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.

S3990

SENATE, No. 3990

STATE OF NEW JERSEY

222nd LEGISLATURE

�

INTRODUCED MARCH 19, 2026

Sponsored by:

Senator� JOSEPH F. VITALE

District 19 (Middlesex)

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 introduced.

��

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 the 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.�

���� 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, until the provider
remedies the conflict of interest.

���� 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.���� As used in this
section:

���� �
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.

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

STATEMENT

���� This bill requires any department,
agency, bureau, board, commission, authority, or other entity of the State, or
of any county or municipality, that provides State funds to providers, or
licenses or certifies any provider that accepts client referrals from a
State-funded entity, to assess the provider for conflicts of interest the 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. Under the bill,
�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.� Moreover, �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.

����
A conflict of interest assessment under the bill
is required to 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. �A reviewing
entity is not required to administer a conflict of interest assessment on the
same provider more frequently than once every 365 days.�

���� If, upon review of the
information submitted by the provider, the reviewing entity determines that a
conflict of interest exists, 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, until the provider
remedies the conflict.

���� 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.��