STATE OF NEW JERSEY
219th LEGISLATURE
PRE-FILED FOR INTRODUCTION IN THE 2020 SESSION
Sponsored by:
Assemblywoman JOANN DOWNEY
District 11 (Monmouth)
Assemblyman ERIC HOUGHTALING
District 11 (Monmouth)
Assemblyman DANIEL R. BENSON
District 14 (Mercer and Middlesex)
Assemblywoman VALERIE VAINIERI HUTTLE
District 37 (Bergen)
Co-Sponsored by:
Assemblyman Chiaravalloti
SYNOPSIS
Establishes social innovation loan guarantee pilot program and study commission within New Jersey Health Care Facilities Financing Authority concerning opioid and other substance use disorders.
CURRENT VERSION OF TEXT
Introduced Pending Technical Review by Legislative Counsel.
An Act establishing a social innovation loan guarantee pilot program concerning opioid and other substance use disorders and supplementing Title 26 of the Revised Statutes.
Be It Enacted by the Senate and General Assembly of the State of New Jersey:
1. As used in P.L. , c. (C. ) (pending before the Legislature as this bill):
Authority means the New Jersey Health Care Facilities Financing Authority established pursuant to section 4 of P.L.1972, c.29 (C.26:2I-4).
Eligible organization" means a nonprofit organization that is exempt from federal taxation pursuant to section 501(c)(3) of the federal Internal Revenue Code (26 U.S.C. s.501(c)(3)) that has applied for participation in the social innovation loan guarantee pilot program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill), and is selected by the study commission as qualified to receive a loan guarantee from the social innovation loan guarantee fund established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Pilot program means the social innovation loan guarantee pilot program established pursuant to section 2 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Social innovation loan guarantee fund or fund means the fund established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Study commission means the New Jersey Social Innovation Study Commission established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill).
Treatment and prevention services means the treatment and prevention of opioid and other substance use disorders.
2. a. There is established a five-year social innovation loan guarantee pilot program within the New Jersey Health Care Facilities Financing Authority to administer and determine the effectiveness of a social innovation loan guarantee pilot program. The pilot program shall concern nonprofit health care services that provide for the treatment and prevention of opioid and other substance use disorders with the purpose of encouraging private investment in those treatment and prevention services to lower federal, State, and municipal expenditures related to those services. The pilot program shall assess the feasibility of expanding a social innovation loan guarantee pilot program Statewide and expanding the scope of social impact loan guarantees, made pursuant to subsection b. of this section, beyond the health care sector.
b. Under the pilot program established pursuant to subsection a. of this section, the authority shall guarantee loans issued to eligible organizations for the provision of treatment and prevention services that generate positive social outcomes and public sector cost savings. Each loan guarantee shall be facilitated by the study commission established pursuant to section 3 of P.L. , c. (C. ) (pending before the Legislature as this bill) and consist of:
(1) A lending agreement between an eligible organization, a lender, and a public sector entity which provides: (a) the eligible organization with direct funding from a lender in exchange for the provision of treatment and prevention services; (b) the public sector entity with treatment and prevention services in exchange for defined payments to the lender in an amount proportional to the amount of public sector savings generated by the provision of those services; and (c) the lender with loan repayments in exchange for the provision of funding to an eligible organization.
(2) A loan guarantee agreement between the authority and all parties to the lending agreement from paragraph (1) of this subsection which shall require the lending agreement to conform to the requirements established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) or by the authority; and
(3) An agreement between the authority, the public sector entity making performance payments, the eligible organization, and the lender which agrees to a method of measurement and verification of the public health care services to be performed, how the public sector savings are to be calculated, how the interest rate will be determined, and how funds shall flow between the parties according to each of the agreements made pursuant to this subsection.
c. Up to 100 percent of the value of a loan agreement entered into pursuant to subsection b. of this section may be guaranteed by the authority, provided that the total amount in the aggregate of all loans guaranteed under the social innovation loan guarantee pilot program established pursuant to P.L. , c. (C. ) (pending before the Legislature as this bill) shall not exceed $15,000,000.
d. The authority, in cooperation with the study commission and the Department of Human Services, shall offer to guarantee loans made pursuant to subsection b. of this section utilizing funds from the social innovation loan guarantee fund established pursuant to section 4 of P.L. , c. (C. ) (pending before the Legislature as this bill) to provide a loan guarantee for the purposes of subsection b. of this section. The authority shall consider the following factors:
(1) The economic feasibility of the treatment and prevention services;
(2) The degree to which the treatment and prevention services will advance Statewide and regional treatment and prevention services strategies and objectives;
(3) The degree to which the treatment and prevention services maximizes the leverage of other State funds; and