S4019

An Act concerning substance use disorder treatment facilities and supplementing P.L.1970, c.334 (C.26:2G-21 et seq.).

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

1. a. As a condition of licensure, a new residential substance use disorder treatment facility that applies for an initial license from the Department of Health after the effective date of this act shall ensure that no less than 40 percent of the facility’s beds are for use by NJ FamilyCare eligible individuals. A new residential substance use disorder treatment facility shall attain the required NJ FamilyCare utilization rate within 12 months of the date of initial licensure and shall maintain this utilization rate thereafter.

b. As a condition of licensure renewal, a currently licensed residential substance use disorder treatment facility shall attain the 40 percent NJ FamilyCare utilization rate, established pursuant to paragraph a. of this section, within 12 months of the date of the facility’s next license renewal following the effective date of this act, and shall maintain this utilization rate thereafter.

c. (1) In the case of a new facility that fails to comply with the provisions of paragraph a. of this section, the Department of Health shall not issue an initial license to operate until such time as the facility documents compliance with the minimum NJ FamilyCare utilization rate established pursuant to paragraph a. of this section.

(2) In the case of a currently licensed residential substance use disorder treatment facility that fails to comply with the provisions of paragraph b. of this section, the Department of Health shall not renew the facility’s license to operate until such time as the facility documents compliance with the minimum NJ FamilyCare utilization rate established pursuant to paragraph a. of this section.

d. As used in this section:

“License” means a certificate of approval pursuant to P.L. 1970, c.334 (C.26:2G-21 et seq.).

“NJ FamilyCare” means the program established pursuant to P.L.2005, c.156 (C.30:4J-8 et al.), which includes the State's Medicaid Program and the Children's Health Insurance Program.

“Residential substance use disorder treatment facility” means a facility, or a distinct part of a facility, that provides care for the treatment of substance use disorders, for 24 or more consecutive hours to two or more clients who are not related to the governing authority or its members by marriage, blood, or adoption. This term shall include: halfway houses, extended care facilities, long-term residential facilities, and short-term residential facilities; and any similar facility providing substance use disorders treatment services including hospital-based and non-hospital-based detoxification through a structured recovery environment involving professional clinical services.

2. The Commissioner of Health shall, in accordance with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), adopt rules and regulations as necessary to implement this act.

3. This act shall take effect on the first day of the seventh month next following the date of enactment.

STATEMENT

This bill provides that a new residential substance use disorder treatment facility that applies for initial licensure from the Department of Health (DOH) must ensure that at least 40 percent of the facility’s beds are for use by NJ FamilyCare eligible individuals. Such a facility will be required to attain this NJ FamilyCare utilization rate within 12 months of initial licensure and must maintain this utilization rate thereafter. In the case of a new facility that fails to comply with the minimum NJ FamilyCare utilization rate, the bill provides that the DOH will not issue an initial license to operate as a residential substance use disorder treatment facility until such time as the facility documents compliance.

A residential substance use disorder treatment facility that currently operates under a DOH license will be required to meet the 40 percent NJ FamilyCare utilization rate within 12 months of the date of the facility’s next licensure renewal, and will be required to maintain this utilization rate thereafter. If the facility fails to attain the minimum NJ FamilyCare utilization rate established under the bill, the DOH may not renew the facility’s license to operate until such time as the facility documents compliance with this requirement.

The bill defines a “residential substance use disorder treatment facility” as a facility, or a distinct part of a facility, that provides care for the treatment of substance use disorders, for 24 or more consecutive hours to two or more clients who are not related to the governing authority or its members by marriage, blood, or adoption. Under the bill, this term includes the following facilities: halfway houses, extended care facilities, long-term residential facilities, and short-term residential facilities; and any similar facility providing substance use disorders treatment services including hospital-based and non-hospital-based detoxification through a structured recovery environment involving professional clinical services.