ASSEMBLY, No. 5722

STATE OF NEW JERSEY

219th LEGISLATURE

INTRODUCED MAY 17, 2021

Sponsored by:

Assemblywoman  JOANN DOWNEY

District 11 (Monmouth)

SYNOPSIS

     Establishes annual cost of living adjustment based on Consumer Price Index for programs providing mental health, substance use treatment, or services to persons with developmental disabilities.

CURRENT VERSION OF TEXT

     As introduced.

An Act concerning certain social services programs and supplementing Chapter 4B of Title 30 of the Revised Statutes.

Be It Enacted by the Senate and General Assembly of the State of New Jersey:

     1.    a.  Notwithstanding any other provision of law to the contrary, the terms of a contract entered into between the Divisions of Mental Health and Addiction Services and Developmental Disabilities in the Department of Human Services and a program providing mental health services, substance use treatment services, or services to persons with developmental disabilities on or after the effective date of this act shall include an annual increase in the cost of living adjustment received by the organization.  The cost of living adjustment shall be based on the Consumer Price Index for the previous 12-month period beginning October 1 and ending September 30, as published by the United States Department of Labor.

     b.    On October 1 of each year, the department shall announce the rate of the increase in the cost of living adjustment received by a program providing mental health services, substance use treatment services, or services to persons with developmental disabilities pursuant to subsection a. of this section.

     c.     As used in this section, a program providing mental health services, substance use treatment services, or services to persons with developmental disabilities shall include State Medicaid funded programs licensed or approved by the Commissioner of Human Services that provide emergency, crisis, and residential services and programs that provide case management services and outpatient services to persons with serious mental illness, substance use disorders, or developmental disabilities.

     2.    The Commissioner of Human Services, pursuant to the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1 et seq.), shall adopt rules and regulations to effectuate the purposes of this act.

     3.    This act shall take effect immediately.

STATEMENT

     This bill stipulates that on or after the effective date of the bill, the terms of a contract entered into between the Divisions of Mental Health and Addiction Services and Developmental Disabilities in the Department of Human Services (DHS) and a program providing mental health services, substance use treatment services, or services to persons with developmental disabilities include an annual increase in the cost of living adjustment received by the organization.

     The cost of living adjustment would be based on the Consumer Price Index for the previous 12-month period beginning October 1 and ending September 30, as published by the United States Department of Labor, and the DHS would be required to announce the rate of the increase on October 1 of each year.

     As used in the bill, a program providing mental health services, substance use treatment services, or services to persons with developmental disabilities shall include State Medicaid funded programs licensed or approved by the Commissioner of Human Services that provide emergency, crisis, and residential services and programs that provide case management services and outpatient services to persons with serious mental illness, substance use disorders, or developmental disabilities.