This bill establishes a requirement for annual cost of living adjustments for contracts between the Divisions of Mental Health and Addiction Services and Developmental Disabilities within the New Jersey Department of Human Services (DHS). Specifically, it mandates that these contracts 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, as published by the United States Department of Labor. The DHS is also tasked with announcing the rate of this increase on October 1 of each year.

Additionally, the bill clarifies that programs providing mental health services, substance use 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 of Human Services is required to adopt rules and regulations to implement the provisions of this act, which is set to take effect immediately upon passage.