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A 3974

Creates the office of the ombudsperson for behavioral health access

2025 Regular Session Introduced by Phara Souffrant Forrest

Bans deceptive marketing by SUD treatment providers and recovery residences; requires accurate, plain-language disclosures of services, locations, and contact info, with penalties.

REFERRED TO MENTAL HEALTH
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Bill Summary · A 3974

Summary — A3974 (P.L.2025, c.122)

Creates prohibitions and enforcement tools to stop deceptive marketing by substance use disorder (SUD) treatment providers and recovery residences; requires clear, accurate marketing information.

Purpose / intent

To protect people seeking SUD treatment from misleading advertising and referral practices by requiring truthful, complete marketing and creating civil and administrative consequences for deceptive practices.

Key provisions

  • Marketing requirements: Any marketing or advertising published or distributed by a covered provider must be accurate, in plain language, and must include:
    • types and methods of services provided;
    • the location(s) where services are provided; and
    • the provider’s name and brand name, phone number, mailing address, and business location address.
  • Prohibited (unlawful) marketing practices (examples):
    1. False or misleading claims about in-network or out-of-network status.
    2. Providing or directing others to provide false or misleading identity or contact information for any provider.
    3. False/misleading Internet address information or surreptitious website redirection.
    4. Suggesting or implying an affiliation with another provider or residence unless there is express written consent.
    5. Misrepresenting the SUD treatment services actually provided.
    6. Misrepresenting the geographic location of the provider or where services are provided.
  • Private right of action: A person harmed by a violation may sue (or assert a counterclaim). Courts may award treble damages (3x actual damages) plus reasonable attorney fees, filing fees, and costs.
  • Civil penalties: Up to $20,000 per violation. Penalties to be collected under the Penalty Enforcement Law (summary proceedings in municipal court where applicable).
  • Administrative enforcement:
    • Department of Health (Office of Licensing) may investigate licensed treatment providers; may suspend/revoke licenses/certifications or impose civil penalties (≤ $20,000/violation).
    • Department of Community Affairs (DCA) may investigate recovery residences; may suspend/revoke licenses/certifications or impose civil penalties (≤ $20,000/violation).

Definitions (selected)

  • “Treatment provider” — facilities licensed under C.26:2B-14 or facilities with a certificate of approval under relevant statutes for SUD treatment.
  • “Recovery residence” — a boarding house licensed by DCA providing sober, alcohol- and drug-free living accommodations to individuals with SUD or co-occurring disorders but not providing clinical treatment services.

Fiscal and operational impact

  • Office of Legislative Services estimate: minimum $500,000 annually to the Department of Health to hire staff for investigations/enforcement. Additional indeterminate costs to DCA to oversee recovery residences, and indeterminate costs to Judiciary and municipal courts to hear related cases. Potential but unquantified increases in state/local revenue from collected civil penalties and court fees.

Effective date and status / timeline

  • Enacted: Approved August 11, 2025 — P.L.2025, c.122. The law takes effect immediately.
  • Legislative actions: Passed Senate and Assembly (final Assembly passage recorded 6/30/2025; Senate passage 3/24/2025). Companion: S3955.

Who is affected

  • Primary: licensed SUD treatment facilities and licensed recovery residences operating in New Jersey (and entities that market on their behalf).
  • Secondary: people seeking SUD treatment and payers/referrers (who rely on accurate provider information), municipal courts and the state administrative agencies (DOH and DCA).

Sponsors: Assemblyman Anthony S. Verrelli (primary listed in records), multiple co-sponsors; companion bill S3955.

Compiled from official sources — confirm details with the bill’s official record.

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