ASSEMBLY HEALTH COMMITTEE

STATEMENT TO

ASSEMBLY, No. 5634

with committee amendments

STATE OF NEW JERSEY

DATED:  DECEMBER 11, 2025

      The Assembly Health Committee reports favorably and with committee amendments Assembly Bill No. 5634.

      This bill, as amended, enhances the enforcement authority over developmental disability service providers, and establishes the “Residential Facility Quality of Care Improvement Fund” in the Department of Human Services (department).

      The department possesses licensing authority pursuant to N.J.A.C.10:44A-1.8 et seq. to take negative licensing actions against noncompliant providers, such as issuing written warnings, halting admissions, issuing provisional licensing, revoking licenses, and assigning a quality management team.  This bill expands that authority to impose financial penalties.  In determining the amount of any financial penalty, the bill, as amended, directs the department to consider: whether the provider has had a history or pattern of repeated violations; the provider’s compliance with investigations and plans of correction; and whether the provider has taken adequate action to prevent future incidents.  The Office of Program Integrity & Accountability in the department licenses providers of residential services to adults with developmental or intellectual disabilities, while the Division of Developmental Disabilities in the department authorizes payment to providers of services to adults with developmental or intellectual disabilities through contracts and a fee-for-service system.

      Under the amended bill, the department is to have the authority to license authorized providers and licensed providers, as both of these terms are defined in the bill.

      The bill, as amended, provides that any person, firm, partnership, corporation, or association operating a residential setting without a license when a license is required or operating a day habilitation program without a certification is to be subject to penalties.  Any licensed provider that has been granted a second consecutive provisional license for the same licensed location is to be subject to a penalty.

      Any authorized provider or licensed provider is to be subject to penalties provided for in the bill if the provider:  (1) employs or fails to remove from employment a person who has been placed on the Central Registry of Offenders Against Individuals with Developmental Disabilities or included on the child abuse registry; (2) fails to conduct an initial or biannual criminal history record background check; (3) fails to meet the requirements of drug testing for controlled dangerous substances; (4) receives a substantiated finding from the Office of Investigations in the Department of Human Services of a violation outlined in the bill; (5) fails to conduct an internal investigation of an allegation of abuse, neglect, or exploitation of an individual with a developmental disability and submit a complete report, as described in the bill, to the department within 180 days of the date of the alleged incident; (6) fails to submit a plan of correction that addresses all cited violations and concerns to the department upon the completion of an investigation closed by the Office of Investigations, or (7) is assigned a Quality Management Team by the department due to demonstrating chronic noncompliance with health, safety, or quality requirements over an extended period of time and across multiple locations or programs.

      The bill also amends section 3 of P.L.2010, c.5 (C.30:6D-75) to grant the department authority to impose civil penalties for individuals who violate reporting obligations under P.L.2010, c.5 (C.30:6D-75), rather than penalties being imposed once that person is convicted of a disorderly person offense.

      Finally, bill, as amended, establishes the “Residential Facility Quality of Care Improvement Fund” in the department as the repository of fines imposed pursuant to section 3 of P.L.2010, c.5 (C.30:6D-75).  These funds are to be used to finance quality improvement initiatives, and administrative, licensing, and regulatory actions taken by the department to implement the provisions of the bill.

COMMITTEE AMENDMENTS

      The committee amendments:

      1) revise the definition of “administrative neglect”;

      2) direct the department to consider a provider’s history of violations in determining penalties;

      3) clarify that a licensed provider is subject to a penalty when the provider has been granted a second consecutive provisional license for the same licensed location;

      4) clarify that finding of administrative neglect must result in a moderate or major injury for a provider to be subject to a penalty;

      5) remove the term “adequate” from subsection h. of section 2;

      6) establish a set of reporting requirements;  

      7) clarify that a provider is subject to a penalty for failing to submit a plan of correction that addresses all cited violations and concerns;

      8) provide that a provider who demonstrates chronic noncompliance may be assigned a Quality Management Team by the department and may be subject to a penalty of not more than $5,000 every three months until the Quality Management Team determines that the provider has demonstrated improvement;

      9) revise the penalty provision within subsection b. of section 2; and

      10) clarify that the Office of Investigations is within the Department of Human Services.