LEGISLATIVE FISCAL ESTIMATE TO

[First Reprint]

SENATE COMMITTEE SUBSTITUTE FOR

SENATE, No. 206

STATE OF NEW JERSEY

DATED: MARCH 27, 1997

Bill Summary:

      Senate Committee Substitute for Bill No. 206 (1R) of 1996 bars persons, excluding nurses and doctors who are already licensed by the State, who have been convicted of certain crimes or disorderly person offenses such as serious drug offenses, homicide, assault, kidnaping, robbery or theft, from employment with certain facilities, home health agencies, nurses' registries, employment agencies, or temporary help agencies which employ persons who serve persons 60 years of age or older. Facility includes, but is not limited to, public or private nursing homes, rehabilitation centers, residential health care facilities, general hospitals, special hospitals, chronic disease hospitals, psychiatric hospitals, developmental centers or facilities, day care centers for the elderly, medical day care centers and licensed home health care agencies.

      Under the provisions of the bill, no person could: (1) be hired by a facility offering health related services for the institutionalized elderly; or (2) provide any home health services to the elderly until either the Commissioner of Health and Senior Services(DHSS) or the Director of the Division of Consumer Affairs in the Department of Law and Public Safety (DLPS), as appropriate, determines that the person has not been convicted of any of the crimes and offenses specified in the bill. The bill, as amended, requires the Commissioner of DHSS or the Director of the Division of Consumer Affairs to send notices to an applicant's employer, as well as the applicant, concerning the results of the background check and an applicant's petition for a hearing. Certain due process rights are offered the applicant in case of disqualification. Conditional employment for up to 180 days would be allowed, if the applicant attests that he has not been convicted of any disqualifying offenses or crimes. Employers failing to comply with the provisions of the legislation are subject to a fine of up to $1,000. The cost of criminal history background checks may be assumed by a prospective employer or the prospective employee.

Agency Comments:

      DHSS, DLPS and the Office of Management and Budget have not provided any fiscal information on the legislation. However, on similar legislation, Senate Bill No. 299 of 1994, DHSS estimated its costs at $394,000, $292,000 and $306,000, respectively, over the next three fiscal years, primarily for the cost of five employees.

Office of Legislative Services Comments:

      There is no direct cost to the State as a result of this legislation as the cost of the criminal history background check is to be borne by either the employer or employee. If an employer assumes the cost of the background check (currently $50 per employee), the employer may seek to pass such costs on to the payers of health care costs, including Medicaid. The extent to which payers of health care, including Medicaid, would reimburse employers for such costs cannot be determined.

      As an employer, the State already conducts background checks for persons seeking employment at the State's psychiatric hospitals and developmental centers. Thus, the State would not incur any additional costs for these employees.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.