ASSEMBLY, No. 2280

STATE OF NEW JERSEY

219th LEGISLATURE

 

INTRODUCED JANUARY 27, 2020

 


 

Sponsored by:

Assemblyman  JOHN ARMATO

District 2 (Atlantic)

Assemblywoman  CAROL A. MURPHY

District 7 (Burlington)

Assemblywoman  VALERIE VAINIERI HUTTLE

District 37 (Bergen)

 

Co-Sponsored by:

Assemblyman Verrelli

 

 

 

 

SYNOPSIS

     Prohibits certain substance use disorder treatment facilities from paying fees, commissions, or rebates to any person to refer patients to facility.

 

CURRENT VERSION OF TEXT

     As introduced.

  


An Act concerning referrals to substance use disorder treatment facilities and supplementing Title 26 of the Revised Statutes.

 

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

 

     1.    a.  Except as provided in subsection b. of this section, no substance use disorder treatment facility approved and licensed in accordance with section 8 of P.L.1975, c.305 (C.26:2B-14) shall pay or otherwise furnish any fee, commission, or rebate to any person to refer patients to the facility for substance use disorder treatment or services.  Each violation of the provisions of this section shall be punishable by a civil penalty of up to $25,000, which shall be collected and enforced by the Commissioner of Human Services in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.). 

     b.    The penalties imposed pursuant to subsection a. of this section shall not apply to a fee, commission, or rebate that does not vary based on:

     (1)   the number of patients referred to a substance use disorder treatment facility;

     (2)   the duration, level, volume, or nature of the treatment services provided to a patient; or

     (3)   the amount paid by a carrier to a substance use disorder treatment facility for treatment or services provided to a patient.

 

     2.    a.  Except as provided in subsection b. of this section, no substance use disorder treatment facility issued a certificate of approval pursuant to P.L.1970, c.334 (C.26:2G-21 et seq.) shall pay or otherwise furnish any fee, commission, or rebate to any person to refer patients to the facility for substance use disorder treatment or services.  Each violation of the provisions of this section shall be punishable by a civil penalty of up to $25,000, which shall be collected and enforced by the Commissioner of Human Services in a summary proceeding pursuant to the "Penalty Enforcement Law of 1999," P.L.1999, c.274 (C.2A:58-10 et seq.).

     b.    The penalties imposed pursuant to subsection a. of this section shall not apply to a fee, commission, or rebate that does not vary based on:

     (1)   the number of patients referred to a substance use disorder treatment facility;

     (2)   the duration, level, volume, or nature of the substance use disorder treatment services provided to a patient; or

     (3)   the amount of benefits provided by a carrier to a substance use disorder treatment facility for treatment or services provided to a patient.

     3.    The Commissioner of Human Services, pursuant to the “Administrative Procedure Act,” P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to implement the provisions of this act.

 

     4.    This act shall take effect immediately.

 

 

STATEMENT

 

     This bill prohibits substance use treatment disorder facilities regulated by the Division of Mental Health and Addiction Services in the Department of Human Services from paying or otherwise furnishing any fee, commission, or rebate to any person for referring patients to the facility for treatment or services.  Each violation of the bill is punishable by a civil penalty of up to $25,000. 

     The civil penalties imposed under the bill will not apply to the payment of a fee, commission, or rebate that does not vary based on the number of patients referred to a substance use disorder treatment facility; the duration, level, volume, or nature of the substance use disorder treatment services provided to a patient; or the amount paid by a carrier to a substance use disorder treatment facility for treatment or services provided to a patient.