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Bill

S 3952

Establishes local wage enforcement authority in the city of New York

2025 Regular Session Introduced by Jessica Ramos

Expands and tightens laws against kickbacks in patient referrals for SUD treatment, raising penalties, broadening covered entities, and boosting enforcement.

REFERRED TO LABOR
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Bill Summary · S 3952

Summary — S.3952 (2024/2025): Local wage enforcement authority in the city of New York

Note: bill text and accompanying documents concern revisions to New Jersey law on patient referrals to substance use disorder treatment (the bill's title in the prompt appears to be unrelated to its content). This summary reflects the bill text, committee reports, and fiscal notes provided.

Purpose / Intent

S.3952 strengthens and expands criminal and civil prohibitions on payments made in connection with the referral of patients to substance use disorder (SUD) treatment providers. The bill is intended to deter kickbacks, referral fees, and other financial arrangements that could improperly influence placement of patients into SUD treatment facilities, recovery residences, or clinical laboratories.

Key provisions

  • Expands the scope of the existing referral-offense statute (P.L.2021, c.31 / C.2C:40A‑6) to explicitly include:
    • Health care providers and health care facilities
    • Non-profit organizations
    • Recovery residences (defined as sober living housing, professionally- or peer-managed, not providing clinical treatment)
    • Clinical laboratories
  • Upgrades referral offenses from a fourth-degree crime to a third-degree crime (higher maximum penalties).
    • Third-degree crimes in New Jersey generally carry a presumption of non-incarceration for first-time offenders; ordinarily punishable by 3–5 years imprisonment and up to $15,000 in criminal fines.
  • Imposes automatic additional penalties on conviction:
    • Mandatory restitution
    • Mandatory $50,000 criminal fine for any person convicted under the statute
  • Clarifies that assisting, conspiring, or urging another to violate the referral prohibition is likewise a third-degree crime.
  • Establishes exemptions for payments that do not vary based on number of referrals, duration/level/volume/nature of services provided, or amount of insurer/carrier benefits.
  • Enforcement and licensing:
    • Authorizes the Department of Health and the Department of Community Affairs to investigate alleged violations and pursue licensing/certification actions against facilities.
    • If a licensed facility is found in violation, the licensee may face license suspension/revocation and a civil penalty (committee/fiscal documents reference a $20,000 civil penalty for licensees).

Who would be affected

  • Providers and entities subject to the statute: SUD treatment facilities, facilities with certificates of approval, recovery residences, clinical laboratories, health care providers and facilities, non-profit organizations that refer patients.
  • State enforcement and justice agencies: Department of Health, Department of Community Affairs, Department of Law and Public Safety, Division of Consumer Affairs, Judiciary, Office of the Public Defender, and the Office of Administrative Law (for licensing adjudications).

Fiscal and procedural impacts

  • Office of Legislative Services (OLS) estimates indeterminate increases in state expenditures and revenues.
    • Potential increased workloads for prosecutors, courts, public defender, licensing agencies, and administrative law processes; possible additional prosecutions, investigations, and licensing adjudications.
    • Additional criminal and civil fine revenue is possible (criminal $50,000 fine per conviction; statutory fine ranges increase with crime class), but collection historically limited.
    • If incarcerations increase, Department of Corrections costs would rise (OLS cites FY2023 average annual incarceration cost $75,574 per incarcerated person).
  • The bill takes effect immediately upon enactment (per introduced text).

Legislative status & sponsors

  • Introduced: December 12, 2024.
  • Committee actions: Referred to Senate Health, Human Services and Senior Citizens Committee (Jan–Mar 2025); reported with amendments by the Senate Budget & Appropriations Committee (Mar 17, 2025). Reprint dated 3/17/25 incorporates committee amendments (added clinical laboratories, clarified definitions, expanded enforcement).
  • Substituted by Assembly companion A3973 (1R) on March 24, 2025.
  • Metadata lists primary sponsor as Senator Jessica Ramos; reprint lists Senate sponsors Joseph F. Vitale and Benjie E. Wimberly with co-sponsors Diegnan, Burgess, and O'Scanlon.
  • Current status (per provided header): REFERRED TO LABOR.

Related bill

  • Companion: A3973
  • Prior-session related: S6240

This summary focuses on the statute's substantive changes to referral-related criminalization, enhanced penalties, expanded coverage of entities, and enforcement mechanisms along with the OLS-estimated fiscal effects.

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

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