ASSEMBLY APPROPRIATIONS COMMITTEE
STATEMENT TO
[First Reprint]
ASSEMBLY, No. 4535
with committee amendments
STATE OF NEW JERSEY
DATED: FEBRUARY 20, 2025
The Assembly Appropriations Committee reports favorably and with committee amendments Assembly Bill No. 4535 (1R).
As amended and reported, 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 supervisors, of which at least one is required to be present at the cooperative sober living residence at all times, who are 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
COMMITTEE AMENDMENTS:
The committee amendments to the bill to remove a requirement that cooperative sober living residences employ a live-in supervisor, and instead requires that a residence employ multiple supervisors and require that at least one be present at the residence at all times.
FISCAL IMPACT:
The Office of Legislative Services (OLS) concludes that the bill will result in a State expenditure increase of up to $100,000 in the first year the bill is in effect for the Department of Community Affairs to conduct additional inspections of cooperative sober living residences, and maintain certain lists and reports. If the full $100,000 is not expended in the first year, the residual amount will be spent in subsequent fiscal years until the full $100,000 is exhausted.
The bill will also result in increased revenue for the State and certain municipalities by increasing civil penalties for each rooming and boarding house licensure violation from a limit of up to $5,000 to a limit of up to $25,000.