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 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. 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 caps expenditures on executive compensation and administrative costs to 15% of program revenues. It also sets salary limits for employees based on the agency's revenue from the Division of Developmental Disabilities, with provisions for annual adjustments tied to the state's minimum wage. The bill includes requirements for reporting significant events that could impact service delivery, establishing policies against nepotism and conflicts of interest, and employing a full-time manager at sites serving more than three clients. To support the implementation and enforcement of these provisions, the bill appropriates $300,000 from the General Fund to the Department of Human Services.