Requires certain providers of substance or alcohol use disorder treatment, services, or supports to be assessed for conflicts of interest prior to receiving State funds, licensure, or certification.

A2268 TR

ASSEMBLY, No. 2268

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman MARGIE DONLON, M.D.

District 11 (Monmouth)

Assemblywoman CLEOPATRA G. TUCKER

District 28 (Essex and Union)

Assemblyman� MICHAEL VENEZIA

District 34 (Essex)

Co-Sponsored by:

Assemblyman Verrelli, Assemblywoman Reynolds-Jackson,
Assemblyman Stanley, Assemblywomen Speight, Carter, Assemblyman Wainstein and
Assemblywoman Bagolie

SYNOPSIS

���� Requires certain providers of substance or alcohol
use disorder treatment, services, or supports to be assessed for conflicts of
interest prior to receiving State funds, licensure, or certification.

CURRENT VERSION OF TEXT

���� As reported by the Assembly Oversight, Reform and
Federal Relations Committee with technical review.

��

An Act

concerning conflicts of interest and substance
and alcohol use disorder treatment, services, and supports and supplementing
Title 30 of the Revised Statues.

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

���� 1.��� a.� A reviewing entity
shall be required to assess a provider for conflicts of interest that could
impede the provider�s ability to deliver treatment, services, or supports for
substance or alcohol use disorder prior to the distribution of State funds or
the approval of any applicable licensures or certifications.� A reviewing
entity shall not be required to administer a conflict of interest assessment on
the same provider more frequently than once every 365 days, except as otherwise
provided in subsection e. of this section.�

���� b.��� A conflict of interest
assessment shall include, at a minimum, a review of the following information
submitted by the provider to the reviewing entity:�

���� (1)�� a financial statement
itemizing annual revenues, expenditures, and profits;

���� (2) a list of all board
members, including each board member�s profession and employer;

���� (3)�� a list of all
stakeholders, investors, owners, or any other individuals or entities that hold
a financial interest in the provider;

���� (4)�� a list of all
stakeholders, investors, owners, or any other individuals or entities that hold
a financial interest in the provider and that have a financial interest in a
secondary entity and the name of the secondary entity;�

���� (5)�� a list of all staff
members, indicating each member�s title and job duties; and

���� (6)�� a list of any staff
members who hold outside employment, the name of the staff member�s outside
employer, and the staff member�s responsibilities under that outside position.

���� c.���� If, upon review of the
information submitted by the provider under subsection b. of this section, the
reviewing entity determines that a conflict of interest exists that could
impede the provider�s ability to deliver treatment, services, or supports for substance
or alcohol use disorder, the reviewing entity shall notify the provider, in
writing, of the determination, along with: (1) a description of the conflict of
interest and how the conflict can be remedied; and (2) a statement that the
provider will be ineligible to receive State funds, or licensure or
certification approval, from the reviewing entity, and that any application for
State funds submitted to the reviewing entity will be held, unless the provider
remedies the conflict of interest within 90 days following the receipt of the
written notification from the reviewing entity.

���� d.��� Upon receipt of
documentation from the provider that the conflict of interest has been
remedied, the reviewing entity shall immediately:

���� (1)�� distribute to the
provider any State funds that the provider is otherwise eligible to receive;

���� (2)�� withdraw any hold placed
on an application for State funds, as submitted by the provider, and process
that application according to the existing eligibility guidelines for that
application; and

���� (3)�� provide any
certification or licensure to the provider that the provider is otherwise
eligible to receive.��

���� e.���� After the provider has
remedied the identified conflict of interest, the reviewing entity shall
reassess the provider for conflicts of interest twice in the next calendar
year, once in the second calendar year, and once in the third calendar year.

���� f.���� As used in this act:

���� �
Conflict of interest� mean any circumstance that creates a
risk that the judgment or action by any individual or entity having a financial
interest in, employed by, or otherwise affiliated with a provider will be
unduly influenced by a secondary, outside interest.� �Conflict of interest�
shall not include an individual�s or an entity�s ownership, in whole or in
part, of more than one facility or program that provides
substance use
disorder or alcohol use disorder treatment, services, or supports
.

����
�Provider� means a health care professional,
facility, or program licensed or certified in the State, or applying for
licensure or certification in the State, to provide substance use disorder or
alcohol use disorder treatment, services, or supports.

���� �Reviewing entity� means a
department, agency, bureau, board, commission, authority, or other entity of
the State, or of any county or municipality, that: (1) provides State funds via
contracts, grants, direct State aide, or any other means to a provider; or (2)
licenses or certifies any provider that accepts client referrals from a
State-funded entity.

���� 2. A reviewing entity that is
authorized to adopt rules and regulations in accordance with the
�Administrative Procedure Act,� P.L.1968, c.410 (C.52:14B-1 et seq.), shall
adopt rules and regulations pursuant to P.L.1968, c.410 (C.52:14B-1 et seq.) if
necessary to effectuate the provisions of this act.

���� 3.��� This act shall take
effect on the 180th day following enactment.