This bill mandates that new residential substance use disorder treatment facilities in New Jersey must allocate at least 40 percent of their beds for NJ FamilyCare eligible individuals as a condition for obtaining an initial license from the Department of Health. Facilities are required to 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 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 risk not having their licenses renewed.

The bill also provides a clear definition of what constitutes a residential substance use disorder treatment facility, encompassing various types of treatment settings such as halfway houses and extended care facilities. The Commissioner of Health is tasked with adopting necessary rules and regulations to implement the provisions of this act. The legislation is set to take effect on the first day of the seventh month following its enactment.