This bill establishes oversight measures for contracts between the New Jersey Department of Human Services (DHS) and providers serving individuals with developmental disabilities. It mandates that providers 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. Failure to submit these reports can result in "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 requires regular performance evaluations of providers to assess their effectiveness in helping individuals with developmental disabilities achieve their goals as outlined in their individualized habilitation plans. This includes unannounced visits by contract administrators and feedback surveys from employees and guardians of service recipients. If a provider is found to be underperforming, their contract may not be renewed. The bill also directs DHS to explore the implementation of an outcome-based contracting payment system, which would link provider payments to the achievement of specific milestones for individuals receiving services.