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. 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 to ensure transparency and representation of recipient interests. Covered provider agencies with revenues exceeding $2 million must also form an independent audit committee. The bill emphasizes the need for financial accountability by capping expenditures on executive compensation and administrative costs to no more than 15% of program revenues, and it prohibits loans to staff members.

To enhance oversight and accountability, the bill requires covered provider agencies to report significant events that could adversely impact operations, and it grants the Division of Developmental Disabilities the authority to take necessary actions in response to such events. Furthermore, the bill mandates the establishment of written policies on nepotism, conflicts of interest, and retaliation to foster a safe environment for reporting concerns. It also requires the employment of a full-time manager at sites serving more than three clients and incorporates existing insurance standards to protect both staff and service recipients. 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 monitoring staff.