ASSEMBLY OVERSIGHT, REFORM AND FEDERAL RELATIONS COMMITTEE

STATEMENT TO

ASSEMBLY, No. 4535

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 16, 2024

      The Assembly Oversight, Reform and Federal Relations Committee reports favorably and with committee amendments Assembly Bill No. 4535.

      As amended, the bill amends the "Rooming and Boarding House Act of 1979" to strengthen the State’s regulation of cooperative sober living residences, as defined in the bill.  The bill considers and adopts several recommendations by the New Jersey State Commission of Investigation’s February 2024 investigative report titled “The Dirty Business Behind Getting Clean” and related public hearings concerning fraud, ethical misconduct, and corruption in the addiction rehabilitation industry.

      Specifically, the bill increases the maximum civil penalty for certain licensing violations for a rooming or boarding house, including cooperative sober living residences.  The bill requires the Department of Community Affairs (DCA) to maintain a list of licensed cooperative sober living residences on its Internet website including the location and contact information for each licensed cooperative sober living residence.  The bill requires two unannounced inspection and record reviews of cooperative sober living residences per year to determine whether the owner or operator of the cooperative sober living residence is complying with the provisions of the "Rooming and Boarding House Act of 1979."  The bill also establishes reporting requirements for incidents affecting the safety or welfare of cooperative sober living residence residents or staff, which includes an immediate notification to DCA and a written report of the incident within five working days of the incident.  Incidents for which the bill’s reporting requirements would apply include:

      (1)  fire, flood, disaster, accident, or other unanticipated event that results in the serious injury or death of a resident or staff member, or the evacuation of residents from the cooperative sober living residence, or closure of the cooperative sober living residence for six or more hours;

      (2)  serious injury or death of a resident of the cooperative sober living residence, including overdose;

      (3)  outbreak of a communicable disease or other condition that adversely affects multiple residents or staff;

      (4)  alleged or suspected crimes that endanger the life or safety of residents or staff, or which jeopardize the operations or fiscal stability of the cooperative sober living residence;

      (5)  disciplinary actions concerning staff, including termination, resulting from inappropriate staff interaction with residents; and

      (6)  criminal convictions or disciplinary sanctions imposed on staff or board members or representatives of the governing authority by licensing or credentialing boards since the prior application for licensure.

      Under the bill, the Commissioner of Community Affairs (commissioner), in consultation with the Commissioner of Health and the Commissioner of Human Services, is to require cooperative sober living residences to:

      (1)  employ no less than one supervisor who is required to live in the cooperative sober living residence and who is certified as meeting qualifications, established by the commissioner, requisite to manage the operations of a cooperative sober living house and assist others in recovery from alcohol and drug addiction in a manner to be determined by the commissioner and consistent with;

      (2)  forbid possession or use of alcohol or illicit drugs within the residence and subject residents to random testing for alcohol and drug use; and

      (3)  encourage residents to attend self-help programs that are centered on recovery from alcohol and drug addiction, participate in activities related to maintaining sobriety and continuing recovery from alcohol and drug addiction, and receive off-site services deemed desirable or necessary to maintain sobriety.

      The bill is to take effect on the first day of the fourth month following enactment, except that: section 3 of the bill, providing certain requirements for the inspection of cooperative sober living residences, is to take effect on the first day of the next calendar year next following enactment; and the commissioner is to be permitted to take anticipatory action necessary to implement the provisions of the bill, including the promulgation of necessary rules and regulations to ensure the proper certification and responsibilities of supervisors of cooperative sober living residences.

      The bill also appropriates $100,000 to DCA to effectuate the purposes of the bill and makes additional technical corrections.

COMMITTEE AMENDMENTS:

      The committee amended the bill to:

      (1)  remove a requirement to employ staff members at a cooperative sober living residence and, instead, establish a requirement, with associated authorization for advanced rulemaking, for cooperative sober living residences to employ no less than one supervisor who is certified according to the department’s requirements;

      (2)  require cooperative sober living residences to encourage residents to attend certain self-help programs, participate in activities related to maintaining sobriety, and receive off-site services as needed, rather than providing counseling services and meetings on-site;

      (3)  appropriate $100,000 to DCA to effectuate the provisions of the bill; and

      (4)  change the title and synopsis to reflect the appropriation.