This bill establishes governance and service standards for developmental disability service providers in New Jersey, specifically targeting those agencies authorized to provide $250,000 or more in billable services during the previous State fiscal year. It mandates that these "covered provider agencies" have a board of directors with a minimum of five members, the majority of whom must be independent. Additionally, the bill requires the appointment of a self-advocate or family member of a recipient as a board observer, ensuring that the interests of service recipients are represented. Covered provider agencies with revenues exceeding $2 million must also form an independent audit committee to oversee financial practices. The bill emphasizes transparency by requiring these agencies to publicly post their three most recent annual audited financial statements on their websites.

To ensure that funds are primarily used for direct client services, the bill imposes a cap of 15 percent on expenditures for executive compensation and administrative costs, while also updating existing salary caps based on the state's minimum wage increases. It prohibits loans to staff members and requires agencies to report significant operational changes that could adversely affect service delivery. Furthermore, the bill mandates the establishment of written policies on nepotism, conflicts of interest, and retaliation to foster a safe environment for reporting concerns. To support the implementation of these provisions, the bill appropriates $300,000 from the General Fund to the Department of Human Services for hiring additional staff to monitor compliance.