LEGISLATIVE FISCAL ESTIMATE
ASSEMBLY, No. 3973
STATE OF NEW JERSEY
221st LEGISLATURE
DATED: JUNE 25, 2024
SUMMARY
Synopsis: Revises laws concerning patient referrals to substance use disorder
treatment facilities.
Type of Impact: Annual State expenditure and revenue increases.
Agencies Affected: Department of Law and Public Safety; the Judiciary; Office of the
Public Defender
Office of Legislative Services Estimate
Annual Fiscal Impact
State Expenditure Increase Indeterminate
State Revenue Increase Indeterminate
 The Office of Legislative Services (OLS) finds that the bill’s expansion of current law
concerning patient referrals to substance use disorder treatment facilities to include health care
providers, health care facilities, non-profit organizations, and recovery residences would
increase the workload of the Department of Law and Public Safety, the Judiciary, and the
Office of Public Defender to the extent the bill results in additional trials and court costs.
 The State may receive additional indeterminate annual revenues from increased fines and
penalties assessed on individuals convicted of the upgraded crimes. Moreover, in addition to
upgrading the crimes from the fourth degree to the third degree, the bill establishes a fine of
$50,000 that would automatically be applied to any person who violates the patient referral
laws. The OLS notes, however, that many penalties historically go unpaid by those convicted
of crimes.
BILL DESCRIPTION
This bill revises current law that criminalizes certain payments for the referral of patients to
substance use disorder treatment facilities. The bill makes it a crime of the third degree for a
person to make or receive a payment or otherwise furnish or receive any fee, commission, or rebate
to any person in connection with the referral of patients to substance use treatment disorder
facilities regulated by the Division of Mental Health and Addiction Services in the Department of
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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Human Services. The bill also provides that a person is guilty of a crime of the third degree if the
person knowingly assists, conspires with, or urges any person to make, furnish, or receive a
payment, fee, commission, or rebate in violation of the bill’s provisions. A crime of the third
degree is ordinarily punishable by a term of three to five years imprisonment, a fine of up to
$15,000, or both. Under current law, these offenses are crimes of the fourth degree, which are
punishable by a term of imprisonment of up to 18 months, a fine of up to $10,000, or both. Under
the bill, a person convicted under either of these offenses additionally would be required to make
restitution and pay a fine of $50,000.
The bill expressly includes health care providers, health care facilities, non-profit
organizations, and recovery residences under the scope of these laws.
FISCAL ANALYSIS
EXECUTIVE BRANCH
None received.
OFFICE OF LEGISLATIVE SERVICES
The OLS finds that the bill’s expansion of current law concerning patient referrals to substance
use disorder treatment facilities to include health care providers, health care facilities, non-profit
organizations, and recovery residences would increase the workload of the Department of Law
and Public Safety, the Judiciary, and the Office of Public Defender to the extent the bill results in
additional trials and court costs. Crimes of the third degree and crimes of the fourth degree carry
the presumption of non-incarceration for first time offenders so the upgrade of the offenses is not
expected to result in additional costs to the Department of Corrections or the State Parole Board.
The State may receive additional indeterminate annual revenues from increased fines because
the upgraded crimes carry increased financial penalties. Moreover, in addition to upgrading the
crimes from the fourth degree to the third degree, the bill establishes a fine of $50,000 that would
automatically be applied to any person who violates the patient referral laws. The OLS notes,
however, that many penalties historically go unpaid by those convicted of crimes.
Section: Judiciary
Analyst: Anuja Pande Joshi
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.).


Statutes affected:
Introduced: 2C:40A-6