LEGISLATIVE FISCAL ESTIMATE
SENATE, No. 3755
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JANUARY 28, 2025
SUMMARY
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Synopsis: |
Establishes framework for appointment of receiver for provider of services to individuals with developmental disabilities. |
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Type of Impact: |
Potential annual State expenditure increase. |
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Agencies Affected: |
Department of Human Services, the Judiciary. |
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Office of Legislative Services Estimate |
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Annual Fiscal Impact |
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Potential State Expenditure Increase |
Indeterminate |
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· The Office of Legislative Services (OLS) concludes that the bill may result in an annual indeterminate increase in State costs incurred by the Department of Human Services by granting it new authority to file motions in court requesting the appointment of a receiver to certain low performing service providers servicing the developmentally disabled community. The magnitude of this increase will depend on the number of motions filed in a given year, which the OLS cannot reliably estimate.
· The OLS also cannot estimate the amount of additional court costs that the bill will generate for the Judiciary to rule on these motions since these will also depend on the number of motions filed in a given year.
BILL DESCRIPTION
This bill provides protections for individuals with developmental disabilities by establishing a framework that newly allows the Department of Human Services to file a motion in court requesting that a receiver be appointed to manage or oversee the operations of low-performing service providers of the developmentally disabled community. This would be similar to authority held by the State’s Office of the Attorney General and the Department of Health. Applicable services include community residence services, private residential facility services, day habilitation services, individual supports, or any long-term care services. The bill gives the department authority to make a motion for the appointment of a receiver if a service provider displays a pattern of substantial violations of health, safety, or recipient care under federal, State, or local law or if any other condition dangerous to the life, health, or safety of a service recipient exists. This bill sets standards for court proceedings when requesting and appointing a receiver as well as the responsibilities and rights of providers and the department during those proceedings; outlines the authority of the appointed receiver and the termination of the receivership when the objectives of the court order are met; establishes a method for the department to request the transfer of ownership of a site and provider-managed services to a new provider; and creates standards for provider agency defenses.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes that the bill may result in an annual indeterminate increase in State costs incurred by the Department of Human Services. The bill provides the department with new authority to file motions in court requesting the appointment of a receiver to certain low-performing service providers servicing the developmentally disabled community. To the extent that the department uses this new authority, its annual administrative costs will increase by an indeterminate amount. The magnitude of this increase will depend on the number of motions filed in a given year, which the OLS cannot reliably estimate. Similarly, the OLS cannot estimate the amount of additional court costs that the bill will generate for the Judiciary to rule on these motions since these will also depend on the number of motions filed in a given year.
For background, the Office of Program Integrity and Accountability within the department currently investigates and provides oversight, monitoring, and incident reporting for the service providers contracted with the department, which includes those providers affected under the bill. Additionally, the Division of Developmental Disabilities evaluates services provided by division providers and requires corrective action when necessary. Providers are also subject to audits and formal reviews of fiscal and programmatic functions.
For reference only, according to the department’s Office of Program Integrity and Accountability Report Card for Division of Developmental Disabilities Licensed Providers (October 1, 2023 through September 30, 2024), which is based on a three-star rating system, three providers out of 130 received a one star-rating as the provider’s overall score. This score indicates that the provider received a single star in three or more of the six assessed categories, which include health and safety standards, incident reporting, and timeliness of corrective actions. In all, 56 of the 130 service providers received a single star in at least one of the six assessed categories.
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Section: |
Human Services |
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Analyst: |
Principal Research Analyst |
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Approved: |
Thomas Koenig Legislative Budget and Finance Officer |
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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.).