This bill establishes a requirement for annual cost of living adjustments for contracts between the Division of Mental Health and Addiction Services and the Division of Developmental Disabilities within the New Jersey Department of Human Services. Specifically, it mandates that these contracts, effective from the date of the bill, must include an annual increase in the cost of living adjustment based on the Consumer Price Index for the previous 12-month period, which runs from October 1 to September 30. The Department of Human Services is tasked with announcing the rate of this increase each year on October 1.

Additionally, the bill clarifies that programs providing mental health services, substance use disorder treatment services, or services to individuals with developmental disabilities include those that are partially or fully funded by Medicaid and are licensed or approved by the Commissioner of Human Services or other relevant state licensing entities. The Commissioner is also required to adopt rules and regulations to implement the provisions of this act, which will take effect immediately upon passage.