This bill aims to enhance oversight of contracts between the New Jersey Department of Human Services (DHS) and providers serving individuals with developmental disabilities. It establishes requirements for providers to submit quarterly expenditure reports detailing their spending on services, with a specific focus on ensuring that general and administrative costs do not exceed 10% of the total State contract funds. If providers fail to submit these reports or exceed the cost cap, they may face "negative contracting action," which includes potential contract termination or non-renewal. The Office of the State Comptroller and the Division of Developmental Disabilities (DDD) will conduct reviews of these reports to ensure compliance and appropriateness of expenditures.

Additionally, the bill mandates regular performance reviews of providers to assess their effectiveness in helping individuals with developmental disabilities achieve their goals as outlined in their individualized habilitation plans. Contract administrators are required to conduct unannounced visits at least once a year and evaluate feedback from employees, service providers, and the families of individuals receiving services. If a provider is found to be underperforming, their contract may not be renewed. The bill also requires DHS to consider implementing an outcome-based contracting payment system that rewards providers based on the achievement of specific milestones for individuals receiving services.