social care, and identifies the person receiving social care, or for which there is a reasonable basis to believe the information can be used to identify the individual receiving social care.

 

     2.  a.  In a manner that is consistent with federal and State law, a participating organization shall not sell or license social care information that is stored in or transmitted through a closed-loop referral system.

     b.  In a manner that is consistent with federal and State law, social care information stored in or transmitted through a closed-loop referral system shall not be used for any purpose other than the purpose for which that information was collected or generated.

     c.  A participating organization that sells, offers for sale, licenses, or otherwise furnishes, provides, or transmits to any other individual or entity social care information in violation of this section shall be liable to a civil penalty of $1,000 for each violation.

     d.  A civil penalty assessed pursuant to this section shall be collected and enforced by the Division of Consumer Affairs in the Department of Law and Public Safety in summary proceedings before a court of competent jurisdiction pursuant to the provisions of the “Penalty Enforcement Law of 1999,” P.L.1999, c.274 (C.2A:58-10 et seq.).

 

     3.  The Director of the Division of Consumer Affairs in the Department of Law and Public Safety shall adopt rules and regulations, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), as shall be necessary for the implementation of this act.

 

     4.  This act shall take effect 180 days following the date of enactment.

 

 

STATEMENT

 

     This bill regulates the use of social care information.

     The bill defines “Closed-Loop Referral System” or “CLRS” to mean any system that stores the social care information of one or more individuals; enables the sharing of social care information with and between participating entities for the purpose of referring individuals for social care; and is capable of updating or showing updated referral activity, including data related to participating organizations completing referrals.  “Participating organization” means any entity that has the ability to create, receive, or update referrals, or other social care information in a CLRS, including, but not limited to, healthcare providers, health plans, public agencies, charitable and nonprofit organizations, CLRS technology vendors, and entities that provide social care.  “Social care” means care, services, goods, or supplies related to an individual’s social needs.  “Social care” includes, but is not limited to, support and assistance for an individual’s food stability and nutritional needs, housing, transportation, economic stability, employment, education access and quality, child care and family relationship needs, and environmental and physical safety.  “Social care information” means any information that relates to the need for, payment for, or provision of social care, and identifies the person receiving social care, or for which there is a reasonable basis to believe the information can be used to identify the individual receiving social care.

     The bill provides that a participating organization is not to sell or license social care information that is stored in or transmitted through a closed-loop referral system.

     Under the bill, social care information stored in or transmitted through a closed-loop referral system is not to be used for any purpose other than the purpose for which that information was collected or generated.

     The bill provides that a participating organization that sells, offers for sale, licenses, or otherwise furnishes, provides, or transmits to any other individual or entity social care information in violation of the bill’s provisions is to be liable to a civil penalty of $1,000 for each violation.