SENATE HEALTH, HUMAN SERVICES AND SENIOR CITIZENS COMMITTEE

STATEMENT TO

SENATE, No. 1032

with committee amendments

STATE OF NEW JERSEY

DATED:  JUNE 6, 2024

      The Senate Health, Human Services and Senior Citizens Committee reports favorably and with committee amendments Senate Bill No. 1032.

      As amended, the bill requires the Commissioners of Human Services and Children and Families to each conduct a study on the current status and future needs for service providers contracted with their respective department. 

      The bill requires each commissioner to annually evaluate the rates paid to service providers contracted with their respective department and assess a cost of living adjustment for each service provider, which will be based on the Consumer Price Index for the previous 12-month period beginning October 1 and ending September 30, as published by the United States Department of Labor.

      The bill requires each commissioner to submit to the Governor and Legislature the findings of the study conducted pursuant to the bill and any recommendations for policy or legislative action.  Each commissioner will be required to submit an annual report on the rates evaluated and the cost of living adjustments assessed pursuant to the bill.  Each commissioner will be required to make the reports required pursuant to this bill available to the public on their respective department’s website.

      The bill defines service providers to mean a provider, program, or organization providing mental health services, substance use disorder treatment services, or services to persons with developmental disabilities.  The bill provides that a program providing mental health services, substance use disorder treatment services, or services to persons with developmental disabilities includes State programs partially funded or fully funded by Medicaid and licensed or approved by the Commissioner of Human Services or other appropriate State licensing agencies. 

      This bill was pre-filed for introduction in the 2024-2025 session pending technical review.  As reported, the bill includes the changes required by technical review, which has been performed.
COMMITTEE AMENDMENTS:

      The committee amendments remove the provisions of the bill that would provide an annual increase in the cost of living adjustment for certain contracts between the Department of Human Services and a program providing mental health services, substance use disorder treatment services, or services to persons with developmental disabilities.

      The committee amendments require the Commissioners of Human Services and Children and Families to each conduct a study on the current status and future needs for service providers contracted with their respective department.

      The committee amendments require each commissioner to annually evaluate the rates paid to service providers contracted with their respective department and assess a cost of living adjustment for each service provider.

      The committee amendments define “service providers” to mean a provider, program, or organization providing mental health services, substance use disorder treatment services, or services to persons with developmental disabilities.

      The committee amendments require each commissioner to submit to the Governor and Legislature the findings of the study conducted pursuant to the bill and any recommendations for policy or legislative action.  Each commissioner will be required to submit an annual report on the rates evaluated and the cost of living adjustments assessed pursuant to the bill.  Each commissioner will be required to make the reports required pursuant to this bill available to the public on their respective department’s website.

      The committee amendments revise the synopsis of the bill to reflect these changes.