This bill establishes regulations for the use of social care information within a Closed-Loop Referral System (CLRS). It defines key terms such as "Closed-Loop Referral System," "participating organization," "social care," and "social care information," outlining the scope and purpose of these definitions. The bill specifies that participating organizations, which include healthcare providers and nonprofit entities, are prohibited from selling or licensing social care information stored in or transmitted through a CLRS. Additionally, it mandates that such information can only be used for the purposes for which it was originally collected or generated.

To enforce these regulations, the bill imposes a civil penalty of $1,000 for each violation committed by a participating organization that improperly sells or transmits social care information. The Division of Consumer Affairs in the Department of Law and Public Safety is tasked with collecting and enforcing these penalties. Furthermore, the Director of the Division is required to adopt necessary rules and regulations for the implementation of the act, which will take effect 180 days after enactment.