This bill mandates that new residential substance use disorder treatment facilities in New Jersey must allocate at least 40 percent of their beds for individuals eligible for NJ FamilyCare as a condition for obtaining an initial license from the Department of Health. Facilities must achieve this utilization rate within 12 months of licensure and maintain it thereafter. If a new facility fails to comply, the Department of Health will withhold the issuance of an initial license until compliance is documented. Similarly, currently licensed facilities must meet the same 40 percent utilization rate within 12 months of their next license renewal, or they will not be able to renew their license until they demonstrate compliance.

The bill also provides a definition of a residential substance use disorder treatment facility, which includes various types of treatment settings such as halfway houses and extended care facilities, that provide care for substance use disorders for 24 or more consecutive hours to multiple clients who are not related to the governing authority. The Commissioner of Health is tasked with adopting necessary rules and regulations to implement this act, which will take effect seven months after its enactment.