LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
SENATE, No. 3565
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: MARCH 4, 2025
SUMMARY
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Synopsis: |
Codifies and extends authorization for certain out-of-State health care practitioners and recent graduates of health care training programs to practice in New Jersey. |
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Type of Impact: |
Annual State expenditure and revenue increase. |
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Agencies Affected: |
Division of Consumer Affairs, Department of Law and Public Safety. |
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Office of Legislative Services Estimate |
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Fiscal Impact |
Annual |
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State Expenditure Increase |
Indeterminate |
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State Revenue Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the bill will have an indeterminate net impact on State finances, attributable to the countervailing effects of increased administrative costs for the Department of Law and Public Safety’s Division of Consumer Affairs to monitor compliance with the licensure reporting requirements under the bill, and increased State revenues pursuant to the civil penalties provided under the bill.
BILL DESCRIPTION
This bill provides that health care professionals, who are licensed or certified in another state and who apply for licensure or certification in New Jersey, will be authorized to practice for up to one year in this State pending a final determination on the individual’s application. This provision specifically applies to: alcohol and drug counselors; marriage and family therapists; professional counselors; physicians; homemaker-home health aides; professional, practical, and advanced practice nurses; psychologists; psychoanalysts; respiratory care practitioners; and social workers.
The bill stipulates that the other states where the individuals seeking the one-year license in New Jersey are from must also require state and federal background checks to obtain licensure in that state.
The bill also requires that the applicable New Jersey licensure boards review information reported by the National Practitioner Data Bank regarding any adverse disciplinary action against a professional seeking the one-year license. A professional practicing in the State under a provisional authorization to practice is required to notify the Division of Consumer Affairs if the professional’s out-of-state license or certification is suspended, revoked, or subject to adverse disciplinary action. Subsequent to such notification, the division will make a determination regarding the individual’s continuing authorization to practice in the State under the provisional authorization, including a review of any findings in the National Practitioner Data Bank. The professional will be prohibited from practicing in the State until the division makes its determination. A professional who fails to provide notice of an adverse action by another state will be liable for a civil penalty of $500 per day for each day the notice is not provided.
The bill also provides that recent graduates of certain accredited health care professional training programs will be authorized to practice under a temporary State license until the person attains full State licensure or fails the State’s requisite licensure examination. This provision applies to professional counselors, physician assistants, professional nurses, practical nurses, pharmacists, respiratory care practitioners, and social workers who have graduated within the prior six months and meet additional State requirements.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill will have an indeterminate net impact on State finances, attributable to the countervailing effects of increased administrative costs for the Division of Consumer Affairs to monitor compliance with the licensure reporting requirements under the bill, and increased State revenues pursuant to the civil penalties provided under the bill.
The OLS assumes that the division will incur an indeterminate increase in administrative costs to review and issue a determination regarding an out-of-State professional’s authorization to practice in the State, subsequent to an adverse licensure action taken by another state. The National Practitioner Data Bank charges states $2.50 for continuous monitoring of one health care practitioner and notifies the relevant State licensure board of a new or updated report naming that practitioner. Absent information regarding the number of out-of-State practitioners who may be affected by this provision in the bill, the OLS is unable to estimate the magnitude of the increase in the division’s administrative costs.
The $500 per day civil penalties, imposed on an out-of-State professional who fails to notify the division concerning an adverse licensure action taken by another state, will increase State revenues by an indeterminate amount. Because the number of out-of-State professionals who may face civil penalties under the bill and the amount of any penalties imposed on out-of-State professionals are unknown, the OLS is unable to quantify the magnitude of this revenue increase.
For background, the National Practitioner Data Bank, which is operated by the Health Resources and Services Administration in the United States Department of Health and Human Services, collects and reports certain information concerning the professional competence and conduct of health care professionals. This information is only reportable to certain eligible entities, including State licensure boards for health care professionals.
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Section: |
Human Services |
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Analyst: |
Senior Fiscal Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).