LEGISLATIVE FISCAL ESTIMATE
[First Reprint]
ASSEMBLY, No. 3974
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JULY 1, 2024
SUMMARY
Synopsis: Prohibits use of deceptive marketing practices by substance use
disorder treatment providers.
Type of Impact: Minimum $0.5 million annual increase in State expenditures; annual
increase in State revenues; annual increase in expenditures for the
Judiciary and certain municipalities.
Agencies Affected: Department of Health, the Judiciary, and certain municipalities.
Office of Legislative Services Estimate
Fiscal Impact Annual
State Expenditure Increase Minimum $500,000
State Revenue Increase Indeterminate
Local Expenditure Increase Indeterminate
 The Office of Legislative Services (OLS) concludes, based on information provided by the
Office of Management and Budget as part of the FY 2025 Budget process, that Department of
Health expenditures will increase by $500,000 annually for the Office of Facility Licensing to
hire additional staff to investigate violations, suspend or revoke the licenses or certificates of
substance use disorder treatment providers who violate the bill’s provisions, and impose civil
penalties against such violators.
 The bill could increase State costs to the Judiciary and to certain municipalities to hear
additional cases related to violations of the bill’s provisions.
 The OLS cannot quantify the potential revenue increases under the bill because the number of
treatment providers who will violate the bill’s provisions each year cannot be anticipated.
Office of Legislative Services Legislative Budget and Finance Office
State House Annex Phone (609) 847-3105
P.O. Box 068 Fax (609) 777-2442
Trenton, New Jersey 08625 www.njleg.state.nj.us
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BILL DESCRIPTION
This bill prohibits the use of deceptive marketing practices by substance use disorder treatment
providers who are licensed or certified by the Department of Health to provide inpatient or
outpatient substance use disorder treatment or recovery residence services.
Treatment providers who violate the bill’s provisions will be liable for a maximum civil
penalty of $20,000 for each violation. A person who suffers any injury or damages as a result of
the misleading or deceptive marketing or advertising methods or practices declared unlawful under
the bill may bring an action or assert a counterclaim in a court of competent jurisdiction. In
addition to appropriate legal or equitable relief, the court will award threefold the damages
sustained by any person in interest and award reasonable attorney's fees, filing fees, and reasonable
costs of suit.
The Office of Licensing in the Department of Health may investigate alleged violations of this
bill. Upon finding a violation, the department may suspend or revoke the treatment provider’s
license or certification, if applicable, or may impose a civil penalty against the treatment provider.
If the department imposes a civil penalty, the civil penalty will be not more than $20,000 for each
violation.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS concludes, based on information provided by the Office of Management and Budget
as part of the FY 2025 Budget process, that Department of Health expenditures will increase by
$500,000 annually for the Office of Facility Licensing to hire additional staff to investigate
violations, suspend or revoke the licenses or certificates of substance use disorder treatment
providers who violate the bill’s provisions, and impose civil penalties against such violators.
Additionally, the Judiciary and municipal courts could incur indeterminate annual costs to hear
additional cases brought for treatment providers violating the provisions of the bill. Additional
annual revenues could accrue to the State and municipalities from the collection of civil penalties
and court fees. The OLS, however, cannot quantify the potential revenue increases under the bill
because the number of providers who will violate the bill’s provisions each year cannot be
anticipated.
Under current law, the Department of Health licenses substance use disorder treatment
providers for a two year period, as long as the provider continues to meet the departmental
standards concerning patient health and safety, accurate representation of the treatment services
available to patients, and the payment of licensure fees. If a treatment provider fails to meet or
maintain these standards, the department, after holding a hearing, may refuse to grant, restrict,
suspend, or revoke the license of a treatment provider. Prior to issuing or renewing a treatment
provider’s license, department staff are required to first inspect the provider’s facility, and may
examine the providers’ financial accounts and records, as determined necessary.
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Section: Human Services
Analyst: Anne Cappabianca
Senior Fiscal Analyst
Approved: Thomas Koenig
Legislative Budget and Finance Officer
This legislative fiscal estimate has been produced by the Office of Legislative Services due to the
failure of the Executive Branch to respond to our request for a fiscal note.
This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).