WeVote
Log In

Bill

Bill

A 2268

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.

2026-2027 Regular Session Introduced by Verlina Reynolds-Jackson and 5 co-sponsors

The bill would require SUD/AUD providers receiving state funds or licensure to undergo conflict-of-interest assessments and remedy identified conflicts before funding or certificat

Reported out of Assembly Committee, 2nd Reading
0
WeVote Research Nonpartisan
Bill Summary · A 2268

Purpose and intent

  • This bill, Assembly No. 2268 (A-2268) from the 222nd New Jersey Legislature, would require certain providers of substance use disorder (SUD) and/or alcohol use disorder (AUD) treatment, services, or supports to be assessed for conflicts of interest before they receive State funds, or before being licensed or certified.
  • The underlying goal is to ensure that providers delivering treatment or related services are free from conflicts that could unduly influence judgments or actions, thereby safeguarding program integrity and client care.

Key provisions and changes

  • Review and assessment requirement
    • A reviewing entity (a State, county, or municipal body that provides State funds or licenses/certifies providers) must assess a provider for conflicts of interest prior to distribution of State funds or approval of licensure/certification.
    • Assessments cannot be conducted more frequently than once every 365 days, unless subsection e dictates otherwise.
  • Information gathered for assessment (minimum items)
    1. Financial statement detailing annual revenues, expenditures, and profits.
    2. List of all board members with each member’s profession and employer.
    3. List of all stakeholders, investors, owners, or anyone with a financial interest in the provider.
    4. List of those with financial interests in the provider who also have financial interests in a secondary entity, plus the name of that secondary entity.
    5. List of all staff members with titles and job duties.
    6. List of staff with outside employment, including the outside employer’s name and the staff member’s responsibilities in that role.
  • Determination of conflicts
    • If a conflict is found that could impede delivery of treatment/services, the reviewing entity must notify the provider in writing, describe the conflict, explain remedies, and state that the provider will be ineligible for State funds or licensure/certification until the conflict is remedied (with a 90-day remedy window).
  • Remedies and reevaluation upon remedy
    • After a provider remedies the conflict, the reviewing entity must: 1) Immediately distribute any otherwise-eligible State funds. 2) Remove any hold on the provider’s State-fund applications and process per existing guidelines. 3) Issue or restore certification/licensure if eligible.
    • The reviewing entity must reassess the provider for conflicts twice in the next calendar year after remedy, then once in the second calendar year, and once in the third calendar year (i.e., a total of four reassessments over three years following remedy).
  • Definitions
    • “Conflict of interest” includes any circumstance creating a risk that judgments or actions by someone with a financial interest or outside affiliation could be unduly influenced by that interest.
    • The act excludes from “conflict of interest” the mere ownership (in whole or part) of more than one facility or program that provides SUD/AUD treatment or supports.
    • “Provider” covers health care professionals, facilities, or programs licensed/certified in New Jersey or applying for licensure/certification to provide SUD/AUD services.
    • “Reviewing entity” includes any State or local body that provides funds or licenses/certifies providers who accept referrals from a State-funded entity.
  • Administrative and effective date
    • If needed, reviewing entities with rulemaking authority would adopt regulations under New Jersey’s Administrative Procedure Act.
    • The act would take effect 180 days after enactment.

Who would be affected

  • Providers seeking or receiving State funds, and providers receiving licensure or certification from entities that accept client referrals from State-funded programs.
  • Reviewing entities at the state, county, or municipal level responsible for funding, licensing, or certifying SUD/AUD providers.
  • Stakeholders with financial interests in providers or in related secondary entities, as part of the disclosure requirements.

Procedural and timeline aspects

  • Assessments occur before State funds distribution or licensure/certification approval, with a 365-day maximum interval between assessments unless specified otherwise.
  • If a conflict is identified, remedies must be completed within 90 days from written notification.
  • Upon remedy, funding disbursement and certification processes resume immediately, and reassessments occur multiple times over the next three calendar years (twice in the next calendar year, then once in each of the subsequent two years).
  • The bill includes provisions to issue rules and regulations to implement its requirements.
  • Enactment timeline: the bill provides for a 180-day effective date after enactment.

Potential impacts and considerations

  • Could increase administrative oversight and transparency in SUD/AUD provider funding and licensing decisions.
  • May raise compliance burdens for providers to disclose detailed financial and structural information.
  • Aims to reduce potential conflicts of interest that could affect treatment quality or access to funds.
  • Excludes certain ownership structures to avoid penalizing multi-facility ownership, potentially limiting some disqualification concerns.

Note: This summary reflects the bill’s text as introduced and reported through the indicated committee actions; any amendments could modify scope, definitions, or procedures.

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

Sign in to ask a question.