LEGISLATIVE FISCAL ESTIMATE

[First Reprint]

SENATE, No. 3864

STATE OF NEW JERSEY

220th LEGISLATURE

 

DATED: JUNE 28, 2023

 

 

SUMMARY

 

Synopsis:

Establishes "New Jersey Maternal and Infant Health Innovation Center Act," and appropriates $23,220,000.

Type of Impact:

Annual State cost increase; annual State revenue increase.

Agencies Affected:

New Jersey Maternal and Infant Health Innovation Authority; Department of Health

 

 

Office of Legislative Services Estimate

Fiscal Impact

Year 1 

Year 2 and Thereafter 

 

State Cost Increase

Minimum of $23.2 million

Indeterminate

 

State Revenue Increase

Indeterminate

Indeterminate

 

 

 

 

·         The Office of Legislative Services (OLS) determines that State costs will increase by a minimum of $23.2 million in the first year in order to establish the New Jersey Maternal and Infant Health Innovation Authority.

·         The bill appropriates $23.2 million to cover the operational, administrative, and other expenses of the authority.  At least $3.2 million of this amount is to be allocated for startup costs, staffing, and to provide annual salaries to the public members of the authority’s board and annual stipends to community advisory committee members.

·         State expenditures in subsequent years will depend on any additional State appropriation that may be deemed necessary to support the activities of the authority as well as by the authority’s own operating activities, including the awarding of grants and the extension of credit, including loans, to private companies and public organizations.

·         Annual revenue will accrue to the State from the repayment of these loans and other extensions of credit, the receipt of donations from public and private sources, the receipt of federal funds, and potentially from other sources.

BILL DESCRIPTION

 

     This bill creates the New Jersey Maternal and Infant Health Innovation Authority to assume primary responsibility for coordinating the State’s efforts to reduce maternal mortality, morbidity, and racial and ethnic disparities in maternal health care in the State, and to expand the State’s perinatal workforce.  The bill directs that all powers, duties, and State appropriations for the New Jersey Maternal Care Quality Collaborative will transfer to the authority.  The collaborative, which was established within the Department of Health, coordinates State initiatives to reduce severe maternal morbidity and mortality, and racial and ethnic disparities in the provision of maternal health care.

      The bill provides that the authority will be governed by a 15-member board, which is empowered to: fund perinatal workforce development and certifications; provide grants or extend credit, including loans, to private companies, and private and public entities for projects that further the authority’s mission and goals; award grants or competitive prizes; enter into contracts; employ consultants, contractors, and specialists in relevant fields; contract for and accept grants, loans, or other aid from the federal government, State agencies, a recipient of a State or federal grant, or from any other public or private source; and solicit contributions from public and private entities.  The public members of the board will receive an annual salary of $20,000, while the ex officio members of the board will serve without compensation, but will be reimbursed for any reasonable expenses incurred in the performance of their official duties.

      The board is also required to maintain offices in a center, which will be located in the City of Trenton.  The bill authorizes the board to purchase, acquire, develop, and manage property, and enter into contracts or leases necessary or related to the performance of its duties, including the leasing of space to tenants within the center, which tenants may include licensed health care facilities or providers that offer maternal, infant, and pediatric-related care and services. 

      The bill also provides that the board will coordinate with a community advisory committee to support and inform the work of the authority; the 11 members of the advisory committee will receive an annual stipend of $20,000.

       The board is also authorized to form or assume control of one or more nonprofit entities, which entities may engage in fundraising activities to solicit funds from public and private organizations to support maternal and infant health services, perinatal workforce development, research, and innovation in the State.  The bill additionally empowers the nonprofit entities, under the board’s purview, to operate as membership-based organizations, with the ability to generate revenues from members.  The bill stipulates that any funds received by such nonprofit entities, beyond those necessary to pay for the entities’ expenses, must be used for the support of the authority and its activities.

      The bill provides that the authority will establish and maintain a special non-lapsing fund, which will be known as the New Jersey Maternal and Infant Health Innovation Authority Fund.  The fund will be the repository for: 1) any State appropriations for the purpose of the fund; 2) any funds received by the authority from the repayment of loans or other extensions of credit authorized under the bill; and 3) any other moneys that the authority determines to be appropriate to deposit into the fund.

      The bill appropriates $23.2 million from the General Fund to the New Jersey Maternal and Infant Health Innovation Authority Fund for the operational, administrative, and other expenses of the authority.  Of this total amount, the bill specifies that at least $3.2 million will be allocated specifically for the implementation of the act, startup costs, staff, and stipend compensation.

 

FISCAL ANALYSIS

 

EXECUTIVE BRANCH

 

      None received.

 

OFFICE OF LEGISLATIVE SERVICES

 

      The OLS determines that State costs will increase by a minimum of $23.2 million in the first year in order to establish the New Jersey Maternal and Infant Health Innovation Authority.  The bill appropriates $23.2 million to cover the operational, administrative, and other expenses of the authority.  At least $3.2 million of this amount is to be allocated for startup costs, staffing, and to provide an annual salary to public members of the authority’s board and an annual stipend to community advisory committee members.

      State expenditures in subsequent years will depend on any additional State appropriation that may be deemed necessary to support the activities of the authority as well as by the authority’s own operating activities, including the awarding of grants and the extension of credit, including loans, to private companies and public organizations.

      Annual revenue will accrue to the State from the repayment of these loans and other extensions of credit, the receipt of donations from public and private sources, the receipt of federal funds, and potentially from other sources. 

 

Section:

Human Services

Analyst:

Anne Cappabianca

Senior Fiscal Analyst

Approved:

Thomas Koenig

Legislative Budget and Finance Officer

 

This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

 

This fiscal estimate has been prepared pursuant to P.L.1980, c.67 (C.52:13B-6 et seq.).