Sponsored by:
Senator JOSEPH F. VITALE
District 19 (Middlesex)
Co-Sponsored by:
Senator Diegnan
SYNOPSIS
Establishes certain governance and service standards for developmental disability service providers; appropriates $300,000.
CURRENT VERSION OF TEXT
As introduced.
An Act concerning developmental disability service providers, supplementing Title 30 of the Revised Statutes, and making an appropriation.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in this act:
Covered provider agency means a provider agency that is authorized by the division to provide $250,000 or more in billable services during the prior State fiscal year.
Covered service means day habilitation service, individual support service, or any long-term care service provided to an individual at a site owned or leased by a provider agency.
Division means the Division of Developmental Disabilities in the Department of Human Services.
Direct support professional means an employee who directly assists individuals with developmental disabilities with activities of daily living and related supports, including medical and behavioral health needs and workplace and social skills development.
Independent means an individual or entity that has no personal or professional relationship with a provider agency or provider agencys management that would interfere with the exercise of independent judgement in carrying out the responsibilities of a director.
Participant means an individual that is both eligible for division services and enrolled in one of the home and community-based services waiver programs administered by the division.
Provider agency means an entity that is approved both by the Division of Developmental Disabilities and the Division of Medical Assistance and Health Services in the Department of Human Services to provide, and submit fee-for-service claims for, covered services. Provider agency shall not include sole proprietors or participants that hire self-directed employees.
Provider-managed services means: a community residence for people with developmental disabilities licensed pursuant to P.L.1977, c.448 (C.30:11B-1 et seq.); a private residential facility for persons with developmental disabilities licensed pursuant to P.L.1971, c.136 (C.26:2H-1 et seq.) and R.S.30:1-15; a day habilitation site certified by the division; or a covered service.
Recipient means an individual that is both eligible for division services and authorized to receive a covered service from a provider agency.
Site means the physical
location at which provider-managed services are provided to recipients.
2. a. A covered provider agency shall establish a board of directors of at least five individuals, the majority of which must be independent.
b. At a minimum, the board of directors shall meet at least once every three months.
c. Upon request, the board of directors membership, contact information, meeting schedules, and meeting minutes shall be made available electronically to the division, recipients, and family members or guardians of recipients.
d. A covered provider agency shall appoint one self-advocate or family member or guardian of a recipient as a board observer. This individual shall be permitted to participate in all board and executive meetings as a non-voting observer and may also designate another individual or professional to assist in the performance of observer duties and understanding of the provider agencys operations and management. Observer obligations shall be limited to advocacy on behalf of recipients and shall not include any obligations or liabilities related to the management of the provider agency.
e. A covered provider agency with revenues over $2 million in the prior State fiscal year shall establish an audit committee of at least three individuals, all of whom must be independent, and one shall have a masters level degree in finance or accounting, or a nationally-recognized credential in finance or accounting that requires annual continuing education compliance. The audit committees duties shall include, but shall not be limited to:
(1) making recommendations to the board of directors on the hiring and termination of the provider agencys independent auditor;
(2) reviewing and determining whether to accept the annual audit;
(3) approving all non-audit services provided by the audit firm to ensure that independence is maintained; and
(4) monitoring and annually reviewing the provider agencys internal controls, which may be done as part of the audit.
f. A covered provider agency shall publicly post the three most recent annual audited financial statements on the provider agencys Internet website.
3. Each board of directors established pursuant to subsection a. of section 2 of this act shall ensure that the revenues received by the covered provider agency are primarily spent in ways that benefit recipients. At a minimum, the combined costs of annual executive compensation, general and administrative expenses, management fees, interest and lease payments, and similar expenses, plus profit or retained earnings, shall not exceed 15 percent of program revenues. Payments in excess of this percentage shall: be deemed a violation of the standards for the health and safety of recipient care; be recovered by the State as an adjustment of amount paid; and constitute as a condition that supports the appointment of a receiver.
4. a. A covered provider agency shall not pay all of an employees salary, including bonuses, from revenue received solely from division sources in a given State fiscal year, in excess of the schedule as set forth below:
(1) if the provider agency receives over $20 million of revenue from the division, the limitation shall be $250,000 for any individual salary;
(2) if the provider agency receives over $10 million of revenue from the division, but less than or equal to $20 million, the limitation shall be $225,000 for any individual salary;
(3) if the provider agency receives over $5 million of revenue from the division, but less than or equal to $10 million, the limitation shall be $212,500 for any individual salary; and
(4) if the provider agency receives less than $5 million of revenue from the division, the limitation shall be $187,500 for any individual salary.
b. The amounts specified in the schedule set forth in this section shall be increased annually by the same percentage as any increase in the States minimum wage within the previous year.
c. The provisions of this section shall not apply to any salaried staff members providing medical or behavioral services to individuals.